Summary of
CanGEA’s 2009 - Geothermal Energy Conference
.
June 2009
4 technical potential in canada/alberta
6 potential
of Geothermal Power in Alberta associated to oil and gas industry
Geothermal Energy Conference was developed in
Vancouver in April 2009. There, the most important Canadian researchers,
industry representatives, policy-makers and representatives of financial
industry were met for discussing about the present and future of Geothermal
Power.
As result of the works presented by different
companies, the actual state of the technology and business, we can conclude
that it is very difficult the development of Geothermal Power in Alberta. Some
technical and economic analysis show a potential in the development of
Geothermal Power associated to the Oil and Gas (O&G) technology.
Lobbyers claimed for the development of policies that
they could help de development of Geothermal Power in Alberta where the
industry is not taken in consideration. In spite of this policy development,
the development of Geothermal Power in Alberta presents very low opportunities due
to the high capital cost involved as well as the high risk associated to the
non knowledge of the available resources over the time.
The congress met researchers, policy-makers, industry and
financial institution representatives and lobbyers; some of them:
·
Dr. Michal Moore[1], University of Calgary
·
Dr. Subir Sanyal[2], GoethermEx
·
Dr. Catherine Hickson[3]
·
Dr. Mory Ghomshei,
University of BC
·
Dr. Stephen Grasby[4], Geological Survey, NRCan
·
Donald Brown, Los Alamos National Laboratory
·
Craig Dunn, Alison Thompson
and Gordon Foo, from CanGEA
·
Representatives of EGS Inc., Magma Energy Corp., BC Transmission
Corp., Jacob Company, Powerex Corp., Evolution Markets Inc., BC Hydro, Nexen,
SCN Lavalin, Sierra Geothermal Power Corp., Nevada Geothermal Power Inc.,
Thermasource, Goethermal Resources Practice Leader, Meridian Environmental Inc., Western
GeoPower, Emerging Energy Research, Ormat Technology, Shell Canada,
Electratherm, GeothermEx, Yukon Energy Corporation, GeoExchange.
Geothermal
energy would be instantly renewable if the energy extraction rate does not
exceed the natural heat loss rate from the earth’s surface, which is of the
same order of magnitude as the worldwide energy consumption rate today.
Type of Geothermal Energy and their potential reserves in
years (reserves based on today human consumption, Dr. Subir Sanyal):
·
Convective Systems (~1),
·
Enhanced Geothermal Systems
(1,400),
·
Conductive Sedimentary
Systems (10),
·
Produced water from O&G
industry (<1),
·
Geopressured Systems (7 to
17), and
·
Magma energy (7)
In Alberta, we have resources for exploitation of Enhanced
Geothermal System and Produced water from O&G Systems.
The worldwide annual Geothermal Power installation is
around 202 MW per year since 1980 up to date. The Canadian development of
Geothermal is negligible in the Canadian territory.
Some companies (Wenster GeoPower, Sierra Geothermal Power
and GeothermEx) presented the results of their projects in Nevada and California,
as summary:
·
The wells have a depth
between 1500 and 2000 meters.
·
Power Capacity around 35 MW
·
Capital Expenditure around 4,000
$/kW
·
Simple payback between 5
years (COE in Wholesale market of 100 $/MWh).
Compared with other technologies, it shows a high capital
cost, but a quick recover of the investment.
This time recover must be short because of the risk
associated to the uncertainty of the source of energy.
In all cases, the emission reported is almost null.
There is not report of a project developed or in develop in
BC, AB, etc.
A common mistake made by policy-makers associated to this
industry (also others) is to take data from other jurisdictions and to apply
them directly to Alberta. For Geothermal Power the geological formation is the
key issue associated to the potential. The geological formation of Alberta is
absolutely different than the geological formation in other jurisdictions. To
estimate the potential, emission, etc, in Alberta based on the direct
application of other jurisdiction data it is a source of mistake.
The
potential for a profitable exploitation of Geothermal Power resources has a
direct relationship with three factors:
According
to the Energy resource mapping known for Canada, the exploitable resources in
BC are between 2000 and 4000 meters of depth. In Alberta, these available
resources are between 4,000 and 6,000 meters of depth.
Considering:
a.
the experience in the development of Geothermal Power
in Nevada and California,
b.
discussion with the industry representatives for the
Alberta’s potential,
c.
their application to Canadian/Albertan geological formation,
d.
discussion with researchers from different
Universalities,
we can
conclude:
·
Not adequate policies supporting the development
·
High risks associated to the drilling and the
availability of the resources over the time.
·
Huge capital expenditure associated to a high risk.
b. In Alberta,
the old geological formation stresses the barriers strongly; the necessary
depth to reach the resources, associated with risks and capital expenditure, do
not make possible in the short and medium term the development of this
industry.
The Federal Government supported
the development of the national survey for the knowledge of the available
resources. As result, according to various speakers, the present position of
the Federal Government is: the potential development of Geothermal Power is
bounded to BC, and some small potential in Yukon; as result, up to day,
Geothermal Power is a provincial issue and the Federal Government doesn't
develop programs to develop Geothermal Industry across Canada[5].
CanGREA claims for a Federal
Government incentive arguing a program similar to WPPI or RPPI/ecoEnergy. One
of the possible tools is Cap and Trade.
In Alberta, although the economic
impossibility in the development of this industry, some barriers were stressed
by speakers:
And advantages:
According
to Dr. Subir Sanyal, the potential in the electricity production from O&G
heating source is limited; Mr. Sanyal associates this barrier to the available
flow in O&G wells. The diameter of O&G wells limits the water flow,
which doesn’t reach the necessary enthalpy to economically develop the
resources.
However,
with the appropriate study of well flow capacity and bottom-hole temperature,
some existent wells in Alberta could be developed for power production. The
lack of experience, necessary skill, data information, high capital cost and
risk associated are the main barriers to develop this business in Alberta
today.
[1] Co-author of “Enhanced Geothermal Systems (EGS) Potential in the Alberta Basin” Panel member of “The Future of Geothermal
Energy” by MIT
[2] Considered the most important specialist in
Canada in Geothermal Power
[3] Volcanologist and principal participant of
NRCan research in volcanoes
[4] Co-author of “Estimation
of Shallow Geothermal Energy Resource in Canada: Heat Gain and Heat Sink”
[5] The Federal Government doesn’t recognize to CanGEA as
a lobby group.