Exploration work on two geothermal project sites in Armenia funded by the GeoFund of the World Bank, suggest that the Karkar site has the largest potential and a decision to drill exploratory wells will be made within the next month.
In a report on the status of implementation and results, the World Bank has released an update on a Geofund 2 funded project in Armenia.
The funding for the project was approved in 2009 under an adaptable program loan. The project is aimed to “remove barriers to development of geothermal energy in Armenia”, and “to assess the feasibility of exploratory drilling of the geothermal site with the estimated highest geothermal potential”.
The funding provided was $1.86 million.
“Implementation of the first phase of the project is completed. The results of technical field investigation works – two-dimensional magneto-telluric (MT) sounding and independent interpretation of the sounding results – suggested that out of the two geothermal sites, Karkar (in South-Eastern part of the country) has the largest geothermal potential.
Implementation of the second phase of the project is underway.
The 3D MT sounding of the Karkar site and the independent interpretation of the 3D MT sounding study results are completed and confirmed technical viability of the site. The assessment of economic and financial viability of the prospective geothermal plant in the Karkar site is underway and will be completed by September 10, 2012.”
A decision to drill or not to drill exploratory wells will be made at the end of September 2012. A surface geological map was produced with proposed areas for further investigation. 3D images of the site subsurface structure were produced in the end of July 2012 to determine precise locations of potential exploratory wells.
The technical investigations completed during Phases 1 and 2 of the project confirmed technical viability of the Karkar site. The economic and financial viability assessment of the prospective geothermal plant in the Karkar site will indicate if exploratory drilling of one or two wells is justified.”
Source: World Bank Report No: ISR7558