IGA NEWS

Newsletter of the International Geothermal Association

Quarterly No. 101 1

IGA ACTIVITIES CONTENTS

IGA ACTIVITIES
Message from the President Message from the President... 1
IGA Joined IRENA Finance Workshop 2
Dear IGA members, Help WING Shape its Future 2
This message is about - communication. I have three 39th Annual Meeting of the GRC 3
different topics with communication as a common AFRICA
theme. The first is an initial communication about Ethiopia 4
current IGA strategy discussions, the second is about Kenya 5
the worth of conference field trips for networking and
communication; and the third is around the importance AMERICAS
of communication for geothermal development. Caribbean 6
Chile 7
1. In October 2015 the IGA Board of Directors is going Costa Rica 8
to hold a 1-day strategy discussion in our 62nd meeting El Salvador 8
in Morelia, Mexico. This will enable the IGA to provide Guatemala 9
the best value to the membership in terms of our Mexico 9
objectives; i.e. to encourage research, the development Nicaragua 11
and utilization of geothermal resources worldwide. It is United States 11
possible that the discussion in Morelia will be the first of
several before we emerge with a clear long-term ASIA / PACIFIC RIM
strategy. We will keep you informed on progress. China 14
Indonesia 15
2. I have just returned from the Geothermal Resources Japan 17
Council Meeting and Geothermal Energy Association Malaysia 17
Expo in Reno, Nevada. After the meeting in Reno, I Iran 18
was lucky enough to join the Field Trip to the Philippines 18
McGinness Hills Geothermal Power Plant, owned and Taiwan 20
operated by Ormat Technologies Inc. Ben Delwiche Vietnam 20
from Ormat, Nick Hinz (UNR) and Drew Siler (LBNL)
shared their time, and knowledge with us, and I came EUROPE
away with a much greater understanding of the Nevada Hungary 20
Basin and Range geothermal systems. Fabulous Germany 21
communication skills guys! Field trips are such a Italy 22
valuable learning experience, and an important part of Turkey 22
geothermal events. It is wonderful that owners and
OCEANIA
operators of geothermal plants allow access to New Zealand 24
organized parties of interested people, and I want to
convey appreciation on behalf of the industry. In the OTHER
long term this promotes communication, learning, and Technology: Using Nickel 26
understanding amongst people in the geothermal Technology: Slippery Coating for Turbines 26
community. Technology: New Drilling Technique 27
Technology: Balls of DNA as Tracers 28
3. In the International Session of the GRC meeting, we Finance: Instrument for Insurance 28
heard that the World Bank Global Geothermal Science: High Heat Flow in Antarctic 29
Development Plan is funding geothermal energy Science: Model for Super-Critical Reservoirs 30
programs in seven countries, with discussions ongoing Science: Gold & Silver Resources in Taupo 30
with another three countries. This prompted the Competition Launched by EGP 31
thought: what does the promise of increased Upcoming Events 6
development mean for the sustainability of geothermal

www.geothermal-energy.org October-December 2015

IGA News No. 101
areas and subsurface resources? Geothermal energy
provides local heat and/or power for communities, and
is a clean energy source. It can replace fossil fuels and
hence greenhouse gas emissions; it also has the high
availability without relying on energy storage. This can
make a large contribution to the wellbeing of
communities and nations. However, geothermal power
production has the potential to affect the natural surface
features, the subsurface hydrodynamics, and overlying
built environment. Identifying possible impacts, and
acknowledging the environmental and traditional value
of geothermal resources is important.
Local communities often have a relationship with
geothermal energy built on centuries of social custom
and local industry. Traditional uses may be small scale,
but of importance to local people for enhancing quality
of life, such as bathing pools, and for traditional crafts
such as preparation of flax fibre, or hydrothermal
minerals used in preparation of paints. Geothermal
activity has a spiritual significance in some cultures; for
instance, the traditional explanation for volcanic and
geothermal features of New Zealands Central North
Island is that the fire was sent to warm a Maori explorer
on his journey from the coast inland to central New
Zealand. On a larger scale, New Zealand Maori Trusts
are heavily involved in large scale geothermal
developments, bringing great benefits to their members
and local communities. These are very specific
examples, and demonstrate that balancing the interests
of all the users of the resource must be done in a
national and local setting, in order to accommodate the
particular needs and values of the nation and
communities. The common theme is communication;
from communicating with local communities, to
international communication on comparisons of
investment models, regulatory, and policy issues. We all
GRC McGinness Hills Field Trip, Nevada, 2015. Photo courtesy of the
Geothermal Resources Council.
www.geothermal-energy.org
2
have something to learn.
Warm regards,
Juliet Newson
President, International Geothermal Association
IGA Joined IRENA Finance
Workshop
From 22-23 September 2015 the International
Renewable Energy Agency (IRENA) organized the
workshop Financing Geothermal Development in the
Andes. The workshop objectives were to identify the
main barriers that Andean countries face in financing
geothermal projects and to look at options how
geothermal risks can be minimized. Best practices and
innovative project financing models were presented and
shared among workshop participants. The IGA
Executive Director Marietta Sander contributed with an
input on the Global Geothermal Market and Investment
Opportunities. The audience included representatives
from the five Andean countries Bolivia, Chile,
Colombia, Ecuador and Peru, private sector
representatives, insurance companies, development
partners, consultants and colleagues from Mexico,
Iceland, Germany, El Salvador and elsewhere. The
workshop presentations and photos will soon be shared
on the IRENA Website in the event section:
http://www.irena.org/events/eventsarc.aspx?mnu=cat
&PriMenuID=30&CatID=79.
Help WING Shape its Future
WING (Women in Geothermal) is currently preparing a
five-year plan. Please help in
shaping this by filling in a short
survey to gauge what WING wants,
and where WING should be
heading as a group. No matter
where in the world you are, or
whether you are male or female.
The survey is completely
anonymous:
https://www.surveymonkey.com/r
/DX7568X.
In case you encounter any IT
problems, kind contact:
sophie.milloy@gmail.com. WING is
also on Facebook:
https://www.facebook.com/login.p
hp?next=https%3A%2F%2Fwww.f
acebook.com%2Fgroups%2Fwome
ningeothermal%2F.
October-December 2015
IGA News No. 101 3

39th Annual Meeting of the Indonesia, Philippines, Japan, the Middle East, Europe,
South America, Central America, and North America.
GRC
On Sunday September 20th, before the popular Opening
Luis C.A. Gutirrez-Negrn, Chair of Reception that officially begins the event, the United
the Information Committe States Energy Associations East Africa Geothermal
From September 20th through 23rd, the Geothermal Partnership Program (EAGP) hosted an Executive
Resources Council (GRC), the largest and oldest Exchange Introductory Briefing. For a couple of hours,
geothermal national professional association, held its delegates from Djibouti, Ethiopia, and Kenya described
39th annual meeting in Reno, Nevada, USA, in parallel current and upcoming geothermal opportunities in their
with the Geothermal Energy Expo organized by the countries.
GEA (Geothermal Energy Association). This was the Prior to the meeting, two short workshops were offered
largest annual event for the industry worldwide, only on September 18th and 19th. Drilling and Risk
behind the 2015 World Geothermal Congress held in Management was presented by Patrick Hanson and
Melbourne, Australia, in April 2015. Geothermal Louis E. Capuano Jr. and Practical Aspects and
companies, academics, financiers, policy leaders, Applications of Geochemistry was presented by Stuart
students, and other individuals, not only from the US Simmons and Elizabeth Easley. Pre-meeting field trips
but from several other geothermal countries, met to were made to the Long Valley Caldera on September
discuss geothermal issues. 18-19 (conducted by Gene Suemnicht and Duncan
The GRC Annual Meeting & GEA Expo was held at Foley) and to the nearby Steamboat Power Plant
the Peppermill, the only resort facility in the US using Complex on September 20th (conducted by Greg
geothermal waters to heat its buildings and swimming Rhodes and John Arkeley). The post-meeting field trip
pools. Participants were invited to tour the facilities. was to the McGinness Hills geothermal power plant on
Over 1,100 participants from 25 countries came to the September 23-25.
exhibition and the congress, among them Mexico, Around 120 technical papers were orally presented in
Kenya and Turkey with the largest amount of attendees. simultaneous sessions and nine presentations were made
Technical issues, policy, marketing sessions, educational in the International Session. Another 14 papers were
seminars, tours of geothermal and renewable energy presented exclusively in poster format. The number of
projects, and numerous networking opportunities papers in each oral session follows.
occurred.
The GEA Expo included exhibits by around 90 leading Session subject Papers
companies featuring new technology from drillers,
Power Plants 15
suppliers, developers, and seven international, federal
and state agencies and institutes. EGS 13
Play Fairways 13
Nevada is the second state behind only California in
International Session 9
total geothermal power production in the US and the
home of 17 producing geothermal systems, including six Geology 8
new systems developed within the last six years. Direct Use 7
Geothermal energy production accounts for over 6% of Drilling 7
the states total power consumption, according to Lisa Exploration 7
Shevenell, General Chair of the GRC meeting. There Geophysics 6
are also 23 geothermal power plants in operation in the
Country Updates 5
Silver State, the first of which was commissioned in
1985, so 2015 becomes the thirtieth anniversary of East African Rift 5
geothermal power in Nevada. Geochemistry 5
Tools 5
Special presentations were available for international
visitors. The eighth annual GRC International Basin and Range 4
Luncheon brought together experts from around the Reservoir Engineering Modeling 4
world. U.S. private and public sector stakeholders Scaling and Mineral Extraction 4
discussed geothermal energy developments in Eastern Oil and Gas 3
Africa, Ukraine and the Philippines. Attendees met the Regulatory 3
experts and explored partnership opportunities. At the
Resource Assessment 3
GRC International Session, experts from around the
world offered the latest geothermal energy Sedimentary Basin 3
developments in regional markets: Australasia, Total 129

www.geothermal-energy.org October-December 2015

IGA News No. 101
General view of the Opening Session. Photo by the GRC.
At the 2015 Annual Membership Meeting and Awards
Luncheon on the last day of the event, the GRC 2015
awards were presented to Gene Suemnicht (The Joseph
W. Aidlin Award), Alfredo Lahsen (The Geothermal
Pioneer Award), Thomas Kohl (The Henry J. Ramey Jr.
Award), Robert Tucker (The Ben Holt Award), and
Roland Horne, Ryuichi Itoi, Al Waibel received the
Geothermal Special Achievement Award.
Other activities and side events included the
International Direct Use B2B reception, hosted by
CanGEA and the IEA-GIA, a reception organized by
WING (Women in Geothermal), and the 5 th Annual
Geothermal Young Professional Dinner.
AFRICA
Ethiopia: Expansion of Aluto
Langano and Issues on the
PPA for the Corbetti Project
Expansion of the Aluto Langano Project - The
expansion project of the Aluto Langano geothermal
power station was finished recently, with two new flash
power plants, each with 35MW capacity starting
operations in early July. In the same area, two binary
cycle plants with a combined capacity of 7MW (8.5MW
gross) were installed in 1998 as a pilot project to test the
geothermal resource and identify issues able to affect
the power plant. In December 2013, drilling activities
began to increase the capacity in the field, extending an
area of 8-9 square kilometers with a total, minimum
potential estimated at 100MW. Activities included
drilling 20 deep geothermal wells, deploying a heat-
www.geothermal-energy.org
4
gathering system, constructing and installing the units
and a switchyard, and building a 13 km long, 132 kV
transmission line. The Japanese Government and the
World Bank provided financial support for the
expansion at an estimate of 2 billion Ethiopian Birr
(around US$97 million). The share for the Japanese was
around US$10 million. The Ethiopian Minister of
Water, Irrigation and Energy, Alemayehu Tegenu, said
the Aluto Langano station will play a crucial role in the
second Growth and Transformation Period for Ethiopia
by harnessing its huge geothermal potential for
generating electricity. Studies show that Ethiopia has the
potential to generate as much as 10,000 MW of
electricity from geothermal energy in its rift valley
region.
Sources: http://www.2merkato.com/news/alerts/3930-
aluta-langano-geothermal-power-station-starts-
generating-power,
http://allafrica.com/stories/201312300069.html,
http://archive.crossborderinformation.com/Article/Et
hiopia+Work+begins+at+Aluto+Langano+geothermal
+plant.aspx?date=20140116
Issues on the PPA for the Corbetti Project - In late
July, Ethiopian Electric Power and the Corbetti
Geothermal Company signed a Power Purchase
Agreement (PPA) for the first 500 MW of this project.
The Corbetti project is located 200 kilometers south of
the capital, Addis Ababa, and will be built in two stages
within 8 to 10 years. The first stage of 500 MW is
scheduled to be completed in 2018 and the second in
2021. On completion, it will become Africas largest
geothermal facility. During the visit of the US President
Barack Obama to Ethiopia in July, the Ethiopian
Government and the US-Icelandic Firm Reykjavik
October-December 2015
IGA News No. 101
Geothermal signed a construction agreement to kick off
the first 500 MW phase of the project. However, by
middle September the whole deal was on shaky ground,
which may prompt the company to walk away from it.
Both parties were striding forwards with optimism and
nothing concrete, confirmed Markos Melaku, general
manager of Corbetti Geothermal Plc. The agreement
entered is far from setting clear terms in many aspects,
Markos stated. The agreement was signed without the
groundwork having first been conducted, including a
regulatory framework, specific business regulation and
standard procedures. The existing business law of the
country was adopted in the 1960s and falls far short of
the levels required to govern the commercial
engagements of such deals. Corbettis executives have
continued to undertake the civil work on the site and are
hoping that an implementation agreement a
subsidiary agreement to the PPA will be signed soon.
Sources:
https://www.facebook.com/photo.php?fbid=52785123
4028808, http://www.iol.co.za/business/news/obama-
gives-ethiopia-power-boost-1.1891632#.Vbgupfl_Okp,
http://www.equities.com/index.php?option=com_k2&
view=newsdetail&id=423213#sthash.XdDlmTPt.dpuf
Kenya: Drilling in the Akiira
Project and High Share of
Geothermal Energy
Akiira Project Drilling Covered by Munich Re Risk
Insurance - A multi-well, exploration risk cover is
being provided for the Kenyan Akiira project developed
by the joint venture Akiira Geothermal Limited (AGL).
Munich Re is engaging in a series of up to eight drillings,
making the projects financing more dependable and
easier to schedule. The premiums become due in
installments as the drillings progresses. Possible
measures to stimulate or increase output by deepening
the wells, or through sidetracks are also part of the
insurance package. Thomas Blunck, a member of
Munich Res Board of Management, said: The Kenyan
geothermal project will harness a form of renewable
energy where it is most promising and urgently needed.
The multi-well concept provides flexibility and security
to the developer and the investors.
With its new portfolio concept, Munich Re is covering
risk on a series of eight wells in a region of Kenya
characterized by high-enthalpy geothermal resources.
The exploration risk insurance covers the risk of
insufficient output due to lack of geothermal resources.
It is quite often a prerequisite for financing geothermal
projects.
The Akiira project includes the development and
installation of 140 MW in two stages of 70 MW each. It
is the first privately owned geothermal project in Kenya
www.geothermal-energy.org
5
Drilling rig at Akiira Project. Photo courtesy of
Munich RE.
to be developed in many years and will be Munich Res
first geothermal insurance project in Africa. The well-
sites are located in the East African Rift System, near
the Olkaria Geothermal Field where about 500 MW in
geothermal facilities are in operation. The region is
within the Great Rift Valley where a large amount of
geothermal potential often is found at the relatively
shallow depths of 1500 to 2500 meters. Geothermal
projects are often difficult to finance and the early
drilling phase is the most difficult one for contractors
and investorsif the targeted geothermal reservoir is
unable to produce enough output in steam or heat, the
project is usually discontinued and the investment lost.
Munich Re now covers such resource risks with its
Multi-Well Exploration Risk insurance.
AGL is jointly owned by Centum Investments
Company Limited, Frontier Investments Management,
and their development partners Marine Power
Generation Limited (MPG) and Ram Energy Inc. (REI).
While MPG is holding the geothermal license, US-based
REI has employees with significant geothermal and
power plant development experience.
In early August, the state Kenya Power & Lighting Ltd.
signed with MPG a power purchase agreement to buy
70 MW from the Akiira project, according to
Bloomberg.
Source: http://www.munichre.com/en/media-
relations/publications/company-news/2015/2015-07-
30-company-news/index.html
Almost Half of Electrical Energy From Geothermal
- Geothermal provided 46.4% of the 780.98 gigawatts
hour generated in June 2015, while hydro and thermal
contributed 38.1% and 14.8%, respectively.
Source: http://www.nasdaq.com/article/ge-to-build-
100-megawatt-wind-farm-in-kenya-20150729-
00946#ixzz3hhJG9kpi
October-December 2015
IGA News No. 101
AMERICAS
Caribbean: Agreement in St
Kitts, Other Well in
Montserrat
Feasibility Study and Agreement in St Kitts The
Ministry of Energy of the islands of St Kitts and Nevis
will conduct a feasibility study at St Kitts to establish the
potential of geothermal energy. After years of stops and
starts on its own geothermal project, Nevis has passed
the exploratory drilling stage and the government is in
the midst of revising the energy policy to meet the
current demands of the various stages of project. Our
new administration has taken a comprehensive
approach to facing the many challenges related to
energy, Minister Ian Liburd said, outlining the
governments approach to reducing the high cost of
electricity.
In further news, it was announced that the government
of St Kitts-Nevis and Teranov, a Guadeloupe-based
engineering company, will join efforts to establish a
public-private partnership with the ultimate goal of
generating electricity via a geothermal power plant. A
Memorandum of Understanding, committing the two
parties and governing the terms of this collaboration,
has been signed. This project is a direct result of the
energy policy defined by the Government of St Kitts-
Nevis and the green growth objectives promoted by
CARICOM at the regional level. The endeavor will help
to develop renewable energy and decrease dependency
on fossil fuels and greenhouse gas emissions in the
region. Under the agreement, Teranov will analyze the
geothermal resource in St Kitts using the methodology
currently implemented within the GEOTREF
consortium. The latter, led by Teranov, includes nine
internationally renowned French laboratories (CNRS,
ENS Mines de Paris, UAG, etc.) and three private
companies. It is sponsored by a French funding
program called Investments for the Future.
GEOTREF uses characterization and modeling tools
from the oil and gas upstream sector for its geothermal
explorations. The object is to achieve better reservoir
management and fewer geological risks.
The agreement signed by the parties provides for the
creation of a joint company in charge of resource
exploration and utilization and a roadmap of objectives.
The first phase, which began 1st October 2015, focuses
on geological, geochemical and geophysical surface
explorationcharacterizing commercially viable
geothermal resource.
Meantime, Premier of Nevis and Minister of Finance
Vance Amory said the administration is seeking to
develop a new cadre of skilled professionals to deal with
www.geothermal-energy.org
6
UPCOMING EVENTS
3rd Geothermal Congress and Exhibition of
Turkey
14-15 October 2015, Ankara, Turkey
14th World Wind Energy Conference and
Exhibition (WWEC 2015)
26-28 October 2015, Jerusalem, Israel
2015 German Geothermal Congress (Der
Geothermiekongress 2015)
2-4 November 2015, Essen, Germany
iPAD Rwanda Power and Infrastructure
Investment Forum
5-6 November 2015, Kigali, Rwanda
Contact: deanravell@spintelligent.com
Geothermal Congress for Latin America and
the Caribbean (GEOLAC 2015)
18-19 November 2015, Managua, Nicaragua
IGA Members have a 15% discount
37th New Zealand Geothermal Workshop
The Next 10,000 MW
18-20 November 2015, Taupo, New Zealand
41st Annual Stanford Geothermal Workshop
22-24 February 2016, Stanford, California, USA
12th Exhibition and Conference on Energy
Efficiency and Renewables (EE&RE 2016)
5-7 April 2016, Sofia, Bulgaria
3rd Iceland Geothermal Conference (IGC 2016)
26-29 April 2016, Reykjavik, Iceland
European Geothermal Congress (EGEC 2016)
19-24 September 2016, Strasbourg, France
6th African Rift Geothermal Conference
(ARGeo-C6)
31 Oct-6 Nov 2016, Asmara, Eritrea
Note: Please check the IGA website for more
events.
the energy revolution. According to Amory, he received
a recent offer of training for persons who would be
involved in the maintenance in the renewable energy
sector from the New Zealand High Commissioner. The
premier indicated that New Zealand has been utilizing
renewable energy from its geothermal resources for the
past 60 years and has developed a high level of expertise
in that area. He noted that the next step would involve
October-December 2015
 IGA News No. 101
careful selection of the persons who would benefit from
the training.
Sources: http://caribjournal.com/2015/07/17/st-kitts-
eyes-geothermal-energy/,
http://www.thinkgeoenergy.com/st-kitts-partners-with-
engineering-firm-teranov-on-geothermal-
development/?utm_source=ThinkGeoEnergy+List&ut
m_campaign=e86f049c21-
TGE_Newsletter_RSS1_12_2015&utm_medium=email
&utm_term=0_657e42f767-e86f049c21-415210497,
http://www.caribbeannewsnow.com/headline-
Geothermal-development-still-current%3B-progressing-
steadily,-says-Nevis-premier-27724.html
Third Exploration Well to Be Drilled in Montserrat
A third geothermal exploration well will be drilled in
early 2016 on the flank of the Soufriere Volcano at the
UK Caribbean island of Montserrat. A representative of
the UK Department for International Development
(DFID), speaking at a press conference, said around
US$6.5 million has been allocated for the project. The
Environmental Impact Assessment is set to be
completed shortly and the location and contract will be
signed by November 2015. Drilling is expected to start
in 2016. In 2013, two other wells were drilled and
assessed, concluding that the maximum yield would be
about 1.5 MW per well. The new well will be about 2500
meters in depth and have a final completion diameter of
8 inches. It is hoped that the three drilled wells will
provide enough steam to generate between 2-5 MW of
electricity for Montserrat.
Source: http://www.discovermni.com/2015/09/third-
geothermal-well-to-be-drilled-early-2016-says-dfid-rep/
Well Mon-01 (Photo by the Montserrat government).
Chile: The Cerro Pabelln
Project and Lessons from
Geothermal Development
Construction of Cerro Pabelln Geothermal Project
Begun - In early July, Enel Green Power SpA (EGP),
www.geothermal-energy.org
7
acting through its subsidiary Enel Green Power Chile
Ltda, signed with Empresa Nacional de Electricidad, SA
(Endesa Chile) a long-term (25 years) agreement for
supplying energy and selling green certificates that will
come from the first geothermal plant in Chile, as well as
from a wind farm and a solar-photovoltaic facility. The
three projects will have a combined installed capacity of
300 MW and represent an investment of around
US$800 million. The contract has an estimated total
value of up to US$3.5 billion along 25 years.
Initial activities in the site. Photo by EGP.
The geothermal plant is the 48MW Cerro Pabelln
project, located in the municipality of Ollage, in the
Province of Antofagasta on the Andean Plateau near the
Bolivian border. It will be the first geothermal plant in
the world built at 4,500 meters above sea level and is
scheduled to begin operations in the first quarter of
2017. The plant is owned by Geotrmica del Norte SA,
company controlled by Enel Green Power Chile Ltda.,
with a 51% stake and 49% stake by ENAP (Empresa
Nacional del Petrleo), the Chilean state company
operating in the hydrocarbon sector. The project
comprises two 24MW units, for a total gross installed
capacity of 48 MW. The construction started officially
on 14 July 2015. When fully operational, Cerro Pabelln
will generate nearly 340 GWh per year. According to
EGP, the construction of the power plant will require
about 320 million US dollars, wholly financed by the
group with its own resources.
Sources: https://www.enelgreenpower.com/en-
GB/media_investor/press_releases/release.aspx?iddoc
=1664068,
https://www.enel.com/eWCM/salastampa/comunicati
_eng/1664099-1_PDF-1.pdf,
http://www.enel.com/en-GB/media/news/egp-
record-breaking-geothermal-in-south-
america/p/090027d98258021a
Some Lessons from Geothermal Development -
Information sent by Marcelo J. Lippmann, IGAs Information
October-December 2015
IGA News No. 101 8

Committee. The paper Geothermal barriers, policies and generated 100% of the countrys power for 94
economics in Chile Lessons for the Andes, by Pablo consecutive days. The new period without the use of
Snchez-Alfaro and others, is scheduled to be published fossil fuels started on May 8 and ended on August 9,
in the November 2015 issue of Renewable and 2015. Earlier this year, from January 1 to March 16,
Sustainable Energy Reviews (Vol. 51, pp. 1390-1401). Costa Rica reached 75 days generating 100% of its
Paraphrasing what is said in the Conclusions, the power from renewables (see IGA News 99, p. 9). ICE
progress of geothermal exploration in Chile has been noted geothermal and hydropower plants were the main
strongly influenced by the existence or absence of energy sources used during the period, with the
public policies. According to the authors, to promote following average: hydropower, 77.6%; geothermal,
geothermal development, a clear policy framework has 12.3%; wind, 10% (and solar less than 0.1%). The 100%
to be developed. Based on the nature of geothermal renewables run came to an end on August 10, when the
systems they studied, there are three contrasting government had to fire up the Garabito thermal power
geothermal regions in Chile. Therefore, when planning plant, which uses bunker fuel, to generate 1% of the
exploration and exploitation strategies, the geological, energy required in the country. In 2015, Costa Rica has
technical and social differences for these regions should accumulated 188 days without resorting to conventional
be considered. sources of power to meet electricity demand. It was also
informed that by early September, the ICE had slashed
The main identified advantages of geothermal energy by
its use of fossil fuels for electric generation a remarkable
industry, government and academia are the sources
94 percent during the first eight months of this year
high capacity factor and its relative abundance in the
compared to the same period in 2014. Besides the
country. Both of these factors potentially augment
environmental benefits of burning less fuel oil, ICE has
energy security. The main perceived barriers are related
saved millions of dollars this year. The company spent
to (1) the absence of clear policies and qualified staff in
US$219 million to purchase fuel oil during the first eight
government institutions to manage geothermal
months of last year, compared to just US$5 million
development; (2) the lack of incentives for companies to
during the same period this year, a cost savings of $214
overcome financial risk in an unproven market; (3) the
million.
complicated local, provincial, and national regulations;
(4) the high costs of conducting exploration and Sources: http://renewables.seenews.com/news/costa-
development drilling, and (5) the high cost of rica-beats-own-record-relies-solely-on-renewables-for-
constructing transmission lines. At present conditions 94-days-488370#,
and without incentives, they estimate a geothermal base http://insidecostarica.com/2015/09/28/costa-ricas-ice-
case Levelized Costs of Energy (LCOE) in Chile is slashes-use-fossil-fuels-remarkable-94-percent/
around US$ 94.91/MWh, which would be near
competitive compared to the average contract price for
the main grid (US$ 82.6/MWh). The government
policies could have a significant impact in decreasing
such LCOE.
The authors propose several actions to overcome
barriers for different stakeholders in the Chilean case.
Some of the actions are fundamental to achieving future
projections for the development of geothermal energy
in Chile. Therefore, policy makers will need to
determine the value, in the nation's future energy mix,
of geothermal as a clean, secure and domestic energy
source. A follow-up for the article is being discussed
with representatives of the Chilean government, leading Well CHI3. Photo by W. Urbina published by El
to a more detailed economic analysis (including multi- Mundo.
stage LCOE-model and multiple policy options) further
exploring the various policy options and the impacts.
El Salvador: Well in
Chinameca and Ratification of
Costa Rica: New Record of
International Agreement
100% Renewable Energy
New Production Well in Chinameca - On early July
Generation the Comisin Hidroelctrica del Ro Lempa (CEL)
The Costa Rican Institute of Electricity (ICE) unveiled inaugurated the production well Chinameca 3 (CHI3) in
on early August that renewable energy sources have the Chinameca geothermal project, located in San

www.geothermal-energy.org October-December 2015

IGA News No. 101
Miguel province, El Salvador. Five geothermal wells
have been drilled in this field by the LaGeo, company,
now wholly owned by CEL, with a potential estimated
at 50 MW. LaGeo started the exploration surveys in
2004 and today the CELs president, David Lpez
Villafuerte, said they want to install a small 6MW power
plant by 2017 and a 50MW by 2019. To do that, CEL
expects to drill seven additional wells to reach a total of
12 production and injection wells, with temperatures
between 225 and 240C and depths of 1800-2000
meters.
CELs president said the total investment in Chinameca
would be around US$330 million in the upcoming years,
since each well is estimated at US$6-7 million. Lpez
Villafuerte said the Chinameca project is part of a
strategic plan embracing the development of the San
Vicente field and an extension of the operating
geothermal fields: Berln and Ahuachapn.
By late August, a new well, CHI 6A, was inaugurated.
Sources: http://elmundo.sv/cel-invertira-330-mills-en-
aumentar-geotermia/, http://www.cel.gob.sv/apertura-
de-pozo-en-campo-geotermico-chinameca-6/
Ratification of Agreement Regarding LaGeo -
Representatives of El Salvador and Enel Green Power
ratified an agreement allowing the government of El
Salvador to regain full control of the geothermal
company of LaGeo. Under the agreement, the
government will buy the 36.2% stake of the Italian
company for US$280 million. The contract was ratified
by representatives of both parties in Washington, DC
and will give the government of El Salvador full control
of LaGeo, one of the largest geothermal companies in
Central America.
LaGeo was a joint venture between Enel Green Power
and the state-owned Inversiones Energticas S.A. de
C.V. The ratification occurred at the International
Centre for the Settlement of Investment Disputes
(ICSID)with the participation of the Attorney
Generals Office, the Secretary for Legislative and Legal
Matters of the Presidency and the president of CEL
Group. The legal dispute about LaGeo started eight
years ago after the Salvadoran government disputed the
legality of the public-private contract between CEL and
Enel LaGeo. In December 2014, the agreement was
announced (see IGA News 98, p. 12).
Source: http://www.thinkgeoenergy.com/enel-green-
power-and-el-salvador-solve-legal-dispute-about-lageo/
Guatemala: Exploration in El
Ceibillo Project Restarted
US Geothermal Inc. announced Guatemalas Minister
of Energy and Mines has approved a modified schedule
for the El Ceibillo project, as part of an agreement
www.geothermal-energy.org
9
under which the company may build a 25MW
geothermal power plant. According to the modified
schedule, which was requested in late 2013, the first
phase of the project will become operational during the
second quarter of 2018. US Geothermal Guatemala S.A.
received geothermal energy rights to the concession in
April 2010. The company says it plans an initial
development of a 25MW flash-steam power plant at the
site, but will determine the exact size of the facility
following advancement of drilling and resource
delineation. The company has signed a binding
Memorandum of Understanding with a local power
broker establishing the framework for a 15-year contract
to purchase the electrical output of a plant with a
capacity between 25 MW and 50 MW.
Well EC-1 flowing. Photo by US Geothermal Inc.
El Ceibillo is located 14 km southwest of Guatemala
City. The concession contains 24,710 acres (10,000
hectares or 100 km2) in the center of the Aqua and
Pacaya twin volcano complex. US Geothermal said the
first activity would be the drilling of well EC-2, which
began in early August. Well EC-2 has a planned depth
of 1,968 feet (600 meters) and is meant to test a high-
temperature anomaly identified by a 2014 temperature-
gradient drilling program.
Sources: http://renewables.seenews.com/news/us-
geothermal-to-restart-drilling-at-guatemala-project-
485479,
http://www.usgeothermal.com/projects/4/El%20Ceibi
llo%20-%20Guatemala,
http://www.thinkgeoenergy.com/us-geothermal-starts-
drilling-2nd-well-in-guatemalan-project/
Mexico: First Geothermal
Permits and Concessions
Issued Under the New Law
Geothermal Round Zero Finished on Late July - On
July 22nd, at an official ceremony, the Energy Secretary
October-December 2015
IGA News No. 101
(SENER) awarded to the Comisin Federal de
Electricidad (CFE) Exploration Permits in 13
geothermal zones in Mexico. According to the
geothermal act (LEG: Ley de Energa Geotrmica), by
late January CFE asked SENER for the Exploration
Permits in those geothermal zones where this company
had already developed exploration surveys and studies,
making use of its preferential right to apply for permits
in what is called Round Zero referring to a similar
procedure followed in areas to be developed for oil
exploration. CFE asked also for the Exploitation
Concessions on the geothermal fields it is currently
operating (Cerro Prieto, Los Azufres, Los Humeros and
Las Tres Vrgenes), and on an additional field known as
Cerritos Colorados where CFE had drilled several
exploration and production wells in the eighties.
Through its clean energies department, SENER
reviewed CFEs applications and finally unveiled the
results on the July 22nd ceremony. SENER delivered
the titles for Exploitation Concessions in the five
geothermal fields just mentioned, and the titles for
Exploration Permits in the following geothermal zones:
Cerritos and Caldern-Cucapah in the state of Baja
California; Volcn Chichonal in Chiapas; San Bartolom
de los Baos in Guanajuato; La Soledad, Las Planillas
and San Marcos in Jalisco; Arar-Simirao, Lago de
Cuitzeo, Los Negritos and Ixtln de los Hervores in
Michoacn; El Molote in Nayarit; and Acoculco in
Puebla. The awarded surface in each zone is 150 km2
the top allowable by the lawexcept for a few zones
with surface areas between 80 and 100 km2. The
preliminary geothermal potential in those combined
zones is around 450 MW, which barely represents 3.3%
of the global geothermal potential in Mexico, according
to SENER.
Since that date, CFE has the exclusive right to continue
operating and developing the geothermal fields for 30
years and to continue exploratory activities for three
years in each of the 13 geothermal zones. However,
El Ceboruco Volcano, Nayarit.
www.geothermal-energy.org
10
CFE can decide to form a public-private association
with a private partner to develop any of the geothermal
fields and zones. SENER declared at the ceremony that
the rest of the countrythe 96.7% of the remaining
nominal potentialhas been opened for private
investment and development.
In mid-September, SENER unveiled it was conducting
public policy research on the best way to promote and
enhance the development of the geothermal industry in
Mexico, including the public bid procedures on other
known geothermal areas surveyed by CFE. In such a
case, the tenders containing the areas, terms and
conditions of the individual procedures shall be made
public through institutional channels and the Federal
Official Gazette.
It was later unveiled that SENER awarded the title of
Exploitation Concession for the geothermal field of
Domo San Pedro, Nayarit, to Grupo Dragn, the first
ever issued to a private company.
Sources:
http://www.energia.gob.mx/portal/Default_Intermedia
.aspx?id=3068,
http://sener.gob.mx/portal/Default_blt.aspx?id=3252,
http://www.cna.gob.mx/SalaPrensa.aspx?n1=18079&n
2=NotaP
First Geothermal Permit for MexxusRG -
MexxusRG, a Mexican company specialized in
geothermal development, obtained the first exploration
permit endorsed by SENER to a private company.
MexxusRG is a joint venture formed by Mexxus Drilling
International (Mexxus), a Mexican based drilling
company, and Reykjavik Geothermal (RG), an
Icelandic-based geothermal power development
company. The companies have been worked together
for several years in the state of Nayarit near the
Ceboruco Volcano completing scientific studies and
feasibility work. The Ceboruco project is expected to be
a 30MW geothermal power project with expansion
opportunities. It is expected
that MexxusRG will begin
exploratory drilling operations
in late 2015 with three
exploratory wells.
Chris McCormick of RG said,
MexxusRG is very pleased to
receive our geothermal
exploration permit for the
Ceboruco project under the
new energy reform laws We
are very pleased with the
progress made to date in
Mexico and we look forward
to continued progress on our
project as we believe this is
October-December 2015
IGA News No. 101
only the beginning for private geothermal development
in Mexico. We are excited to be part of the first step and
look forward to continued engagement with this
significant opportunity.
Source: http://www.thinkgeoenergy.com/mexxus-rg-
consortium-wins-1st-geothermal-permit-for-private-
enterprise-in-
mexico/?utm_source=ThinkGeoEnergy+List&utm_ca
mpaign=7da8f866e2-
TGE_Newsletter_RSS1_12_2015&utm_medium=email
&utm_term=0_657e42f767-7da8f866e2-415210497
Nicaragua: Legal Reform and
Drilling Agreement in San
Jacinto-Tizate
Reform to the Energy Stability Law - According to a
reform in the Energy Stability Law, passed on middle
September, the new contracts with renewable-energy
generators indicate the contract price will be valid
provided it is below that of thermal generation. The
preamble of the draft law, which has already been
approved, reads: ...The current initiative also includes
provision to establish that energy distributors
nationwide sell to the ENACAL (Nicaraguan Company
for Aqueducts and Sewer) the energy that is required, at
the lowest price of the generators. The Nicaraguan
Energy Institute (INE) will ensure the above provision
of law, based on the regulations approved for that
purpose by the MEM (Ministry of Energy and Mines).
It also provides that the MEM will approve and publish
the Reference Price Band for new contracts for
renewable generation. If because of the effects of lower
fuel prices for generation, the price of thermal
generation is less than the price of renewable
generation, new contracts to be signed with renewable
generators must be adjusted, so that the price contracted
with the generator will be valid provided it is below that
of thermal generation.
The proposed amendment to the Energy Stability Law
aims to ensure that the price contracted with renewable
generators is always less than the price of thermal power
generation.
Source:
http://www.centralamericadata.com/en/article/main/
Nicaragua_Reform_to_Laws_on_Electricity?u=aab8b44
88d77652c0c67fedfccf1ed2a&s=n&e=3&mid=[MESSA
GEID]
Drilling Agreement in San Jacinto-Tizate - Polaris
Energy Nicaragua S.A. (PENSA) has entered into a rig
services agreement with an entity controlled by Iceland
Drilling Company. The agreement is for drilling no less
than two new production wells and the work-over of
four existing injection wells, with the option for a third
www.geothermal-energy.org
11
new production well at the San Jacinto-Tizate Power
Plant, owned and operated by PENSA. The company
anticipates a spud date on its first production well in
early October 2015 and looks forward to working with
Iceland Drilling in a successful well drilling and work-
over program. Iceland Drilling will work closely with the
team from PENSA, led by the Drilling Manager.
Source: http://www.stockhouse.com/news/press-
releases/2015/09/08/polaris-infrastructure-announces-
signing-of-rig-services-contract#lCU5riAqj8IV6kku.99
Plant in San Jacinto. Photo by PowerEngineers.
US: New Plant, the Geysers
Project and Wildfire, Plans for
Salton Sea and Federal
Climate Policies
Don A. Campbell Phase 2 - Ormat Technologies, Inc.
announced that the second phase of its Don A.
Campbell geothermal power plant, located in Mineral
County, Nevada, began commercial operation on
September 17, 2015. The power plant is expected to
generate 19 MW (net) on a yearly average basis, above
the nominal target of 16.2 MW compromised in the
current Power Purchase Agreement (PPA) with the
Southern California Public Power Authority (SCPPA).
The Don A. Campbell Phase 2 plant reached
commercial operation 10 months after the project broke
ground and less than two years after we commenced
firm operation of the first phase in December 2013,
commented Isaac Angel, Ormats CEO. This second
phase has doubled the generating capacity of the Don.
A Campbell geothermal complex...
Source: http://www.ormat.com/news/latest-
items/don-campbell-phase-2-geothermal-power-plant-
nevada-begins-commercial-operation
Successful Tests of Three Wells of the WGP
Geysers Project - US Geothermal Inc. has successfully
completed a flow test program on the three largest
production wells at the Western GeoPower (WGP)
October-December 2015
IGA News No. 101
Geysers project in Northern California confirming the
existence of approximately 30 MW of steam. All three
wells produced superheated steam with estimated flow
rates at or above the rates measured when the wells
were first drilled during 2008 and 2009, confirming that
the wells are open and available for production. An
independent, world-recognized geothermal consulting
firm, GeothermEx Inc., designed and monitored the
flow tests and collected test data for analysis. The
reservoir report was delivered in late September, and
will be used to guide final development of the project.
With approximately 30 megawatts of steam drilled,
tested and ready for production at Geysers, we are
actively pursuing discussions in support of a power
purchase agreement for this, our most advanced-stage
development project said Dennis Gilles, CEO of US
Geothermal.
Source:
http://www.usgeothermal.com/projects/5/WGP%20
Geysers
Wildfire Reached The Geysers Geothermal Field -
By the middle of September, an explosive wildfire
started in Middletown, located about 15 km east of The
Geysers Geothermal Field. Middletown suffered a
devastating blow from the Valley fire. Entire city blocks
of homes and structures were burned to the ground.
The wild fires raging on have also affected five of the 14
geothermal power facilities operated by Calpine
Corporation. All 300 employees and around 150
contractors were safely evacuated and accounted for.
Ancillary structures (specifically, cooling towers,
communication equipment and local power distribution
lines) have been severely damaged, but there was no
damage to any of the main power houses (including
steam turbine and generator sets) at those sites. The fire
also damaged the insulation covering geothermal pipes.
The insulation was chewed up by flames at numerous
places. Some third-party transmission lines that transmit
A cooling tower in the Geysers field was damaged
by the Valley fire (Photo by (Kent Porter / Press
Democrat).
www.geothermal-energy.org
12
our power to the grid were also affected. Calpine Corp.
estimated the Valley fire will cost US$30-35 million,
including property damages and lost revenue due to
reductions in electric power generation, which will be
covered by its insurance program as the company said in
a statement. By late September all of the Calpines
employees had returned to work at its facilities that was
producing 540 MW, or about three-quarters of its
normal operating capacity of 725 MW. Facility repairs
should be completed within 6-12 months.
Sources: http://www.latimes.com/local/lanow/la-me-
ln-middletown-profile-20150913-story.html,
http://www.thinkgeoenergy.com/fires-raging-in-
california-damage-geothermal-plants-at-the-
geysers/?utm_source=ThinkGeoEnergy+List&utm_ca
mpaign=e86f049c21-
TGE_Newsletter_RSS1_12_2015&utm_medium=email
&utm_term=0_657e42f767-e86f049c21-415210497,
http://www.businesswire.com/news/home/201509140
06401/en/#.Vfmw0N-qqkp,
http://www.pressdemocrat.com/business/4543193-
181/calpine-estimates-fire-damage-in
Ambitious Plan for Geothermal in Salton Sea - The
Board of Directors of the Californias Imperial
Irrigation District (IID) has released a draft vision
document that sets the goal of 1,700 MW of new
geothermal plants by 2030and other specific actions
that will support its Salton Sea Restoration and
Renewable Energy Initiative. The initiative plans for
habitat construction before geothermal development
will be added as part of the final phase.
The document states, Geothermal energy is especially
important as California attempts to move to a carbon-
free economy. It is estimated that moving water
primarily through the Central Valley Project and the
State Water Projectconsumes approximately 19
percent of Californias total energy use. This demand
continues all day, year-round and so is ideally suited to a
renewable source like geothermal energy, which can
provide base load, while other renewable sources
provide peaking power during summer afternoons or at
other unpredictable times. The use of such renewable
power particularly if it substitutes for energy generated
from coalcould be financed through the proceeds
from the cap and trade program and/or by the sale of
carbon credits directly.
IID names short, medium and long-term goals for
construction of renewable energy facilities and
transmission: approximately 500 MW of solar and other
renewables and 520 MW of geothermal in the Short-
Term (2016-2017); approximately 1,500 MW of solar
and other renewables and 1,250 MW of geothermal in
the Medium-Term (2018-2023); and finally,
approximately 2,000 MW of solar and other renewables
October-December 2015
IGA News No. 101
and 1,700 MW of geothermal would be in process with
all completed by 2030.
The Salton Sea Restoration and Renewable Energy Initiative is
IID and Imperial Countys plan for ensuring water
supply reliability for California, protecting public health,
developing carbon-free energy, protecting and restoring
the seas ecosystem and providing for economic
growth, according to a press release.
IID and Imperial County believe that we must create
and maintain a smaller but sustainable Salton Sea,
Bruce Wilcox, IID environmental and Salton Sea
program manager said in the statement. A reconfigured
sea will limit fugitive dust emissions, preserve and create
avian habitat and expand economic opportunity for one
of Californias most economically distressed areas.
This solution will help to preserve the Quantification
Settlement Agreement and related water transfers
critical to Southern Californias water supply reliability,
said IID board President Stephen Benson. The time
for studies has passed. Now is the time for real action.
We urge the State of California to join us in
implementing the plan proposed in this framework, and
to begin immediately.
An implementing agreement between the state, IID and
the county is to be submitted to the State Water
Resources Control Board in late 2015 for approval.
CalEnergy geothermal plants are viewed from the
Red Hill Marina area at the Salton Sea. Photo via
IID.
Source:
https://geoenergist.wordpress.com/2015/07/29/leadin
g-news-u-s-could-be-moving-forward-on-geothermal-
energy/#2
President Obama Announces New Climate-change
Plan - President Barack Obama announced in early
August even steeper greenhouse gas cuts from U.S.
power plants than previously expected, a challenge to
the rest of the world to take serious action as a global
www.geothermal-energy.org
13
summit to finalize a landmark climate change treaty
approaches at the end of this year.
Last year, the Obama administration proposed the first
greenhouse gas limits on existing power plants in U.S.
history, triggering a yearlong review. These final changes
aim to address concerns raised by both the
environmentalists and the energy industry. Some
changes further cut the heat-trapping gases blamed for
global warming. Other changes delay implementation
and eliminate certain options that states could use to
show theyre cutting emissions, making it harder to
comply. Some states will be given a more lenient target,
while others will have tougher targets to meet.
Power plants will have to attain an even lower level of
carbon dioxide pollution to be in compliance. Obamas
proposal from last year set the target as a 30 percent cut,
nationwide, by 2030, compared to the levels in 2005.
His new plan calls for a 32 percent cut in the same time
period. Power plants account for roughly one-third of
all U.S. emissions, those of the heat-trapping gases
blamed for global warmingthe largest single source.
Obamas revised plan relies more heavily on renewable
energy sources like wind and solar replacing dirtier coal-
fired power plants. Obama now wants the U.S. to get 28
percent of its power from renewables by 2030,
compared to 22 percent in his earlier proposal.
The plan would boost efforts already underway in
California and other coastal states to increase the use of
renewable power. But in mostly Republican-led parts of
the country, still heavily reliant on coal, the rules would
force a major economic transition that many elected
officials pledge to resist.
According to the White House, the Clean Power Plan:
- Provides flexibility to states to choose how to meet
carbon standards.
- Gives more time for states paired with strong
incentives for early deployment of clean energy.
- Creates jobs and saves money for families and
businesses.
- Rewards states for early investment in clean energy,
focusing on low-income communities.
- Ensures grid reliability.
- Continues US leadership on climate change
- Sets state targets in a way that is fair and is directly
responsive to input from states, utilities, and
stakeholders.
- Maintains energy efficiency as key compliance tool.
- Requires states to engage with vulnerable populations.
- Includes a proposed federal implementation plan.
October-December 2015
IGA News No. 101 14

In his remarks, Obama raised the most frequently cited
arguments and aimed to shoot them down. There will
be critics, cynics who say it cannot be done, said
Obama in his address. They will claim it will cost you
money ... will kill jobs, and that its a war on coal that
will harm minority and low-income Americans by
eliminating their jobs. But climate changes hurts those
Americans the most, Obama said, citing statistics that
show black and Latino children are far more likely to
suffer from asthma exacerbated by poor air quality.
By early August, 16 US states opposed the Clean Power
Plan, requesting an immediate stay on a program the
opposition says unlawfully exploits Section 111(d) of
the Clean Air Act. The grievance addressed to EPA
Administrator Gina McCarthywas authored by West
Virginia Attorney General Patrick Morrisey and co-
signed by the States of Alabama, Arizona, Arkansas,
Indiana, Kentucky, Louisiana, Nebraska, Ohio,
Oklahoma, South Carolina, South Dakota, Utah,
Wisconsin and Wyoming.
Sources: http://www.latimes.com/nation/la-na-obama-
climate-rules-20150803-story.html,
http://www.pennenergy.com/articles/pennenergy/201
5/08/obama-sets-stricter-power-plant-cuts-in-global-
challenge.html?cmpid=EnlDailyPowerAugust42015&ei
d=291021978&bid=1141249,
https://www.whitehouse.gov/the-press-
office/2015/08/03/fact-sheet-president-obama-
announce-historic-carbon-pollution-standards,
http://www.hydroworld.com/articles/2015/08/16-
states-join-to-oppose-epa-s-clean-power-
plan.html?cmpid=EnlHydroAugust112015&eid=29102
1978&bid=1147233
Source: http://www.utilitydive.com/news/california-
lawmakers-pass-bill-mandating-50-renewables-by-
2030/405566/
ASIA/PACIFIC RIM
China: New Expectations for
Geothermal Development
After lying dormant for decades, since the first power
plant was installed in 1970, a series of central
government initiatives could potentially revive Chinas
geothermal industry and allow the country to harness its
vast, untapped heat reserves. Chinas Geothermal
Energy Data and Information System, due to be
established this year, could reinvigorate an industry that
has faced more difficulties and setbacks than more
visible, above-ground renewables. While it will probably
remain a small portion of Chinas overall energy mix for
the foreseeable future, the new data system, alongside
the National Energy Administrations forthcoming
Geothermal Development Plan, could help stimulate
growth in a sustainable resource with enormous
potential.

California Lawmakers Pass Bill Mandating 50%

Renewables by 2030 In mid-September, California
legislators passed a bill raising the states renewable-
energy portfolio standard to 50% by 2030. When signed
into law, it would immediately become one of the most
ambitious renewable mandates in the nation. SB 350,
which also calls for a doubling of efficiency goals for
buildings, originated from an executive order issued by
Californian Gov. Jerry Brown in January 2015. It now
heads to his desk to be signed into law. The bill initially
also called on the state to cut its petroleum use in half Image by China Economic Review.
by 2030, but those provisions were stripped from the
final version after an aggressive public relations China had 28 megawatts of geothermal capacity
campaign from the oil and auto industries. operating in 2014, but Beijing is hoping to reach its
Californias investor-owned utilities are well on their target of 100 megawatts of installed capacity by the end
way to meeting the states current 33% renewables by of 2015. With an estimated 1/6 of the worlds
the 2030 mandate. Utility officials and energy analysts geothermal resources and enormous energy
requirements, Beijing is looking to expand capacity
have told the companies are capable of meeting a 50%
throughout the country and build on a geothermal
renewables goal by 2030 despite the challenges.
program that has lain dormant since the seventies.

www.geothermal-energy.org October-December 2015

IGA News No. 101
While Tibet does possess the countrys most readily
accessible heat, viable geothermal resources can be
found anywhere, even in areas where surface-level
manifestation is weak or completely absent. Chinas
urgent need to diversify away from coal means that
geothermal stock is on the rise once again as renewables
gain greater importance. Last year, it established a
national forum to promote geothermal resource use,
and in March 2015 held its Fourth Annual Conference
for the Development and Utilization of Geothermal
Energy. The forthcoming Geothermal Development
Plan will also figure into the 2016-2020 five-year plan
and set out a clear series of goals and benchmarks for
geothermal development throughout the country.
With the government looking to strengthen emissions
regulations and further develop renewables, geothermal
energy could begin to look more attractive to investors
and consumers as wellhelping to address two major
issues policy makers will likely be wrestling with for
much of the rest of this century: energy consumption
and pollution. Relying on a sustainable, consistent, and
readily available resource such as geothermal energy can
help to alleviate the serious problems threatening the
environment, public health, and future growth
prospects.
Source: http://www.chinaeconomicreview.com/chinas-
long-dormant-geothermal-energy-sector-may-soon-wake
Indonesia: Geothermal
Projects and Permits, and a
Possible New State Company
Started 400 MW in New Projects - In early July the
President of Indonesia, Joko Widodo, inaugurated the
35MW fifth unit of the geothermal power plant (PLTP)
of Kamojang, which has an investment of US$104.3
million. The President Widodo was accompanied by the
President-Director of the state-owned oil and gas
company PT Pertamina, Swi Soetjipto, among other
high officers.
www.geothermal-energy.org
15
In the same ceremony, the President kicked off the
construction of other geothermal projects across the
country. They are the 3rd and 4th units of PLTP Ulubelu,
with 55MW each and investment of US$524.3 million,
in Tanggamus district, Province of Lampung; the 5 th
unit of PLTP Lahendong, with 40MW and cost of
US$262 million, in Minahasa District, Province of
North Sulawesi; the 1st unit of PLTP Karaha with
30MW and investment of US$187 million, in West Java;
the 1st and 2nd units of PLTP Lumut Balai, with a
combined capacity of 110MW and cost of US$683.5
million, in South Sumatra; the 1 st unit of PLTP Hulu
Lais, with 55MW and cost of US$248 million in
Bengkulu; and the 1st unit of PLTP Kerinci, also with
55MW in capacity and cost of US$116.2 million in
Jambi. These new projects in construction represent a
combined capacity of 400MW, equivalent to ~30% of
the current installed capacity in the country, with a
global investment of more than US$2 billion.
Sources:
http://lampung.antaranews.com/berita/282787/preside
nt-inaugurates-geothermal-power-
plants#.VZpD0Mo4vno.twitter,
http://www.thinkgeoenergy.com/several-geothermal-
projects-inagurated-in-
indonesia/?utm_source=ThinkGeoEnergy+List&utm_
campaign=c1dac0105e-
TGE_Newsletter_RSS1_12_2015&utm_medium=email
&utm_term=0_657e42f767-c1dac0105e-415210497
Development of the Rantau Dedap Project - The
French firm ENGIE, known up to the last year as GDF
Suez Group, is developing in Indonesia a geothermal
project on Rantau Dedap, located at 225 kilometers
from Palembang, capital of the Province of South
Sumatra. This concession was granted to the consortium
of ENGIE, PT Supreme Energy and Marubeni. The
targeted capacity of the project is 240MW, which is
expected to support geothermal power generation for
over 30 years. The first wells drilled in 2012 and 2013 by
the consortium have confirmed the existence of a high-
temperature reservoir (above 200C). The first phase of
geothermal resource exploitation began last year.
ENGIE is also developing two other geothermal
exploration projects in Indonesia: one in Muaralaboh in
Western Sumatra and one called the Rajabasa project,
on the Southern tip of the island.
Source: http://www.gdfsuez.com/en/news/engie-
geothermal-power-plant-indonesia/
Construction of the Muaralaboh Project Began - PT
Supreme Energy Muara Laboh, a joint venture of IPR-
GDF SUEZ Asia and Sumitomo Corporation, has
agreed to invest US$116.67 million in the construction
and development of Liki Pinangawan Muaralaboh
geothermal power plant, phase I, situated in Solok
Selatan Regency, Pauh Duo Sub-district, West Sumatera
October-December 2015
IGA News No. 101 16

Developing this clean-energy supply has the potential to

Well in Rantau Dedap. Photo by ENGIE.
Province, Indonesia. The total installed capacity of the
geothermal power plant will be 55 MW. The investment
per MW will be US$2.11 million. The construction of
the geothermal power plant has been started on July 05,
2015 and is expected to be completed in middle 2018.
The power generated from the geothermal power plant
will be sold to PT PLN (Persero), the Indonesian state-
owned electricity utility, under a 30 year power purchase
agreement.
Source:
http://www.renewablesbiz.com/article/15/09/pt-
supreme-energy-invest-usd11617-liki-pinangawan-
muaralaboh-geothermal-power-plant-phase-i-west-
sumatera-province
Collaboration with US on Geothermal Energy - On
early August, the United States and Indonesia
conducted a workshop with regulatory, financial, and
technical experts, as well as high-level government
officials, to advance geothermal development in
Indonesia. The United States and Indonesia agreed to
increase collaboration and explore opportunities over
the coming weeks and months to accelerate private
investment in geothermal energy.
The workshop included discussions of international best
practices for geothermal energy development and to
explore opportunities to streamline current policies,
rules, and regulations while preserving the integrity of
local concerns to protect the environment. Experts also
explored world-class approaches to reduce risks
associated with geothermal development, to increase the
efficiency of governmental processes and to create the
financial certainty necessary to increase overall levels of
geothermal energy investment.
support long-term, low-emission economic growth and
to help Indonesia meet its climate change target of a 26
percent reduction in greenhouse gas emissions by 2020,
or 41 percent reduction with international support,
compared to business-as-usual.
Source:
http://www.state.gov/r/pa/prs/ps/2015/08/245779.h
tm
Fifteen New Geothermal Permits Issued by the
Government - In late August, the Indonesian
Government licensed 15 domestic and foreign investors
to manage geothermal resources in the country as part
of efforts to develop power plants with a combined
capacity of 35,000 MW. After the licenses have been
issued, the energy and mineral resources minister must
check that they are making use of the licenses. Dont let
it (the project) come to a standstill after the licenses
have been issued, President Joko Jokowi Widodo said
on the sidelines of the 4th Indonesia IBTKE-Conex and
the 3rd Indonesia International Geothermal Convention
and Exhibition 2015. The president said geothermal
resources had the potential to generate 29,000 MW of
electricity. If all the investors realized their licenses, they
could produce 1,515 MW. The President said the
government would also provide improved services to
investors who had invested in new and renewable
energy.
Source:
http://www.antaranews.com/en/news/100069/govt-
issues-geothermal-management-permits
New State Geothermal Company? - In other news,
President Widodo emphasized that the government of
Indonesia needs to boost development of renewable
energy. By providing incentives, attractive tariffs and an
easier licensing and registration process, the government
can generate more investment in this sector. Recently,
the Indonesian Government set a target to raise the
share of renewable energy in the countrys total energy
mix to 19 percent by the year 2019, hence significantly
reducing the role of oil in the countrys energy mix.
Currently oil accounts for 47 percent of Indonesias
energy use and makes the country dangerously

GEOTHERMICS
International Journal of Geothermal Research and its
Applications
Published under the auspices of the International
Geothermal Association
Content of the latest issues:
http://www.elsevier.com/locate/geothermics

www.geothermal-energy.org October-December 2015

IGA News No. 101
susceptible to the effects of volatile global oil prices.
President Widodo also stated that, if necessary, the
government should create a new state-owned company
that manages the countrys geothermal power.
After that, the Energy and Mineral Resources Ministry
announced it is considering making the Pertamina
subsidiary that runs the geothermal business a separate
entity, so that the government will be able to exert direct
control over its expansion. The ministrys director
general for new, renewable energy and energy
conservation, Rida Mulyana, said separating Pertamina
Geothermal Energy (PGE) from the parent company
would enable the government to inject funds for
expansion. The country currently has one state-owned
enterprise in the geothermal sector, called Geodipa.
However, the company is currently embroiled in a legal
case, which hinders the government from interfering in
the process. PGE president director Irfan Zainuddin
said the governments plan to make his company a
separate entity remained unclear. PGE is already a
state-owned firm as it is a subsidiary of Pertamina,
which is fully owned by the government. We still dont
know whether the government will keep PGE like it is
now, a [geothermal power] producer, and make profits,
Irfan said.
Sources: http://www.indonesia-
investments.com/news/news-columns/geothermal-
power-development-indonesia-reducing-reliance-on-
fossil-fuels/item5854,
http://www.thejakartapost.com/news/2015/08/21/mi
nistry-mulls-spinning-pertamina-s-geothermal-
assets.html#sthash.kwmuT25J.dpuf
Japan: New 5MW Binary-Cycle
Power Plant Commissioned
Kyushu Electric held a completion ceremony in early
August at the Sugawara Binary Cycle Power Station, a
geothermal power generation facility in the town of
Kokonoe in Oita Prefecture. With an output of 5,000
kilowatts, it will produce approximately 30 GWh per
year, enough to power 8,000 typical homes.
The station operator is Kyuden Mirai Energy Co., a
subsidiary that works with renewable energy. Including
this facility, Kyushu Electric operates seven geothermal
power stations in Kyushu. One is the Hachoubaru
Geothermal Power Station, an 110MW facility in
Kokonoe, the largest of its kind in Japan. The power
companys total geothermal output is around 200MW,
accounting for 40 percent of all geothermal generation
in Japan.
At the ceremony, President Michiaki Uriu revealed that
by 2030, Kyushu Electric will roughly double its output
by adding 180MW. The company has plans for new
facilities in Minami-Aso in Kumamoto Prefecture and
www.geothermal-energy.org
17
Ibusuki in Kagoshima Prefecture. Still Uriu stated,
That will not be enough. We will add yet more.
Like other Japanese utilities, Kyushu Electric is obliged
to diversify its power sources in the aftermath of the
2011 nuclear disaster in Fukushima Prefecture.
Geothermal is a baseload power supply but the
technology has been slow to spread. Even at Kyushu
Electric, which leads other regional utilities in the
development of this technology, geothermal generation
only accounted for around one percent of the power
supply capacity this summer. One reason is resistance
from local hot spring inns and others who worry that
the source of the hot springs will be depleted.
The Sugawara plant uses a well, locally-owned by the
town of Kokonoe, to capture steam. In return, Kyushu
Electric pays the town about 100 million yen
(US$830,000) a year as a steam purchase charge. This
mechanism provides a large benefit for the local
community. We have to have a mutually beneficial
relationship with local communities, Uriu said. We
will use this as a model case and continue to develop
geothermal power generation into the future.
Source:
http://ajw.asahi.com/article/business/AJ201508300012
Malaysia: First Geothermal
Power Plant Signs PPA
Tawau Green Energy (TGE) has provided updates on
the geothermal power project in Malaysia. A PPA has
been signed with the state utility and the project is
approaching exploration drilling with an estimated 3 x
40 MWe gross progressive development. In an email to
the GEA, TGE representatives said they are looking for
interested partnering parties or investors for the project.
TGE further states: A renewable energy PPA has been
signed with the state electricity utility (Sabah Electricity
October-December 2015
IGA News No. 101
Sdn. Bhd.) for off-taking at MYR 0.45/kWh (around
US$ 0.11/kWh) for the first stage development of
30MWe (net)with a commissioning date of the end
2017. The project is now ready for exploratory drilling
and an impressive level of development infrastructure
and access roads have been installed, including two
multi-well pads, a cleared and leveled power plant site, a
site office complex, a site warehouse etc. From the
surface exploration data, the Tawau field looks to be a
moderate-temperature geothermal resource suitable for
3 stage (3 x 40MWe gross) progressive development. It
is likely that the resource will have pumped production
and will almost certainly need to have an organic
Rankine cycle plant.
Source: Geothermal Energy Weekly No. 29, 2015.
https://geoenergist.wordpress.com/
Iran: First Geothermal Power
Plant Being Built at Meshguin
Shahr
It was unveiled that work continues on the Meshguin
Shahr geothermal project, the first in the Middle East
(or Western Asia) region. As commented before (see
IGA News 98, p. 19), this project has seen 14 different
governments take and leave office, and finally seems to
be coming to fruition after 39 years. The plant is being
built at the foot of an inactive volcanic peak in
northwestern Meshguin Shahr, in the Ardabil province.
It is projected to come on stream in the next two years.
The 50MW project is in line with Irans bid to expand
its clean energy mix, today dominated by fossil fuels.
Eleven wells have been drilled, seven of which have
reached ground reserves, Irans Energy Minister
Hamid Chitchian said in mid-August.
Besides power generation, the geothermal energy will
be used for heating during the regions harsh winters
and for cooling in the summer, he said. Irans nominal
power generation capacity stands at about 74,000
megawatts. The country will add another 2,000
megawatts to its national grid next year, the minister
(Photo from http://petroenergy.com.ph/wp-content/uploads/2014/11/Maibarara.png)
www.geothermal-energy.org
18
added. The facility is being built 3,000 meters above sea
level, near the Sabalan mountain range which is famous
for its mineral water. Millions of tourists each year are
attracted to the hot springs, which are believed to have
healing properties.
Source:
http://www.presstv.ir/Detail/2015/08/26/426407/ira
n-power-electricity-geothermal-energy
Philippines: Additional Steam,
Possible Inclusion of
Geothermal in FiT, Award to
IGAs BoD Member and EPC
for New Plant in Bac-Man
More Steam Reserves - The Maibarara geothermal
field in Batangas province has additional steam reserves
equivalent to 26 megawatts of electricity, according to a
study conducted by New Zealand company, Sinclair
Knight Merz (SKM), part of the Jacobs Engineering
Group. Maibarara Geothermal Inc. (MGI) is currently
expanding the existing Maibarara geothermal power
project by 10 MW, raising the total output to 30 MW on
completion in 2017. Maibarara tapped SKM to conduct
a comprehensive third-party technical review of the
geothermal field, which showed another potential of 10
MW to 26 MW of power output south and outside of
the current area of development. SKMs review included
analysis of the resource assessment performed in-house,
as well as a separate SKM reserve estimation and
numerical modeling of the Maibarara reserves. MGI said
its own simulation indicated proven reserves of 27.8
MW for 25 years, while SKM calculated the reserves at
44 MW.
MGI is a joint-venture owned by PetroGreen Energy
Inc. (65%), Trans-Asia Oil & Energy Development
Corp. (25%), and PNOC Renewables Corp. (10%). It
currently operates an integrated 20-MW geothermal
power facility in Sto. Tomas, Batangas, which started
commercial operations in February 8, 2014. The
October-December 2015
IGA News No. 101
company started its expansion project in the second half
of 2014 by drilling and successfully completing two new
wells (MB15RD and MB16D).
Source:
http://manilastandardtoday.com/2015/08/16/bigger-
geothermal-field-bared/
Possible Inclusion of Geothermal Projects in FiT
Scheme - A recently-issued circular of the Philippines
Department of Energy (DOE) has provided an opening
for renewable energy (RE) developers to ask that
conventional geothermal and big hydro developments
be included under the feed-in-tariff (FiT) incentive
scheme. The DOE circular (DC2015-07-0014) sets a
policy tone on the wholistic implementation of the FiT
system so the country can maintain a 30-percent share
of renewable energy in its power mix.
The Energy Secretary officer-in-charge, Zenaida Y.
Monsada, explained that the FiT incentive for RE is
really to encourage investors, so we will have to see if it
is necessary, well have to evaluate. We have been doing
things on the policy sphere on a piecemeal basis because
what we see as necessary as of that time was the FiT
that is given.
There are some opinions that policy proposition on
FiT-underpinned geothermal and big-ticket hydro
projects could be in contravention of the Renewable
Energy Act and its implementing rules and regulations.
Under the law, it shall only be the emerging RE
technologies that shall be incentivized with
correspondingly-approved FiTs.
Monsada thus qualified that the policy decision shall
still depend on what the RE Law provides. It will have
to go through comprehensive discussions and
consultations before any decision will be arrived at. She
added that the NREB will be a major part of the
discussions and from what they can come up with,
recommendations will eventually be lodged with the
energy department.
The basis of the 30-percent share of RE in the power
mix, Monsada noted previously, shall be the installed
capacities of power facilities. Referencing on that, it
shall entail up to 5,000 megawatts or higher that could
be integrated in the FiT system. It was not clear under
the DOE circular if its proposed wholistic FiT
application will just cover emerging technologies or that
even the traditional ones shall be part of it.
Source: http://www.mb.com.ph/re-developers-explore-
fit-inclusion-of-big-hydro-and-geothermal-
plants/#xRf6brBRrsurj3mx.99
Richard Tantoco, NZ ASEAN Awardee - New
Zealands Economic Development Minister, Steven
Joyce, congratulated the five Filipinos receiving the NZ
ASEAN 40th awards at a ceremony in Manila in early
www.geothermal-energy.org
19
August. This year, New Zealand is commemorating 40
years of ties with ASEAN and the Philippines was a
founding member of the group. In 2016, New Zealand
and the Philippines will celebrate 50 years of diplomatic
relations.
One of the five award recipients is Richard B. Tantoco,
President and Chief Operating Officer of the Energy
Development Corporation (EDC), the largest Philippine
generator of electricity from geothermal energy. Mr
Tantoco is a strong
champion of the
New Zealand -
Philippines bilateral
business relationship,
and a member of the
IGA Board of
Directors. EDC
works with a range
of companies and
specialists from the
New Zealand
geothermal sector. In
the 1970s, the New
Zealand Aid
Program supported
the Philippines while
it developed its
geothermal energy industry. The relationships
established then have remained strong; EDC continues
sending its staff to the geothermal course at IESE, at
Auckland University, for professional development.
Source: http://www.beehive.govt.nz/release/joyce-
congratulates-asean-40-award-winners-philippines
New 31MW Plant to Be Built in Bac-Man - In other
news, EDC announced it has signed a design and
equipment supply contract with Hyundai Engineering
Co., Ltd. (HEC) and a construction services contract
with Galing Power & Energy Construction Co. Inc.,
both dated September 15, 2015, for the engineering,
procurement and construction of the 31MW Bac-Man 3
geothermal power plant. The Bac-Man 3 project has an
estimated project cost of Php7.6 billion (US$163
million) and is targeted to be completed and operational
by the last quarter of 2017. Once operational, Bac-Man
3 project will augment the power generating capacity of
the Luzon grid and will reduce greenhouse gas
emissions by about 270 kilotons of CO2 annuallyif a
similar capacity of fossil-fired power plant were to be
built, according to an EDC press release.
Source: http://piensageotermia.com/edc-firma-
contrato-epc-para-el-proyecto-bac-man-3-
filipinas/?utm_source=Lista+de+Piensa+en+Geotermi
a&utm_campaign=8a849eeaef-
RSS_EMAIL_CAMPAIGN&utm_medium=email&ut
m_term=0_a42515e818-8a849eeaef-413841433
October-December 2015
IGA News No. 101
Taiwan: Activities in Two
Geothermal Projects
Project Related to Tatun Volcano Group - The
Taiwans Ministry of Economic Affairs (MOEA) said
on August it will begin developing a geothermal project
near the Tatun Volcano Group. The project is a power
plant of 7MW in New Taipeis Jinshan District. It could
generate up to 68.5 million kWh of electricity per year.
As part of the projects inaugual ceremony, test wells
were drilled as a demonstration of the endeavors
efforts, said Lin Chuan-neng, director general of the
MOEAs Bureau of Energy (BOE).
After two years of surveys and analyses of geothermal
data, experts decided to locate the project in the
mountainous Jinshan District, a part of the Tatun
Volcano Group. Using conventional drilling measures,
the wells are expected to produce geothermal fluids at
293C. Based on preliminary assessments by the BOE,
the power to be generated by the project would equal
the entire energy consumption in New Taipei Citys
Jinshan and Wanli districts. The project would reduce
42,677 metric tons of CO2 emissions every year.
Source:
http://focustaiwan.tw/news/aeco/201508120021.aspx
Project in Yilan County - In the meantime, a different
geothermal project in Yilan County, expected to
generate up to 100 MW of electricity, was referred to
the environmental impact assessment (EIA) grand
assembly to decide whether a fourth meeting or a
second-phase review is needed. With the wells
burrowing deep past layers of rock and extending into
the sea floor, the EIA committee expressed concern
over active fault lines that lie at the proposed drilling
site. It said the developer has not thoroughly surveyed
the geological structure of the area or assessed the threat
that earthquakes or other natural disasters could pose to
the facility. Fearing that such deep drilling might induce
shallow earthquakes and cause pollution to the
stratigraphic system and underground water, the
www.geothermal-energy.org
20
committee referred the project to further review by the
EIA grand assembly. The committee also demanded
that the developer conduct further seismic and
geological studies and test drilling, map out an
environmentally friendly withdrawal mechanism should
the project be terminated and engage in comprehensive
communication with residents.
Source:
http://www.taipeitimes.com/News/taiwan/archives/2
015/08/22/2003625928/1
Vietnam: Large Geothermal
Project in Planning Stage
JAKS Resources Berhad, an investment holding
company based in Malaysia, plans project financing of
US$1,402.5 million for the construction and
development of a geothermal power plant in Hai Duong
province, located in northern Vietnam and relatively
close to the capital, Hanoi. The total cost of the power
project is estimated to be US$1,870 million. The total
installed capacity of the project will be 1,200 MW and
consist of two 600 MW units. The investment per MW
will be US$1.56 million, which looks too low. The
project will be developed in two phases of 600 MW
each. The electricity generated from the power project
will be sold to Vietnam Electricity, a state-owned
national utility company, under a 25-year power
purchase agreement. The construction of the project
will be carried out by JAKS Hai Duong Power
Company Ltd, a 50/50 joint venture of JAKS Resources
Berhad and China Power Engineering Consulting
Group Co Ltd. The power plant will be operated by
JAKS Hai Duong Power for a period of 25 years under
a build-operate-transfer (BOT) basis.
Source: http://www.4-traders.com/JAKS-
RESOURCES-BERHAD-6497394/news/JAKS-
Resources-Berhad--Plans-Project-Financing-of-USD14-
Billion-for-Geothermal-Power-Plant-in-Hai-20653463/
EUROPE
Hungary: EGS Project, New
Well in the Gyr Project, and
the Mayors Geothermal Club
Grant to Develop EGS Project - The European
Unions NER300 program, which supports green and
sustainable energy development and use in Europe, has
awarded the Icelandic consulting firm Mannvit and its
collaborators, the Hungarian Ministry of Economy and
the company EU-FIRE kft, a grant to develop an
Enhanced Geothermal System (EGS) for production of
electricity in Southeast Hungary, at a still-unknown
location. EGS utilizes heat in deep rocks by injecting
October-December 2015
IGA News No. 101 21

cold water down to the rock and pumping it back up works, the heat exchangers, pumps and the connecting
after it is heated. The heated water is used to produce pipeline constructions have been installed and the
electricity and, if feasible, in district heating systems. It technology installation at the Heat Distribution Center
uses the hot liquid as efficiently as possible before re- of Bny will be finished next weekwhile electrical
injecting it, thus creating a cycle for extracting the assembly and control technology works continue.
thermal energy.
Source: http://pannergy.com/wp-
The EUs potential contribution to the project is 40% of content/uploads/2015/09/PE_BON-PE-
its total cost, which is estimated to be nearly 120 02_20150917.final-ENG.pdf
million. The role of the company in this project will be
Mayors Geothermal Club - Mayors Geothermal Club
an EPCM (Engineering, Procurement, Construction and
is an initiative to facilitate synergies and cooperation
Management) consultancy, which includes planning and
between the key stakeholders of the European
preparation, project management, engineering,
geothermal market and will provide primarily European
procurement, construction management and drilling
municipalities with deep geothermal potentials with an
supervision. In recent years Mannvit has collaborated
appropriate framework where all issues related to the
with companies on the multiple-utilization of
utilization can be openly discussed. The inaugural
geothermal energy for heating buildings, industry, and
conference of the Mayors Geothermal Club is a two-
electrical production in municipalities and governments
day conference and matchmaking event for
in states in Central and Eastern Europe. Mannvit was
municipalities and organizations interested in identifying
established in 1963 and is wholly-owned by its
and exploring opportunities for collaboration to
employees. Its headquarters are at Kpavogur, Iceland,
improve their potentials to implement geothermal-based
with overseas offices in Norway, the UK, Germany,
district heating systems. The conference will be held on
Chile and Hungary.
8-9 October in Budapest.
Source: http://www.mannvit.com/projects/egs-project-
Source:
in-hungary/
http://www.geothermalcommunities.eu/news/7
Fourth Well Drilled in the Gyr Geothermal Project
- The Geothermal Project of Gyr arrived at the final Germany: Construction of the
phase with the successful drilling of well BON-PE-02,
started in Bny last July. It is a directional injection well, First Geothermal Heat-and-
finished at a depth of 2,450 meters, down to the Triassic power Plant Started in Hessen
dolomitic aquifers. After the completion of drilling
operations, the drilling mud was replaced by water and Last July, a drilling permit was granted to the regional
the well was cleaned out. In preliminary tests, the well utility berlandwerk Gross-Gerau GmbH to drill two
self-flowed and produced water around 120130 liters exploration wells and to perform well tests for a deep
per second at 100C. Long-term tests were begun in the geothermal plant near Trebur, Germany. The site is
located at the northern end of the Upper Rhine Graben,
middle of September. Balazs Bokorovics, Chairman of
some 20 km SW of Frankfurt International Airport. In a
the Board of Directors of PannErgy, said, The
press release by WFG and Bundesverband Geothermie,
construction of the surface facilities progressed on
the president, Dr. Erwin Knapek, requests the Hessen
schedule. Both the final structural construction works of
state government to tie deep geothermal energy more
the Heat Distribution Center of Bny and the re-
closely into their energy transition (Energiewende)
cultivation have started. As part of the technological
strategy: In particular
for the Hessian energy
transition, geothermal
energy is a crucial
element because it
supplies heat, power and
cold locally and precisely
usable. Geothermal
energy stands for the
future of energy
production, providing a
secure energy supply
around the clock. The
Upper Rhine Graben is
Drilling rig in the Gyr project (photo by PannErgy). an ideal location for deep
geothermal projects.

www.geothermal-energy.org October-December 2015

IGA News No. 101
The berlandwerk Gross-Gerau GmbH, with its deep
geothermal project, supports the district of Gross-
Gerau in its vision to cover about 30% of the electric
power demand from renewable sources by 2020.
Inauguration of the geothermal plant producing 3MW
of power and 6MW heat is foreseen for 2017.
Source: EGEC Newsletter July/August 2015, p. 4.
Italy: New Geothermal
Drilling Installation and the
Conclusion of Hybrid Plant
New Geothermal Drilling Installation in Larderello
- The Italian firm, Enel Green Power (EGP), has
acquired a new drilling system, called HH300, which
brings certain changes to traditional methods. It was
developed by EGP with the manufacturer and is based
on previous experiences. The HH300 rig system was
officially unveiled in late June in Larderello.
The benefits of this latest generation hydraulic
installation, which is highly automated, include certain
innovations for operator safety by reducing the need for
interaction between transport personnel and the
equipment during drilling. Other innovations are related
to operational efficiency and safety.
A new drawing system, the possibility of using longer
drilling pipes (reducing maneuver time and supply
costs), a new system for managing pipe storage and the
addition of new service platforms are just a few of the
major changes to be found at the latest drilling
installation. The HH300 system has 4MW in installed
power and 272 tons of hoisting capacity, ideal for safely
reaching objectives as deep as 5000 m with maximum-
operational efficiency.
This represents an important technological innovation
and a model that can be reproduced to open up new
international possibilities. In fact the same HH type
installation will be used by EGP for its drilling
operations in Chile.
Source: http://www.enelgreenpower.com/en-
GB/events_news/news/release.aspx?iddoc=1664002
Concludes Construction of the First Geothermal-
Biomass Hybrid Project - In early 2015, it was
announced that Enel Green Power (EGP) had started
construction of the Cornia 2 geothermal power plant in
the town of Castelnuovo Val di Cecina, in Tuscany (see
IGA News 98, p. 22). This is reputed as the first plant in
the world to use biomass to add heat to geothermal
steam to increase the energy efficiency and electrical
output of the geothermal cycle. However, Ian Crawford,
Editor of the GRC Bulletin, informed about a hybrid
biomass-geothermal power plant installed in Lassen
County, California, in 1989 that would be the very first
www.geothermal-energy.org
22
in its type. Anyway, in late July, EGP said it has
completed constructing the 5MW power plant. The new
facility was built next to the existing 13MW Cornia 2
geothermal power plant and is expected to increase the
latters output by more than 30 GWh annually. EGP has
invested over EUR 15 million (US$ 16.6 million) in the
biomass project. The newly-installed power station uses
virgin forest biomass to heat steam from an initial
temperature of 150-160C to 370-380C. This boosts
the net electricity-production capacity because of the
increased enthalpy of the steam and the improved
efficiency of the cycle due to lower humidity in the
generation phase, EGP explained.
Cornia 2 power plant.
EGP said the new plant is technologically innovative
because it has close to zero impact on the environment,
enhances an existing industrial plant and maintains the
total renewability of both the resource and the cycle,
combining two renewable resources in a system with the
potential for future international development.
According to EGP, other benefits include the efficient
use of agricultural and agro-industrial by-products, the
optimal maintenance of forest resources with the
consequent reduction in hydrogeological risk, the
sustainable development of energy crops and the
production of significant levels of cogenerated heat.
Source: GRC Bulletin, Vol. 44, No. 5, p. 25,
https://www.enelgreenpower.com/en-
GB/media_investor/press_releases/release.aspx?iddoc
=1664165
Turkey: New Plants in
Operation and Recent
Developments in Exploration
and Testing
575 MW of Geothermal Installed Capacity in the
Country The Turkey firm Zorlu Enerji announced
the completion of phase I of its Alasehir II geothermal
project. The project is located in the province of Manisa
October-December 2015
IGA News No. 101 23

in the Western part of Turkey. It is a hybrid flash-binary they will continue to pioneer foreign direct investment
plant optimized for high non-condensing gas content in inflows into Turkey and to build projects that contribute
the brine. Zorlu Enerji Electricity Generation is the 100 to the countrys energy security, adding that we plan
percent shareholder and has invested around US$153 an investment worth US$65 million in a geothermal
million into this project with a combined capacity of power plant project we are conducting in Kuyucak,
33.7 MW. After completing reliability test of the double Aydin.
flash turbine by Toshiba, Zorlu has brought it online to
Source:
the national grid. The combined flash-binary plant will
http://www.dailysabah.com/energy/2015/07/27/turca
have a total installed capacity of 45 MW when
s-to-produce-electricity-from-geothermal-sources
completed. It is expected that the 11.27 MW binary unit
for the plant will be commissioned in the coming Testing Program in Kocakoy Exceeds Expectations
months. - After completing an extensive testing program,
including injectivity and a multiple-days pump test, the
Zorlu Enerji is currently expanding its Kizildere I and II
KOC-02 well has proved to be even a better
geothermal plants with a total installed capacity of 95
commercial discovery than initially expected. The well
MW. Commissioning for Phase I started in May and a
was drilled to a depth of 2,542 m, encountering over
detailed study by Turkeys Department of Energy
400 m of marble reservoir section. The well was drilled
allowed commercial production.
by Transmark Services with its Gerry II rig. Global best
Turkey has been one of the key drivers for geothermal practices were used to limit damage to reservoir
development worldwide. From an installed capacity of permeability during drilling. These techniques have
250 MW less than five years ago, the total geothermal delivered very strong flow rates during testing, with
capacity is currently 575 MW as reported by Tevfik wellhead temperatures more than capable of supporting
Kaya from Schulmberger Turkey in one of the the economics needed for power plant development.
presentations in the international session of the 2015 With flows over 100 l/s and temperatures in excess of
GRC Annual Meeting. With that, Turkey has placed 120C, Transmark will begin developing the area by
itself as the ninth country with the highest geothermal drilling well KOC-03. KOC-03 is planned to reach the
electric power. It is expected to reach an installed same depths and aims to hit the same carbonate
capacity of 1,000 MW by 2023. reservoir. Transmark will start constructing the first
Sources: http://www.thinkgeoenergy.com/zorlu-enerji-
adds-33-mw-to-the-grid-at-its-alasehir-ii-project-in-
turkey/?utm_source=ThinkGeoEnergy+List&utm_cam
paign=faa2bb1476-
TGE_Newsletter_RSS1_12_2015&utm_medium=email
&utm_term=0_657e42f767-faa2bb1476-415210497,
http://www.thinkgeoenergy.com/turkey-moves-up-to-
no-9-in-global-geothermal-power-
rankings/?utm_source=ThinkGeoEnergy+List&utm_c
ampaign=faa2bb1476-
TGE_Newsletter_RSS1_12_2015&utm_medium=email
&utm_term=0_657e42f767-faa2bb1476-415210497
Agreement to Develop Geothermal Resources - The
Turkish firm based in Istanbul, Turcas Petrol, aims to
start producing electricity from geothermal energy in
2017 as part of the companys joint long-term
transformation strategy with Azerbaijans
Azalternativenerji to invest in renewable energy both in
Turkey and Azerbaijan. A statement released by Turcas
Petrol in late July said the company signed a good-will
agreement with Azalternativenerji, which operates
within the body of Azerbaijans State Agency on
Alternative and Renewable Energy Sources (SAARES),
with the objective of cooperating and developing joint Pump test at KOC-02 well. Photo by
projects to invest in power plants based on solar and Transmark Renewables.
wind energy and geothermal resources in Turkey and
Azerbaijan. The agreement will be valid for three years power production module and further develop the area
as of the date of signature. The Turkish company said with a continuous drilling program. The initial
www.geothermal-energy.org October-December 2015
IGA News No. 101
discussions with the ORC power plant manufacturers
have begun.
Source: http://www.transmark-
renewables.com/Message.aspx?message=36
OCEANIA
New Zealand: Agreement,
New Project, Industry
Changes, Share of Geothermal
in 2014
Geothermal MOU Signed with Japan - The New
Zealand Energy and Resources Minister, Simon Bridges,
said a new Memorandum of Understanding (MOU)
signed by mid-July will strengthen the strategic
partnership in renewable energy research and
development between New Zealand and Japan. Bridges
witnessed the signing of the MOU between New
Zealands Crown Research Institute GNS Science and
the Japan Oil, Gas and Metals National Corporation
(JOGMEC) during his visit to Tokyo earlier this year.
The MOU establishes the basis for cooperation in
geothermal energy. The agreement includes technical
cooperation in the evaluation and mitigation of
environmental impacts of geothermal energy
www.geothermal-energy.org
24
development, development of survey methodologies
over large spatial areas, and methods for sustainable
management of geothermal reservoirs.
Globally, geothermal energy is experiencing a
renaissance, and Im pleased that our two countries can
share their pioneering experience characterized by
innovative, sustainable and respectful management of
geothermal resources At nearly 80 percent, New
Zealands share of renewable electricity generation in
2014 was the fourth highest in the world. Geothermal
generation has more than doubled over the past decade
and is a true New Zealand success story, Bridges said.
Our renewable advantage in New Zealand, including
the continuing growth of world-class geothermal energy,
presents real opportunities to leverage our expertise and
experience overseas for economic advantage.
The Japanese want to tap into New Zealand expertise as
they seek to raise their geothermal output, GNS Science
said. New Zealand is the worlds fifth largest geothermal
producer with more than 1,000 MW of capacity, while
Japan is the ninth largest with 540 MW. GNS Science
said it has provided specialist services to the Japanese
geothermal industry for many years.
Source:
http://www.scoop.co.nz/stories/PA1507/S00268/nz-
japan-commitment-to-geothermal-energy.htm,
http://renewables.seenews.com/news/view?url=48488
2
Consent for Two 25MW Plants in Ngawha - The
company Top Energy is applying for a raft of consents
from the Northland Regional and Far North District
councils for its plans to build two new geothermal
power plants at Ngawha, east of Kaikohe. Each new
plant would generate 25 megawatts, as much as the two
existing plants combined. The total 75 MW produced
would make the Far North an electricity exporter
because, even at peak demand, the district consumes
just 70 MW. Top Energy is likely to use Ormat, the
company that designed the first two plants, though that
will depend on price because it is no longer the only
producer of power plants suitable for Ngawhas
conditions. The commissioners conducting the hearing
are expected to take a month to reach a decision. If the
consents are granted they can be appealed to the
Environment Court.
Top Energy chief executive Russell Shaw said the
proposal could make the Far North self-reliant in
electricity. That would mean not only a more reliable
power supply, because the district would not depend on
transmission across Auckland from the Waikato, but it
could also save Far North households money. Currently
Top Energy is fighting a proposal by the Electricity
Authority to allow Transpower, which operates the
national grid, to bump up lines charges in Northland by
October-December 2015
IGA News No. 101
Visitors on a guided tour check out one of Top
Energy's two geothermal power plants already
operating at Ngawha. (Photo by Peter de Graff,
taken from The Northern Advocate site.)
close to NZ$300, or 172 per cent, per household. At the
same time, big users like aluminum smelters would see
lines charges drop by as much as $50 million a year.
However, Shaw said if the Far North exported rather
than imported power, the generator in this case Top
Energywould have to pay the increased transmission
charges, not the consumer. Shaw said care had been
taken in planning the expansion to ensure temperatures
and pressures at Ngawhas thermal pools would be
maintained. To date the pools, which are culturally and
historically significant, had not been affected. Even if
the expansion went ahead, modeling showed just one
percent of the available energy would be used.
It was disclosed later that Top Energy signed a
cooperation and development agreement with the
Ngawha Marae Trustee Komiti. Both parties hope the
agreement will lead to cultural and commercial
development at and around the geothermal field near
Kaikohe. This agreement addresses concerns the Komiti
had about the expansion project of Ngawha but also
sets the foundations for a long-term relationship
between the parties.
Source: http://www.nzherald.co.nz/northern-
advocate/news/article.cfm?c_id=1503450&objectid=11
488517,
http://www.scoop.co.nz/stories/BU1
508/S00143/ngawha-marae-komiti-
and-top-energy-sign-ngawha-deal.htm
Contact Energy Becomes an
Independent Company from Origin
- Major New Zealand geothermal
energy producer Contact Energy will
become an independently governed
company for the first time since
privatization in 1999, after cornerstone
shareholder Origin Energy, based in
Sydney, agreed to sell its 53.1 percent
stake to a broad range of Australian,
New Zealand and international equity
www.geothermal-energy.org
25
market investors. The transactions end Contacts 16
years under the effective control of a foreign-owned
majority shareholder following the original sale of a 40
percent shareholding to Edison Mission Energy of
California in 1999, in the first partial privatization of a
state-owned electricity company. Contact will also seek a
dual-listing on the Australian Stock Exchange, which it
abandoned in the mid-2000s. Origin bought EMEs
stake, which had risen to 50 percent, in 2003 and made
an abortive attempt to merge the two companies in
2006 a move fiercely resisted by New Zealand
shareholders who saw it as a takeover by stealth. EME
also attempted a full takeover in 2001, which also failed.
Contact Energy runs the 166 MW Te Mihi, the 132 MW
Wairakei, the 38 MW Poihipi, the 28 MW Te Huka and
the 65 MW Ohaaki geothermal power stations.
Source:
http://www.scoop.co.nz/stories/BU1508/S00078/orig
in-exits-contact-for-18b-ending-foreign-control-era.htm
Geothermal Was the Main Renewable Supplier of
Primary Energy in 2014 - The proportion of
renewable energy in New Zealands total energy supply
reached a record high last year, a government report
said. Renewable energy made up 39.5 percent of New
Zealands total primary energy supply, up 1.3 percent
from the previous year, said the Ministry of Business,
Innovation and Employment (MBIE) manager of
energy and building trends, Bryan Field, on releasing the
Energy in New Zealand 2015 report. This is the
highest contribution on record and places New Zealand
third on this measure internationally, after Iceland and
Norway. This was due to strong growth in geothermal
electricity generation in 2014. Geothermal was the
highest contributor of renewable sources, representing
56% of the total (see attached figure), followed by hydro
(24%), bioenergy and solar (17%) and wind (2%). The
Energy and Resources Minister, Simon Bridges, said the
report showed New Zealand was making real gains in
transitioning to a lower carbon economy. As I
announced earlier in the year, in 2014 renewable
electricity generation hit 79.9 percent, the highest level
October-December 2015
IGA News No. 101
since 1996, Bridges said. For electricity generation,
geothermal provided 16.2% of the total supply in 2014,
with hydropower providing 57.1%, natural gas 15.7%,
coal 4.3%, wind 5.2% and bioenergy 1.5%.
Source:
http://www.globalpost.com/article/6629590/2015/08/
12/renewable-energy-supply-hits-record-high-new-
zealand, http://www.med.govt.nz/sectors-
industries/energy/energy-
modelling/publications/energy-in-new-zealand/Energy-
in-New-Zealand-2015.pdf
OTHER
Technology: Using Nickel in
Geothermal Equipment and
Pipes
According to a note appeared in the Volume 30-1 of
Nickel Magazine, published by the Nickel Institute, when
produced geothermal brines are corrosive, nickel alloys
and nickel stainless steels can be used to solve problems.
Those brines can be acidic and often contain metal ions,
corrosive chlorides and siliceous compounds as well as
corrosive gases, such as carbon dioxide, sulfur oxides
and hydrogen sulfide. Corrosive compounds and gases
at high temperatures will come into contact with much
of a geothermal plants processing equipment and
piping which means that nickel-containing materials
have an important role.
Corrosion damage was a major issue for older
geothermal power plants employing carbon steel for
pipework and process equipment. As operating
experience grew, nickel-stainless steels such as Types
304L (UNS S30403), 316L (S31603), 310S (S31008) and
321 (S32100) were increasingly used and are now the
workhorse alloys used in much of the geothermal
industry.
However, some stainless steels are vulnerable to pitting
corrosion and chloride or sulfide-induced, stress-
corrosion cracking in geothermal brines. Because of
this, corrosion-resistant alloys with higher nickel content
have been increasingly employed. Where corrosive
environments cannot be controlled by using corrosion
inhibitors, duplex stainless steel Types 2205 (S32205),
2507 (S32750) and 2707 (S32707) and high nickel
stainless steels such as 904L (N08904) and 6% Mo
alloys (e.g. S31254 or N08367), have often performed
well.
The wide variation in geothermal brines has meant,
however, that there is not one universal solution.
Research is needed to match the best performing
material to the process fluids. Depending on the
operational demands, nickel alloys such as Alloy 625
www.geothermal-energy.org
26
(N06625), C-276 (N10276) and even higher alloys are
needed. Other nickel alloys such as Alloy 600 (N06600),
601 (N06601) and 825 (N08825) have found selective
uses to cope with specific highly corrosive geothermal
operations.
Source:
http://www.nickelinstitute.org/en/NickelMagazine/Ma
gazineHome/AllArchives/2015/Volume30-
1/FeatureGeothermal.aspx
Technology: Steam Turbines
Made More Efficient with
Slippery Coating
LiquidGlide, a company which invented super slippery
surfaces for the inside of ketchup bottles among other
things, has started a new company called DropWise that
aims to use similar technology to clean up the
atmosphere. DropWise has developed a slippery coating
that could dramatically cut the emissions from power
plants by making them far more efficient. The coating
works with any kind of power plant that relies on steam-
driven turbines: coal, natural gas, solar thermal,
geothermal, biomass and nuclear.
In these power plants, steam passes through a turbine
and is captured in a water condenser that cools it down
and turns it into a liquid. This process of hot steam
meeting a coolant creates suction that pulls the steam
through the turbine to turn the blades and generate
electricity. The coating would be applied on the
condenser surfaces, making it slippery so that the water
droplets would be sucked through far more easily
instead of building up on the surface, thus making the
turbine much more efficient.
The coating could be added by passing two gasses into
the condenser that with the addition of heat that would
react to form a thin coating within. By controlling the
temperature and pressure during the process, DropWise
says it can achieve nanometer-level accuracy. Adding the
coating is simple and cheap for the power plants, says
DropWise. Utilities make back their investment in two
to three years.
October-December 2015
IGA News No. 101
The company says that each power plant adding the
coating reduces emissions equal to taking several
thousand cars off the road. If the coating were installed
globally, it would have the same CO2-reducing impact as
all solar and wind power installations combined.
The other benefit to this technology is that it saves
water. Thermal power plants are the second largest
consumer of water on the planet. By enhancing the
efficiency of the condenser, the coating allows a power
plant to generate the same amount of electricity with
less coolant water.
The best future is one where all of our energy comes
from renewable and water-saving sources, but for now,
90 percent of our energy comes from thermal power
plants. Anything that could easily slash these emissions
and water use is a good idea.
Source: http://www.treehugger.com/clean-
technology/slippery-coating-dramatically-cuts-power-
plant-carbon-emissions.html
Technology: New Drilling
Technique Based on Firing
Projectiles
Diagram of the patent (from the US Patent Office)
detailing the novel drilling system. Diagram
published by Daily Mail, UK (see source).
www.geothermal-energy.org
27
The US drilling company HyperSciences, based in
Washington, has a patent on a new technique to
construct boreholes by repeatedly firing projectiles at
speeds of 2 km/s to blast the hole, claiming that this
technique is ten times faster than traditional drilling.
Technology known as a ram accelerator is, in principle,
capable of accelerating projectiles to speeds greater than
8 km/s. HyperSciences has been awarded a patent on a
new type of ram accelerator funded by a US$1 million
grant from the Shell GameChanger program. The ram
accelerator in its design serves as both the chamber and
barrel of this Earth gun. The bullets would fire at high
velocity causing whatever is in their path to vaporize.
The projectile is fired out of the gun and enters a series
of tubes containing mixtures of air and combustible
gases. The shape of the projectile compresses the gases
as it passes through them, and theyre ignited behind the
projectile, propelling it forward to velocities of multiple
kilometers per second. At that speed, the projectile
obliterates whatever rock or sediment it hits, and the
residues are sucked back out of the hole.
The technology of accelerating things to very high
speeds is well-established. NASA has been doing
hypervelocity research for decades in an effort to
experimentally investigate asteroid impacts, which
typically occur at tens of kilometers per second. They
use a light gas gun to accelerate small (marble-sized)
projectiles to speeds of around 7 km/s, and then they
watch what happens when those projectiles smash into
things. A light gas gun is, more or less, a very powerful
air-gun. At the back, you have a large piston in a large
gas chamber, and at the front, you have a small barrel
with the projectile in it. By rapidly accelerating the
piston (usually with a gunpowder charge), you rapidly
compress the gas in the gas chamber. When you force
that gas into the much smaller diameter barrel, it acts
like a lever to increase the speed of the gas, accelerating
the projectile. Usually, gas guns use hydrogen instead of
air, because the limiting factor to the final speed of the
projectile is how fast the shockwave can propagate
through the gas (the speed of sound, in other words),
which is nearly four times as fast in hydrogen as it is in
air. Thus, if the energy released by the projectile can be
directed downwards on impact as opposed to outwards,
it doesnt seem too crazy to suggest that you might be
able to vaporize solid rock.
The company is now looking at the possibility of adding
plastic explosives, so that they can increase the depth of
each shot. HyperSciences hopes the gun could be used
to reach geothermal resources at depths up to 3.2 km,
by being fired repeatedly.
Sources:
http://www.dailymail.co.uk/sciencetech/article-
3173966/Forget-drills-Shell-wants-use-GUNS-Firm-
backs-plans-fire-giant-bullets-ground-reach-geothermal-
October-December 2015
IGA News No. 101
energy.html#ixzz3hD8ZAXiw,
http://spectrum.ieee.org/energywise/energy/renewable
s/digging-for-geothermal-energy-with-hypersonic-
projectiles/?utm_source=energywise&utm_medium=e
mail&utm_campaign=072915
Technology: Balls of DNA as
Geothermal Tracers
It is possible to test the path of subsurface flows of
water or brine injected through geothermal wells with a
range of tracers, from chemicals to radioactive elements
to fluorescent dyes. But those methods can produce
muddled results. Scientists mix the tracers with water
flowing into the injection well and then monitor the
production wells, where they should show up after
certain time. However, the tracers could get trapped or
destroyed; they could be leftover from a test that
happened six months ago, or they could go completely
haywireas one research group experienced.
Thats the kind of complication that happens in field
practice that we want to avoid by using DNA, says
Roland Horne, a geothermal engineer at Stanford
University and former IGAs President. With specific
DNA tagseven if you lose some of themyou would
be able to know exactly where you injected a tag and at
what time.
Building on work by scientists trying to preserve long
DNA codes, Hornes geothermal team used short,
synthetic DNA fragments to track moving water. The
DNA has a unique pattern of about a hundred base
pairs, and it curls around a tiny silica ball. Then, the
team puts a silica shell around the DNA to protect it.
Yuran Zhang, a young member of the Hornes team,
presented their lab results at the Annual Geothermal
Resource Council conference in Reno.
SEM (Scanning Electron Microscope) image of SiO2
Silicon Dioxide empty balls, coated with gold.
Photo by Sheri Neva.
www.geothermal-energy.org
28
In a geothermal reservoir the environment is very harsh,
with intense pressure and temperatures that can go over
300C. So far, the DNA silica balls have survived six
hours in 300 degrees in the lab, but they havent been
field tested. Horne and his team still have to work to
safeguard the DNA for the long field trials. And that
will be the next stepmore endurance under more
heatas part of the race happening all over the world
to find tough, reliable and accurate tracers.
Source: http://www.wired.com/2015/09/balls-dna-fix-
geothermal-energys-biggest-problem/
Finance: New Instrument for
Insure Geothermal
Exploration Risk
The German financial company specialized in re-
insurance, Munich Re, has provided an overview on its
new geothermal exploration risk insurance product,
recently implemented in Kenya and almost ready to be
launched in Mexico. In Kenya the company says that it
has implemented a new coverage concept with its
Multiple Well Risk Insurance, which comprises of a
portfolio of several production and injection wells
instead of a doublet with just two wells as usual in
Europe. The minimum energy yield of a complete
portfolio of wells is consequently insured in several
project phases. Parameters for each phase are agreed
between Munich Re and the project; these determine
whether the project is to be aborted as being
unsuccessful, thus triggering an insurance payment or
whether the promising results achieved merit
continuation to the next phase. The process involves a
close exchange of information and alignment of
interests between Munich Re and the project. An
advantageous concept for both sides: balancing the
higher risk at the beginning against the lower risk in
later phases makes the project insurable and provides
investors with comprehensive security for the entire
project term. The option of an early exit in the event of
failure also serves the interests of both parties, as it
limits the investors risk of financial loss.
A similar program will be launched in partnership with
Mexicos Energy Ministry, the Mexican development
bank NAFIN and the Inter-American Development
Bank. What distinguishes this program is that Munich
Res exploration risk insurance has been enhanced to
form a unique complete financial package for project
developers: 1. Liability for the first commercial, non-
insurable exploratory wells is transferred to a risk fund
financed by the Inter-American Development Bank and
Clean Technology Fund. Munich Re takes over liability
for the subsequent wells. 2. The insurance premiums for
these exploratory wells are partly subsidized by a
premium subsidization fund financed by the Energy
October-December 2015
IGA News No. 101 29

Ministry. 3. The development bank NAFIN grants the temperatures in sediments below Subglacial Lake
projects a package of low-interest loans to finance all Whillans, which lies beneath half a mile of ice. After
phases of the project; commercial banks would be boring through the ice sheet with a special hot-water
unable to offer a package in this form. drill, researchers lowered the probe through the
borehole until it buried itself in the sediments below the
Munich Res solution offers various advantages for
sub-glacial lake. The probe measured temperatures at
investors and operators. For investors, the availability of
different depths in the sediments, revealing a rate of
exploration risk insurance makes investments in deep
change in temperature with depth about five times
geothermal energy projects considerably safer, more
higher than that typically found on other continents.
plannable and more attractive. Similarly, operators are in
The results indicate a relatively rapid flow of heat
a better position to convince investors of the feasibility
towards the bottom of the ice sheet.
of ambitious projects and get them launched, since
Munich Re, as a technically experienced and financially High heat flow below the West Antarctic ice sheet may
sound partner, will assume the risk of unsuccessful also help explain the presence of lakes beneath it and
exploration. why parts of the ice sheet flow rapidly as ice streams.
Water at the base of the ice streams is thought to
Source: http://www.thinkgeoenergy.com/munichre-on-
provide the lubrication that speeds their motion,
its-exploration-risk-insurance-product-for-kenya-and-
carrying large volumes of ice out onto the floating ice
mexico/
shelves at the edges of the ice sheet. Fisher noted that
the geothermal measurement was from only one
Science: Surprisingly High location, and heat flux is likely to vary from place to
Geothermal Heating Revealed place beneath the ice sheet.
Beneath West Antarctic Ice This geothermal heating contributes to melting of basal
ice, which supplies water to a network of sub-glacial
Sheet lakes and wetlands that scientists have discovered
The amount of heat flowing toward the base of the underlying a large region of the ice sheet. In a separate
West Antarctic ice sheet from geothermal sources deep study published last year in Nature, the WISSARD
within the Earth is surprisingly high, according to a new microbiology team reported an abundant and diverse
study led by researchers at the University of California microbial ecosystem in the same lake. Warm geothermal
(UC) Santa Cruz. conditions may help to make sub-glacial habitats more
supportive of microbial life, and could also drive fluid
The results, published on July 10 in the online journal flows that deliver heat, carbon, and nutrients to these
Science Advances, provide important data for researchers communities.
trying to predict the fate of
the ice sheet. It has
experienced rapid melting
over the past decade.
The study draws upon data
collected by a large
Antarctic drilling project,
funded by an award from
the National Science
Foundations Division of
Polar Programs, called
WISSARD (Whillans Ice
Stream Subglacial Access
Research Drilling), for
which UC Santa Cruz is Figure 1 of the mentioned paper.
one of three lead
institutions. The others are Montana State University The geothermal heat flux measured in the new study
and Northern Illinois University. The Division manages was about 285 milliwatts per square meter ( 80
the U.S. Antarctic Program, through which it mW/m2). The researchers also measured the upward
coordinates all U.S. scientific research on the heat flux through the ice sheet (about 105 milliwatts per
southernmost continent. square meter, 13 mW/m2) using an instrument
developed by coauthor Scott Tyler at the University of
The research team used a special thermal probe, Nevada, Reno. That instrument was left behind in the
designed and built at UC Santa Cruz, to measure WISSARD borehole as it refroze. The measurements,
www.geothermal-energy.org October-December 2015
IGA News No. 101
based on laser light scattering in a fiber-optic cable, were
taken a year later. Combining the measurements both
below and within the ice enabled calculation of the rate
at which melt water is produced at the base of the ice
sheet at the drill site, yielding a rate of about half an inch
per year.
Source:
http://www.nsf.gov/news/news_summ.jsp?cntn_id=1
35624
Science: Model that Simulates
Super-Critical Geothermal
Reservoirs
In 2008, while hunting for even hotter geothermal
reservoirs, Icelandic researchers working on the Iceland
Deep Drilling Project (IDDP) discovered a reservoir of
extremely hot water that has the potential to greatly
expand geothermal electricity output. Now geoscientists
of a Zurich institute have for the first time produced a
realistic simulation of how such reservoirs are created.
They predict these natural phenomena are widespread in
volcanic areas, such as Japan and New Zealand.
Test borehole on the Krafla lava field in Iceland.
(Image: Kristjan Einarsson/IDDP)
Directly above the magma chamber, the researchers
discovered a hitherto unique geothermal reservoir of
water: one in which temperatures reached 450C, a state
which scientists refer to as supercritical. Water becomes
supercritical when heated above 374C, from which
point it starts behaving like a mixture of the gas and
liquid phases. The two phases become inseparable and
indistinguishable, resulting in a fluid that can be as dense
as a liquid but at the same time flow as easily as a gas.
Water that has been heated by the magmatic intrusion
to a supercritical temperature contains enough thermal
energy for a single borehole to provide 35 megawatts of
electrical capacity.
www.geothermal-energy.org
30
In 2011, two years after this unusual energy source was
discovered, the IDDP consortium began conducting
tests at the borehole. They made a lot of new
discoveries, but they were unable to shed any light on
how the reservoir had come to be. Was it a freak of
nature, or might such reservoirs be more widespread
than people had assumed?
Three ETH Zurich geoscientists decided to simulate
this unusual geothermal system using a new computer
modeland they now understand how it occurs, under
what conditions it can arise, and where to look for other
such systems. The results and the associated modeling
have just been published in Nature Communications.
The simulations offer a realistic representation of this
reservoirs behavior, even though we kept the model as
simple as possible and built in only a few parameters,
says Thomas Driesner, a senior lecturer at ETH
Zurichs Institute of Geochemistry and Petrology,
adding that the most satisfying thing about the
simulations was that they reproduced what the Icelandic
IDDP researchers had observed at the borehole.
Their model illustrates which interactions are necessary
between various geological factors permeability of the
host rock and the temperature at which that rock
becomes plastic, and the depth of the intrusion for
ideal conditions to arise for reservoir formation. This
knowledge helps to narrow the search for such
reservoirs of extremely hot water.
Now the researchers are also looking to expand this
method. As part of a Sinergia project with funding from
the Swiss National Science Foundation (SNSF), they
want to work closely with geophysicists to find out
whether these reservoirs can also be detected using
seismic techniques.
Source: https://www.ethz.ch/en/news-and-events/eth-
news/news/2015/08/supercritical-water-as-geothermal-
reservoir%20.html
Science: Gold and Silver
Resources in Geothermal
Systems of Taupo, New
Zealand
A small team of researchers from U.S. and New
Zealand has found that there are large deposits of gold
and silver in at least six reservoirs beneath several
volcanoes in New Zealand. In their paper published on-
line in the journal Geothermics (Simmons, S.F., K.L.
Brown, P.R.L. Brown, and Rowland, J.V., 2015). The
team describes their investigation into the geothermal
systems in the V-shaped Taupo Volcanic Zone on New
Zealands North Island and just how much of the
precious metal they believe is hiding down there.
October-December 2015
IGA News No. 101
The authors said in the papers abstract that Earlier
investigations show that some geothermal systems of
the Taupo Volcanic Zone are sites of precious metal
transport and deposition. Gold and silver precipitate in
hot springs, in subsurface hydrothermally altered rocks,
and in two-phase pipelines associated with production
wellsthe result of gas losses due to flashing and
adsorption in the As and Sb-rich sulfur phases. The
amounts of Au deposited in subsurface rocks may
exceed several hundred thousand ounces, but the
concentrations appear to be very low grade (<1 ppm
Au). High-grade deposits are forming in hot springs,
containing >500 ppm Au and >700 ppm Ag, but small
metal inventories (<10,000 oz Au) and very high
conservation value eliminate these sites as potential
resources.
Down hole sampling of production wells shows deep
reservoir waters have Au concentrations ranging from
<0.1 to >20 ppb and Ag concentrations ranging from
<2 to >2000 ppb. The limited data suggest that at
modest concentrations, production wells could produce
0.3 to 3.0 kg Au/year, but that wells in Rotokawa, might
produce 1970 kg Au/year. For modest Ag
concentrations, production wells could produce 3100
kg Ag/year, but wells at Mokai and Rotokawa might
produce 6807500 kg Ag/year. The total amounts of
aqueous Au and Ag in reservoirs could be on the order
of tens of thousands of ounces Au and hundreds of
thousands of ounces Ag, or more.
New technologies need to be developed to extract the
metals from the flow stream of production wells
without interfering with geothermal energy production
for continued metal extraction to be feasible. The
alternative is to let precious metals accumulate in two-
phase pipelines, to be recovered in intervals when
practical for steam field operations and optimal in terms
of profitability.
Sources: http://phys.org/news/2015-08-large-amount-
gold-silver-reservoirs.html#jCp,
http://www.sciencedirect.com/science/article/pii/S037
5650515000929
Competition: EGP Launches
International Competition
Enel Green Power has launched an Innovation
Competition, a public prize challenge, organized to
solve five technical issues, with new and innovative
ideas.
Deadline to send innovative proposals to address these
challenges is 11:59 PM (Italian Time) on October 31,
2015.
Source: http://www.enelgreenpower.com/en-
GB/innovation/innovation/concorso_innovazione/
www.geothermal-energy.org
31
IGA News
IGA News is published quarterly by the International
Geothermal Association. The function of IGA News
is to disseminate timely information about
geothermal activities throughout the world. To this
end, a group of correspondents has agreed to supply
news for each issue. The core of this group consists
of the IGA Information Committee:
Luis C.A. Gutirrez-Negrn, Mexico (Chairman)
Rolf Bracke, Germany
Paul Brophy, USA
Varun Chandrasekharam, India
Surya Darma, Indonesia
Ldvk S. Georgsson, Iceland
Jos Luis Henrquez, El Salvador
Susan F. Hodgson, USA
Eduardo Iglesias, Mexico
Marcelo J. Lippmann, USA
Alfredo Man-Mercado, Mexico
Fernando (Ronnie) Pearroyo, Philippines
Paul Quinlivan, New Zealand
Alexander Richter, Iceland
Horst Rueter, Germany
Benedikt Steingrmsson, Iceland
Koichi Tagomori, Japan
Shigeto Yamada, Japan
The members of this group submit geothermal news
from their parts of the world, or relevant to their
areas of specialization. If you have some news, a
report, or an article for IGA News, you can send it
to any of the above individuals, or directly to the
IGA Secretariat. Please help us to become essential
reading for anyone seeking the latest information on
geothermal worldwide.
While the editorial team makes every effort to ensure
accuracy, the opinions expressed in contributed
articles remain those of the authors and are not
necessarily those of the IGA. The editorial team does
not assume any liability for external content taken
from public sources and websites, or endorse the
products or services mentioned.
Send IGA News contributions to the editor
(l.g.negrin@gmail.com) and/or:
International Geothermal Association (IGA)
c/o Bochum University of Applied Sciences
Lennershofstr. 140, 44801 Bochum, Germany
Tel.: +49 (0)234 32 10712, Fax: +49 (0)234 3214809
E-mail: iga@hs-bochum.de
This issue of IGA News was edited by Luis C.A.
Gutirrez-Negrn. Susan F. Hodgson proofread the
articles. Distributed by Marietta Sander for the IGA
Secretariat. Design layout by Franois Vuataz.
October-December 2015
IGA News No. 101 32

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