Mines and Petroleum Minister Norman Moore said on Monday that the new permits would increase the state’s potential to generate significant new renewable energy supplies.

The new permits granted by the Department of Mines and Petroleum would enhance what was becoming a “robust” geothermal exploration sector, Moore said.

Eight of the new permits were granted to companies exploring the greater Carnarvon Basin in Western Australia’s north, while the remaining two permits focus on the south-east region, near Esperance.

The Carnarvon Basin was the second area of Western Australia released to competitive bidding for geothermal exploration.

Geothermal explorer New World Energy has received seven of the eight permits in this region, while Geothermal Energy received the other.

“These permits cover a combined work area of 34 556 km2 and involve a total work programme expenditure of A$62,6-million across the six-year life of the permits,” the Minister said.

The south-east area was the subject of Western Australia’s third geothermal acreage release. The two permits in this area were granted to Greenpower Energy and cover a combined area of 10 732 km2, with total work programme expenditure of A$42,9-million planned across six years.

“It is encouraging the geothermal sector in this state is gaining new members at the same time as increasing its geographical spread,” Moore concluded.”

Source: Mining Weekly

The amendment was approved for inclusion today in the American Workers and Business Relief Act, which is expected to pass the Senate on Wednesday. It gives counties their share of royalties and lease income from geothermal plants within their borders, dating back to the beginning of the federal fiscal year.

“Today is a big win for our state,” Sen. John Ensign, R-Nev., said. “The economy across our state has been truly hurting and the loss of geothermal royalties last year has cost counties in Nevada to lose out on hundreds of thousands of dollars. Our legislation will ensure that our state and counties receive their cut of geothermal royalties and will ensure that the economy in our state will not be forced to take another hit when it comes to monetary and job losses that stem from losing out on geothermal royalties.”

The House of Representatives has not yet addressed its version of the amendment, authored by Congressmen Dean Heller and Mike Thompson, D-Calif.

The state of Nevada and rural northern counties receive millions of dollars in royalties and lease revenue from geothermal companies with plants on public land in the state each year. The 2005 Energy Policy Act made it possible for counties to collect a quarter of the revenue from leases and royalties on geothermal plants in their borders.

Home states would collect half the revenue and the federal government could keep the last quarter.

Since the law was first implemented in 2007, Nevada counties have taken in nearly $17.8 million from royalties and lease income. The state has gotten nearly $35.6 million.

With a boom in geothermal energy expected over the next decade, the counties stand to make hundreds of millions of dollars in revenue from geothermal leases and royalties.

The federal government in October began commandeering counties’ share of geothermal royalties and lease income, when the new Interior Department federal fiscal year 2010 budget went into effect.”

Source: Las Vegas Sun

Geothermal projects, which help generate energy by harnessing the earth’s inner heat, offer steady and clean power but are marred by multimillion-dollar drilling costs.

The company said it hopes that its QuantumRD technology would help in reducing drilling risks and exploration costs for renewable energy projects.”

Source: Company release via Reuters

During a visit to Jakarta on Monday, JBIC executive director Fumio Hoshi said the bank, which is already funding a geothermal project here, was interested in expanding its investments in the renewable energy sector.

“I’m not going to say how much [the size of the investment will be] as we don’t have any limits but as long as Japanese companies are involved as sponsors, and in operations and maintenance, we are happy to support geothermal power projects in Indonesia,” he explained.

“We hope that we can finance more projects where Japanese companies could be involved.”

JBIC has already pledged $800 million to help finance the $990 million Sarulla geothermal plant in North Sumatra.

Part of phase two of the government’s fast-track electricity generation program, the plant is expected to come on stream next year and reach its full 440-megawatt capacity by 2015.

Sarulla is owned by a consortium consisting of Japan’s Itochu Corporation, Israel’s Ormat Corporation and local company PT Medco Energi International.

In September 2006, JBIC reached an agreement with the Finance Ministry to encourage the development of independent power producer projects in the country.

Last month the two parties stepped up cooperation by agreeing to hold regular consultation meetings focused on independent power projects and geothermal energy.

The second phase of the fast-track program, scheduled to be completed by 2015, will boost electricity generation capacity by 10,150 MW and will focus on cleaner technologies such as gas and geothermal.

State-owned electricity utility PT Perusahaan Listrik Negara is expected to spend $5.9 billion on the construction of 21 new power plants with a combined capacity of 5,118 MW as part of the second phase.

The government is aiming for independent power producers to provide the rest of the capacity by investing a total $10.05 billion in the construction of an additional 72 power plants.

PLN has already attracted financing from another Japanese organization, the Japan International Cooperation Agency, to help build one coal-fired power station and two geothermal projects that are part of phase two of the fast-track.

Pursuant to the terms of the Private Placement, each Investor will also be issued a common share purchase warrant (a “Warrant”) exercisable for 50% of the number of shares of Common Stock purchased by the investor. Each Warrant is exercisable at $1.25 per share for a period of five years beginning six months after the closing of the private placement. After deducting for fees and expenses, the net proceeds are anticipated to total approximately $8.0 million.

The net proceeds of the offering will be used by the Company to further develop its Neal Hot Springs geothermal project and for general working capital purposes. Initiating a planned capital project for Raft River Unit I and a well drilling program for a planned future expansion at San Emidio may be subject to completion of future financing.”

Source: Company release via Marketwire

By using the remaining 3% to create a European geothermal risk insurance scheme, the EU will remove one of the main barriers for geothermal development in Europe, particularly in Eastern Europe, argues EGEC. The geothermal industry association adds that such governmental risk mitigation schemes exist in France, Switzerland, Germany and the Netherlands. Geological risk relates to the possibility of failure, following drilling, to achieve insufficient production and/or temperature characteristics. This then renders the operation unprofitable.

“A scheme at the European level is crucial and is lacking. It could be developed in cooperation with the European Investment Bank,” continues EGEC. Risk coverage schemes would cover a certain percentage of the investments. Pointing to the huge potential in Central and Eastern Europe, EGEC adds that a European geothermal risk fund would restore geographical “balance” as a significant portion of the €3.98 billion under the EERP went to energy projects located or managed by companies in Western Europe. ‘New’ member states would also significantly improve their security of their energy supply.”

Source: Europolitics, EGEC reaction (pdf)

“EDC is the world’s second largest producer of geothermal energy and with the help of its 33 years of experience, we expect to harness these additional 300 MW within three to five years,” said EDC director Federico R. Lopez .

In an interview with the Oxford Business Group, Lopez said these potential reserves were within the company’s concession areas, which are in Dumaguete, Negros Oriental (for the Palinpinon geothermal facility), Mt. Apo, Southern Leyte and in Legaspi/Sorsogon (for Bacon-Manito).

“The prospects for geothermal development in the Philippines remain very bright. The country’s location within the Pacific Ring of Fire brings with it many possibilities for both the conventional high-temperature geothermal steam that is generally used for power generation, and for the still untapped low-temperature geothermal,” said Lopez, who also heads parent firm First Gen Corp.

Based on EDC’s studies, Lopez disclosed that the Philippines has a high-temperature geothermal steam potential of 2,500 MW to 6,000 MW. On the other hand, the country’s potential for the low-temperature geothermal steam was estimated at about 500 MW.

EDC also bared plans to put up at least five greenfield geothermal power plants.

In an earlier interview with the Inquirer, EDC president Richard B. Tantoco said the company was looking at new plants within its five concession areas awarded by the Department of Energy. These areas, he added, give EDC an opportunity to grow by another 200 to 220 MW.

According to the DOE, the government targets to draw an additional 1,070 MW from geothermal energy sources by 2020, up from the 1,932 MW capacity in 2002. As of this year, the country draws 2,027 MW from geothermal resources.”

Source: Inquirer

The assessment, estimates an Inferred Geothermal Resource of 101,000 PJ for the identified reservoir volume of 384 km³. When added to KUTh’s estimated Inferred Geothermal Resource of 260,000 PJ at Charlton Lemont in the Tasmanian central midlands (see release 14 July 2009) the cumulative Inferred Geothermal Resource for Tenement SEL 26/2005 amounts to an estimated 361,000 PJ, representing the second largest Inferred Resource inventory in Australia. Figure 1 identifies KUTh Inferred Resource targets

Commenting on today’s announcement, Managing Director David McDonald said:  “We are very encouraged by our second Inferred Resource estimate in Tasmania which provides us with options on how we progress the next stage development of our projects.

Although we are at an early stage of resource assessment we can see the potential for these resources to play a significant role in energy supply, both in Tasmania and in the broader national electricity market. If we are successful in recovering and converting just 3% of our combined projects 361,000 PJ we would have the potential to generate a constant flow of 1150MW of electricity over a 30 year period – enough to service the current demand of Tasmania’s domestic and industrial needs”.

When asked about how such a capacity would fit with existing hydro-electricity infrastructure and wind projects slated for the state Mr McDonald pointed out that Tasmania has been an increasing importer of power ever since the Bass Link interconnector to mainland Australia was opened in April 2006:  “Imported power has increased from 13% in 2006/7 to 25% of Tasmania’s power needs in 2008/9 and we are keen to work alongside the Tasmanian government and the hydro resources to ensure we reverse this trend and export sustainable long term renewable power to the National Electricity Market (NEM).

It has been pleasing to see the commitment of funds by the Tasmanian Government to initiate a feasibility study into the construction of a second Bass Link to the mainland to maximise the potential for export of Tasmanian Renewable Energy resources. Tasmania has the potential to be a major renewable energy hub and this will bring with it industry, jobs and considerable infrastructural investment.

A Geothermal power station of 100MW will require an investment in the region of $600- $700m although the vast size of the inferred geothermal resource potential implies that this would be just the beginning. This scale of investment into the state will be a major contributor to the economy and the environment.”

Tasmania is gifted with renewable energy development potential and has taken a lead in the development of hydro resources and wind projects. In February, the Tasmanian government released the “Tasmanian Greenhouse Gas Emission Reduction Wedges Project” report showing options for carbon abatement potential.

The report forecasts that by 2020 the potential exists for renewable energy exports to mainland Australia to contribute 45% of the State’s carbon abatement program and allowing for increased power demand the forecasts show potential for 47% by 2050. Achievement of these targets will make Renewable Energy a cornerstone of the Tasmanian economy and a major contributor to the Tasmanian and national Mandatory Renewable Targets.

KUTh has been one of the few companies to carry out an extensive geophysical exploration program in order to target its drilling locations. A combination of magneto-telluric studies, aerial magnetics, gravity surveys and a major drilling program across the tenements has allowed the company to zero in on the high heat flow locations and best suited geological formations. The company will continue to employ this approach prior to commissioning its next-stage deep-drilling programs.”

Source: Company release (pdf)

San Jacinto-Tizate Project: The goal with this contract is to drill multiple wells, both injection and production, to roughly 2,500 meter depths to support the expansion of the current power generation plant. With 56 MW drilled and available at the production well heads, and the two most recently drilled production wells tested at 16 MW and 22.8 MW respectively, PENSA is expecting to drill only two additional production wells to reach the full 72 MW net capacity.

Tecton Geologic, a wholly owned subsidiary of ThermaSource also signed a contract for the mud logging business for the drilling operations on the San Jacinto-Tizate Project in Nicaragua.

Louis Capuano, Jr., Chief Executive Officer of ThermaSource, Inc., said “We are excited to be a part of the expansion of geothermal power in Nicaragua and look forward to working with Ram Power and PENSA on a successful drilling project.”

Stuart Johnson, Vice President Geothermal Resources for Ram Power, said “The drilling contract represents a major milestone in the completion of the San Jacinto-Tizate expansion and we are looking forward to the working relationship with ThermaSource. We believe that Nicaragua is quickly becoming one of the leading Central American countries developing geothermal power.”

Source: Company release

“We are enthusiastic about the opportunity to partner with two proponents of geothermal energy, USRG and Riverstone,” said Lou Capuano, Chief Executive Officer of ThermaSource. “With their support, ThermaSource will have the resources required to meet the critical needs of an expanding market for geothermal drilling and consulting.”

“The opportunity to partner with ThermaSource was one of the attractions in acquiring and restarting the 55 megawatt Bottle Rock geothermal power project in the Geysers,” said Tom King, Managing Director of USRG Management Company, LLC. “ThermaSource has been the premier drilling services company serving the geothermal sector. Their experience and expertise will help accelerate the expansion of geothermal energy.”

“We are excited to back Lou and his ThermaSource team,” said Stephen Schaefer, Managing Director of Riverstone. “We expect great opportunities in the next several years in the geothermal industry and believe that ThermaSource will be at the center of much of that growth.”

Source: Company release via Hao-Odnla

Simpson said this week that company officials, at the request of property owners that have leased geothermal mineral rights to the company, met about eight months ago with county officials to explain the project process. The recent meeting was an update.

According to Simpson, the company has leased geothermal mineral rights from private property owners on about 17,000 acres in the Newdale area in Fremont and Madison counties on both sides of the Teton River.

From Newdale to the east to north, the company has leases on an area about 4 1/4 miles long to 4 miles wide with another 1/2 mile to the south of Newdale. “Last year we drilled 30 geothermal gradient test wells to measure the wells’ temperature gradient levels over the prospect area,” Simpson says.

Using information gathered from those wells and from data available from public sources, “We get a big broad picture of the temperatures,” he says.

Then a scientific formula or model is used to guess the temperatures that might exist at depths of 3,500 to 7,000 feet. “We’re looking at the temperatures, information about the structure, the geology and geophysics from other drilling within the past 30 years,” he says.

The object was to come up with sites for four wells that would be drilled to the target depths of 3,500 to 7,000 feet to see if the water temperatures are sufficient to produce steam to produce electrical energy.

Simpson says the company is at that stage. It has located four sites where deep wells might be drilled — all on the north side of the Teton River on private property.

“Now the next step is to drill the deep holes to target the range and discover the temperatures and pressure at that level,” he says. The first hole will be dug as soon as the expensive and heavy drilling rig can be moved into the isolated location this spring. Simpson says it depends upon the weather, but drilling the first hole could begin in May or June.

“It’s expensive. It’s a big drill rig. It will take from 90 to 120 days to get to depth, depending on the weather,” he says. What that well shows will likely determine the status of the rest of the project. “If the first well has no (sufficient) temperature a decision will have to be made whether to proceed.”

If the company finds what it’s looking for, it will drill more deep holes and test the production of the wells over a 60- to 100-day period, pulling water from it and putting it back in, gleaning more data.

If the results are good, the plans are to drill a total of from eight to 14 producer and injector wells with a power plant to use the geothermal resources the wells contain.

“That takes us to 2011 or 2012,” Simpson says. “It would be 2013 until the power plant would be turned on.”

It’s no secret that a number of wells have been drilled to test the feasibility of harnessing geothermal energy in the area.

Simpson says the wells in the 1970s were drilled using old technologies. “Since then the technologies have changed,” he says. And there have been big changes in the value of energy. Although Idaho doesn’t have a mandate for producing renewable energy, other states, such as Utah, do. Idaho does not have the benefits that come with the mandate either.

“If we wheeled power into Utah we would be eligible for tax breaks and incentives,” he says. “The economics have changed.” Still, he says, “it’s economically feasible to produce geothermal energy without relying on the incentives.”

The Newdale-area folks who have leased geothermal mineral rights to Standard Steam Trust were paid a bonus upon leasing. They also receive rent payments. If the company proceeds to drill more deep holes and eventually produces power, leases involved will receive royalties.

Simpson says the U.S. has the largest number of geothermal power plants in production in the world, but there is still a potential for more, particularly in the West on public land.

“Nevada and Utah are where the resources are located on BLM (Bureau of Land Management) land,” he says. The drawback to developing such resources in the red tape involved in getting the permits, he says.”

Source: Standard Journal

Crump Geyser: Ongoing geothermal resource evaluation and characterization of the Crump Geyser property has led to the selection of initial production test well targets. Three development wells are planned in 2010 along with other work.

Within the project area, a prominent, active geothermal system is situated along the range front fault zone and extending eastward into the basin. A geothermal system model has been developed from: the distribution and character of extensive hot springs along the west margin of the Warner Valley Rift, extensive geological and structural mapping, fluid geochemistry and geothermometry, airborne and ground magnetic studies, gravity surveys and electrical resistivity mapping.

The reservoir model considers that the reservoir configuration is controlled by the predominant range front fault zone, cross cutting NW transfer faults, and permeable, layered volcanic formations underlying the Warner Valley.

An airborne magnetic survey, jointly funded by NGP and the US Department of Energy (DOE) will begin this week, to be followed with a seismic reflection survey, supplemental ground magnetic surveys, and precision gravity surveys. These data will provide an unprecedented level of structural, thermal, and geochemical detail of the reservoir, which will enhance targeting precision, and accelerate future drilling and development operations at the Crump Geyser Geothermal Project.

NGP plans further work under a separate cost-shared drilling program with the DOE which includes exploration drilling outward from the core area around Crump Geyser, that will expand the understanding of the reservoir configuration and guide future drilling. Eight widely spaced, thermal gradient holes will be drilled in the first half of this year, followed closely by two deeper slim-holes designed to penetrate and test the reservoir. Thermal gradient well permit applications have been filed and are pending review with the Oregon State Department of Geology and Mineral Industries (DOGAMI).

Pumpernickel Valley: Exploration at the Pumpernickel Valley Geothermal Project has identified production test well targets associated with the Pumpernickel Fault and several parallel piedmont faults immediately east of Pumpernickel Fault indicated by seismic surveys along the west side of Pumpernickel Valley.

Extensive exploration work has been completed in the period between 2004 and 2010. Thermal gradient drilling, fluid geochemistry, extensive gravity, resistivity and seismic reflection surveys highlight multiple areas of interest within a potentially productive hydrothermal system. Geochemistry of hot spring and geothermal fluids recovered in wells predicts 338F (170C) reservoir source fluids migrating up from great depths along multiple, sub-parallel, extensional faults having significant lateral extent north and south on the lease holdings.

Three deep development wells are planned, all on private leases within NGP’s 5760-acre (9 square mile) lease hold. A drilling permit has been obtained for the drilling of a 7-inch diameter development well that is planned to start the second quarter of 2010.”

Source: Company release via Marketwatch

The global carbon trading market, which rewards projects that help reduce emission of carbon dioxide into the atmosphere, is now worth estimated Sh12.5 trillion ($170 billion), according to industry data provider, Carbin Point, but only a very small fraction of this money, estimated at two per cent, is coming to Africa.

“We are not getting enough projects in Kenya. People are aware, but the proposals they present are poorly done,” said Tom Owino, of JP Morgan Climate Care, which helps corporate and non-profit organisations earn from the carbon market.

Proposals that are coming from Kenyan companies are requests for money to finance the intended projects with owners hoping to raise all the project money from the organisation which will buy the emission reductions.

This is not supposed to be the case, Mr Owino said, because the serious project proposals must have part or all of the financing requirements.

The proposal must also be accompanied by a good business plan that can raise the appetite of banks to finance the project.

Banks in Kenya are yet to start active financing of carbon trading projects partly because of lack of skills needed to evaluate financing risk of such projects.

KenGen is eyeing at least Sh300 million (US$3.7 million) before the end of 2012 as proceeds from the carbon market deal it signed with the World Bank in 2006.

The company is seeking to earn the credits from the development of Olkaria II Unit 3 Project which is expected to produce 35MW of electricity when it starts operation around May 2010.

Jane Watiri of the Green Earth Trust, which is helping organisations design carbon market projects and guide them how to earn from those projects said there is a huge pool of investors ready to finance viable projects that make business sense.

“From our experience, financing a carbon trading project is not a problem. The only problem is getting a project that is viable on a project proposal that makes business sense,” said Ms Watiri.

One CER costs $10 or Sh760 based on Wednesday’s exchange rate. But this price changes depending on the players involved.

National Environment Management Authority (Nema) is charged with the responsibility of being a focal point in coordinating carbon market projects, but the industry said the authority is not visible in the Kenya’s carbon market circles.”

Source: Business Daily

John Hancock and the US Department of Energy (DOE) are continuing with their due diligence process to support a 20-year term senior debt financing and a related DOE Loan Guarantee.

In January, NGP announced that the 49.5-MW plant automatically shut down on January 17, due to a “ground fault” problem in the electrical control system. The initial inspection by the EPC contractor has determined that the plant automatically shut down due to a failure in the buried power cable system.

Power cables leading outward from the control building were improperly configured, causing excessive heat to build up, leading to eventual cable failure in an isolated portion of the power cable runs.

Cable repairs are expected to be fully completed to Unit Two and other electrical equipment on or before March 10, 2010 allowing the plant to be fully operational and are covered by a warranty provided under the EPC contract.

Newly drilled and tested, deep injection wells, 55-15 and 58-11, will allow production levels to be increased to between 36-40 MW shortly after the Faulkner 1 plant is returned to full service. New production Well 91-15, drilled to 8359 feet, is currently undergoing flow tests. Production pipeline and electrical service connections will take approximately two and a half months to complete.

John Hancock and the U.S. Department of Energy (DOE) are continuing with their due diligence process to support a 20-year term senior debt financing and a related DOE Loan Guarantee.

The results from the three new completed wells are to be incorporated into a resource update report by GeothermEx Inc. which is a necessary component of the due diligence review. Permanent financing is now expected to be completed by the end of March, 2010.”

Source: Company release via Renewable Energy World

Panax Geothermal managing director Bertus de Graaf together with federal Resources Minister Martin Ferguson, officially opened the Salamander-1 geothermal well on Friday.

Dr de Graaf said the company was on target to reach the target depth of 4000 metres this month, which means geothermal energy is well on its way to becoming a reality in Australia.

”Panax is now undoubtedly at the forefront of the geothermal market in Australia and is the closest to achieving commercialisation of base load geothermal energy,” he said.

The company plans to have a demonstration power plant in operation by 2011, subject to the results of Salamander-1.

Panax’s geothermal exploration has been bolstered by a $7 million federal government grant.

The well’s proximity to the National Electricity Market Management Company grid (NEMMCO) also means the project could power thousands of homes without needing new grid connections.

The Penola Project is the first geothermal well in Australia to test a Hot Sedimentary Aquifer (HSA), which extracts hot water from an existing aquifer or HSA reservoir.

Panax has a measured geothermal resource of 11,000 petajoules at the Penola Project which has the capacity to deliver hundreds of megawatts of zero-emission power.

The project covers an area of 493 square kilometres and is part of Panax’s larger Limestone Coast Geothermal Project, which covers a total area of 3127 square kilometres.

Panax’s focus is on exploring existing reservoirs containing hot geothermal fluids, which has fewer risks than hot fractured rock geothermal projects and a much shorter development time.”

Source: Sydney Morning Herald