Global Geothermal Leaders to Convene in Washington on Earth Day 2014

Leading figures in geothermal power development will be participating in the GEA International Geothermal Showcase in Washington, D.C. on Earth Day, April 22. This includes speakers engaged in projects in Kenya, Tanzania, Switzerland, Romania, Turkey, Italy, Japan, Indonesia, Guatemala, El Salvador, Nevis, Colombia, the United States, Iceland and more.

“With over 30 speakers already confirmed, the Showcase will present participants a view of the tapestry of geothermal developments around the world,” commented Karl Gawell, GEA’s Executive Director. To emphasize the clean energy attributes of geothermal power, the program is being held on Earth Day. Ali Zaidi, Deputy Director for Energy Policy, White House Domestic Policy Council, will present keynote remarks and Senate Majority Leader Harry Reid (D-NV) will present a video opening greeting to attendees.

In addition to examining geothermal power projects around the world, panels will present leading market analysis discussing the state of the geothermal sector, a top level expert discussion of geothermal project risk reduction, and presentations from leading financial institutions including the World Bank, the Export-Import Bank of the U.S., and the Overseas Private Investment Corporation.

The event will also mark the release of GEA’s 2014 Global Market Update. In the 2013 report, over 70 countries were identified with geothermal power projects or prospects. “We expect 2014 to be an exciting year, with new projects coming on line every month,” noted Ben Matek, GEA Industry Analyst.

GEA is pleased to be holding the Showcase with support from the U.S. Trade and Development Agency, the Overseas Private Investment Corporation, the U.S. Agency for International Development, the U.S. Department of State, the International Trade Administration, U.S. Energy Association, Export-Import Bank of the U.S., and the U.S. Department of Energy Geothermal Technologies Office.

Energy Department Announces $3 Million to Identify New Geothermal Resources

The U.S. Department of Energy today announced $3 million to spur geothermal energy development using play fairway analysis. This technique identifies prospective geothermal resources in areas with no obvious surface expression by mapping the most favorable intersections of heat, permeability, and fluid. While commonly used in oil and gas exploration, play fairway analysis is not yet widely used in the geothermal industry. By improving success rates for exploration drilling, this data-mapping tool could help attract investment in geothermal energy projects and significantly lower the costs of geothermal energy.

The U.S. Geological Survey estimates that 30 gigawatts of undiscovered hydrothermal energy potential exist untapped beneath the Earth's surface – nearly 10 times the current installed capacity of geothermal energy in the United States. One of the keys to tapping this clean resource is reducing the cost and risk of locating it. By quantifying and reducing the risk of exploratory drilling, play fairway analysis projects could unlock significant geothermal energy resources and accelerate industry-wide adoption of this tool.

The Energy Department will support one-year collaborative research and development projects, especially in new, unexplored areas, that adapt play fairway analysis to geothermal exploration. These projects will focus on using existing geologic and geophysical data to develop maps that identify areas with a higher probability of containing a geothermal resource. The research seeks to develop a methodology for exploration of geothermal resources in a particular region, or play. Learn more about this funding opportunity announcement or register for an informative webinar to learn more about the play fairway technique and this opportunity.

The Energy Department's Office of Energy Efficiency and Renewable Energy (EERE) accelerates development and facilitates deployment of energy efficiency and renewable energy technologies and market-based solutions that strengthen U.S. energy security, environmental quality, and economic vitality. EERE supports innovative technologies that reduce both risk and costs of bringing geothermal power online. Learn more about the Department's efforts to develop geothermal energy.

The Geothermal Resources Council Announces 2014 Amateur Photo Contest

The Geothermal Resources Council (GRC) is pleased to announce this year’s Amateur Photo Contest. The purpose of the contest is to showcase quality photography featuring geothermal energy around the world.

The winners will be announced at the GRC Annual Member Meeting and Awards Luncheon, the climax to the 38th GRC Annual Meeting & GEA Geothermal Energy Expo being held at the Oregon Convention Center, Portland, Oregon, USA from September 28 –October 1. The theme for this year’s meeting is “Geothermal: A Global Solution”.

The first place winner will receive $150, second place - $100, and third place - $75. Honorable Mention photos will receive certificates.

Photographs on any subject related to geothermal energy can be submitted such as geothermal energy production, EGS, Direct Use and geothermal heat pumps. These can include photos of well testing, drilling, operation of geothermal equipment, newly developed equipment, or plant operation, construction of a geothermal plant or plant site, and geological areas or surface manifestations (holding potential for geothermal exploration or development).

More information on the GRC Amateur Photo Contest, including a submission form, can be found on the GRC website. The deadline for submissions is August 31, 2014.

Geothermal Resources Council Announces New Board of Directors

 The Geothermal Resources Council (GRC) is governed by a Board of Directors, elected by the general membership to 2-year terms. To provide continuity, half of the Board is elected every year. All GRC members are eligible for election to the Board of Directors.

The global GRC membership took part in the ballot in the late fall, and the result was that four new members of the Board were elected:

Anna Carter: Has worked in geothermal exploration and development for over 30 years and has served several terms on the GRC Board of Directors.

Dennis Kaspereit: Vice President of Geothermal Resources, Terra-Gen Power, LLC, Dennis has over 38 years in the geothermal, oil and gas industries.

William (Bill) Rickard: President of Geothermal Resource Group, Inc., Bill has been involved in the geothermal industry for over 35 years.

Gene Suemnicht: CEO and a Principal for EGS Consulting Inc., Gene has more than 35 years of professional experience in the geothermal industry with Unocal Geothermal and ORMAT Technologies.

Anna Carter, Dennis Kaspereit, Bill Rickard and Gene Suemnicht join the six other members who have been re-elected to the Board of Directors: Toni Boyd, Patrick Hanson, Stuart Johnson, Andy Sabin, Elaine Sison Lebrilla and Karl Urbank.

At the end of 2013, the GRC membership stood at almost 1,500 from 49 different countries.

Ormat Completes the Don A. Campbell Geothermal Power Plant

Ormat Technologies, Inc. announced recently that it had completed the Don A. Campbell geothermal power plant in Mineral County, Nevada. The plant is producing its full capacity of 16 megawatts (net) and performing as expected as of December 6, 2013.

The Don A. Campbell facility, formerly Wild Rose, is receiving a full rate of $99 per megawatt hour with no annual escalation under the terms of the Power Purchase Agreement with Southern California Public Power Authority (SCPPA). SCPPA is reselling the power to Los Angeles Department of Water and Power (LADWP) and Burbank Water and Power (BWP). Ormat wheels the power from the Don A. Campbell plant to SCPPA over NV Energy’s transmission grid including the new One Nevada Transmission Line (ON Line) recently placed in service, making Ormat the first independent power producer to use the ON Line to export renewable energy to customers in California.

“Completing the Don A. Campbell geothermal power plant and reaching full capacity is a historical milestone in our continued partnership with SCPPA to bring reliable, renewable geothermal power to California’s ratepayers,” said Yoram Bronicki, president and chief operating officer at Ormat. “We commend NV Energy for their success in making statewide transmission in Nevada a possibility, thereby allowing resources in northern Nevada to serve customers not only in southern Nevada but also in southern California through ON Line’s completion.”

With a low resource temperature of approximately 260 degrees Fahrenheit, the Don A. Campbell geothermal power plant features Ormat Energy Converter (OEC) technology, allowing for cost-effective power generation from one of the lowest temperature geothermal resources ever deployed on a utility scale by Ormat. The power plant was completed in nine months from start of mechanical construction to full output.

“Ormat’s holistic approach to geothermal development, matching power plant design to the specific characteristics of the geothermal resource through rigorous exploration and field development, allowed our team of experts to work together to develop this successful project,” Bronicki added. “The short construction timeline, followed by just one week of startup operation from initial synchronization to full power, is a testament to the quality of our products and our ability to execute on time and on budget.

“I’d like to extend gratitude to the Ormat team for their great effort that made this project a success and, with its completion, a symbol commemorating our late colleague Don A. Campbell. His talent and experience in the geothermal industry led to the identification of this very special field. He will truly be missed.”

Geothermal Energy in 2013: Expanding Global Growth

As the geothermal industry wraps up an exciting and challenging year, the sector has positioned itself to grow more by 2020 than ever before. “We are seeing new technology developments move forward and new projects being announced in every region of the world,” remarked Karl Gawell, Executive Director, Geothermal Energy Association. “Despite slow growth in the United States, the global market continues to gain steam. So, many American geothermal companies are using their industry know-how in friendlier economic and political climates overseas.”

Industry milestones: This year, the industry surpassed 12,000 MW of geothermal power operational, with about 600 MW of new geothermal power coming online globally. New geothermal power came on line in Kenya, New Zealand, Nicaragua, Turkey, and Mexico, as well as Oregon, Nevada and Utah in the United States. New announcements in the United States, Ethiopia, Kenya, the Caribbean and others have increased the developing resource of geothermal power to about 30,000 MW.

As 2013 comes to a close, U.S. companies are seeing strong geothermal growth in new places around the world. In September, GEA identified 70 countries moving forward with nearly 700 geothermal power projects, compared to a similar report from 2007 that showed only 46 countries developing or actively considering geothermal projects.

International opportunities: The international geothermal power industry is poised to place between 500 and 1,000 MW on line per year for the rest of the decade. This year new geothermal geologic studies or exploration moved forward in places as diverse as American Samoa, Argentina, Armenia, Australia, Azerbaijan, El Salvador, Ethiopia, Indonesia, Japan, Malaysia, Rwanda, Saudi Arabia, St. Vincent and the Grenadines, Taiwan, Thailand, Uganda, the United States, and Yemen.

As states and nations consider fossil fuel replacements, geothermal energy’s unique benefits make it a worthy contender in the changing power sector. At the same time, projects abroad are providing the industry’s top companies, many of which gained their expertise within the United States, with opportunities to stay competitive. Regional financial institutions, country and provincial governments as well as executives in both small and large businesses who are considering energy choices would do well to take a look at geothermal power. There is a growing global consensus that geothermal means clean, reliable energy.

Financing and early development: Financing was announced for projects in Costa Rica, Dominica, Djibouti, Ethiopia, Indonesia, Japan, Kenya, Mexico, Tanzania, and the United States, while projects in drilling and start-of-construction phases made headway in Chile, Germany, Guatemala, Italy, Japan, Montserrat, The Philippines, Rwanda, and Zambia.

GEA member commitments to financing and development stages included MidAmerican’s $1 billion pledge to extend the life of its Salton Sea, California geothermal fields. Additionally, Alstom will build the 25-MW Los Humeros III in Mexico, and Alterra Power announced drilling would begin at its Mariposa, Chile site next year. US Geothermal is building the El Ceibillo geothermal power plant in Guatemala, and Ram Power is at work on the Jacinto-Tizate geothermal power project in Nicaragua.

Technology advancements: The industry’s knowledge about Enhanced Geothermal Systems (EGS) increased in 2013. Successful EGS projects in the U.S. were led by Calpine Corp., Ormat Technologies and AltaRock Energy. Elsewhere, Australia put its first EGS pilot plant, a 1-MW trial, on line at Habanero. In Europe, there were EGS advancements in Hungary, the United Kingdom and Switzerland.

Additionally, the 22-MW Neal Hot Springs, Oregon plant received the GEA Honors Technological Advancement Award in 2013 for being the first commercial, supercritical Organic Rankine Cycle (ORC) binary power plant. It was built by US Geothermal and TAS Energy.

Policy: At the beginning of 2013, geothermal tax credits were adjusted to qualify projects at the construction stage. There are a number of projects that will benefit from this that might not have been built otherwise. While national energy policy was gridlocked, several individual U.S. states opened up new opportunities in 2013:

• Hawaii Electric Light Company completed a geothermal Request for Proposals and is soon expected to announce the winner out of six bidders.
• In California, the Imperial Irrigation District announced plans to develop 1,700 MW of new geothermal as part of an initiative supporting restoration of the Salton Sea.
• In Nevada, NV Energy is looking to replace coal plants with 300 MW of renewable energy, including geothermal.
• Other states are also looking to replace fossil fuel plants in order to meet new federal standards on environmental cleanliness.

Only in the last month of the year have there been signs of change in Washington D.C., with a bipartisan, bicameral budget deal in the Congress and a new clean energy tax proposal by Senate Finance Chair Max Baucus (D-MT). “The budget deal could open the door to finishing appropriations bills, which could reinvigorate the DOE research program,” Gawell said. “And the Baucus tax paper breathes new life into efforts to establish long-term incentives for geothermal and other clean power technologies.”

Outlook

GEA President Craig Mataczynski of Gradient Resources has challenged the industry to reach 5 percent of total U.S. electricity production. To reach this goal it will take advancements in geothermal technology and recognition of the full value of geothermal power. “As policy makers at the state and federal level move to address global warming and need to achieve significant emissions reductions, geothermal power’s unique abilities to replace baseload fossil fuels or firm intermittent resources provides premium value to fulfill state Renewable Portfolio Standard requirements and meet federal environmental standards,” Gawell said.

Events in 2014

GEA hosted several events throughout 2013 that brought together the international geothermal market and helped companies and individuals form partnerships that advance the sector. GEA Events in 2014 will include:

• International Geothermal Energy Forum (Washington, DC): April 22, 2014
• National Geothermal Summit (Reno, NV): August 5–6, 2014
• Geothermal Energy Expo 2014 (Portland, OR): September 28–October 1, 2014

Utah Geothermal Power Plant Begins Operation

Enel Green Power completed and connected to the grid the Cove Fort geothermal power plant, its first plant in the State of Utah (USA).

Cove Fort is a medium-enthalpy geothermal plant, which uses innovative binary cycle technology. The facility is owned by Enel Cove Fort, LLC, a subsidiary of EGPNA Development Holdings, LLC.

The installed capacity of the Cove Fort geothermal plant amounts to 25 MW. The operating facility will be able to generate up to 160 GWh of power per year, therefore avoiding the emission of around 115,000 tons of CO2 into the atmosphere each year.

Construction of the plant, in line with the growth targets set by Enel Green Power’s 2013-2017 Business Plan, required a total investment of approximately 126 million US dollars, financed through the Enel Green Power Group’s own sources.

The power plant is supported by a 20-year power purchase agreement (PPA) for the energy produced by the facility. The agreement was signed with company Salt River Project. Over more, the project is expected to qualify for the Section 1603 Renewable Energy Treasury Grant Program, therefore accessing the fiscal incentives envisaged by said regulation.

In North America, Enel Green Power also owns the geothermal plants of Stillwater and Salt Wells, which are located near Fallon, Nevada. These plants also use the medium enthalpy, binary cycle technology, which is among the most advanced in the sector. Last year, a 26 MW photovoltaic facility was added to the Stillwater geothermal power plant, therefore creating the first hybrid plant in the world with these characteristics.