The organizers now report that a record number of exhibitors have registered, with 160 companies presenting their companies, services and activities.

GeoTHERM is Europe’s leading trade fair accompanied by two congresses highlighting shallow and deep geothermal energy. At both days 44 experts inform about experiences as well as new developments of the geothermal sector.

On March 1st, the President of the International Geothermal Association (IGA), Prof. Dr. Roland Horne, will be the key speaker of GeoTHERM 2012.

Switzerland is this year’s guest of honour, and following the opening ceremony, Swiss specialists will be giving  an overview on the country’s activities.

The whole program is available online at: http://www.geotherm-offenburg.de/en/geothermal_congress

Given the international nature of the event, all congress presentations and speeches will be simultaneously translated into English, French and German. The translation is free of charge.

In combination with GeoTHERM, the 6th Meeting of the Geothermal Technology Panel of the RHC-Platform will take place on 1st of March 2012 in Offenburg as well.

Visitors of GeoTHERM benefit of the combination of trade fair and congress. The ticket is available for 38 EUR (ticket for one day) or 58 EUR (ticket for two days). Register online https://www.messe-offenburg.de/en/geotherm_registration/66 .

Location and address of GeoTHERM: Exhibition Center Offenburg (Messe Offenburg), Schutterwaelder Str. 3, 77656 Offenburg, Germany.

The organizer of GeoTHERM is the Exhibition Center Offenburg in Germany (Messe Offenburg).

Further information is available online in English, French and German www.geotherm-offenburg.de. For detailed questions please do not hesitate to contact the project team by
phone +49 (0)781 – 9226 – 32 or E-Mail geotherm@messeoffenburg.de.

Source: Press release by email

The European Investment Bank, the European Union’s long-term lending institution, will provide a EUR 1.1 million (US$ 1.4 million) grant to enhance detailed planning and study the feasibility of exporting electricity generated by geothermal energy from Dominica to neighbouring islands Martinique and Guadeloupe. Electricity generation using geothermal energy uses water heated to a high temperature using geothermal resources available near the surface. The EIB’s support will evaluate a possible northern submarine interconnection from Dominica to Guadeloupe and a second link to Martinique in the south. Once the feasibility of cross-border interconnections is determined, subsequent studies will define the characteristics of the sub-sea cables and assess the environmental impact of the planned interconnection.

“Ensuring the most effective use of geothermal energy as a sustainable source of electricity generation offers immense potential for transforming energy use and economic growth in the Caribbean. The European Investment Bank is pleased to contribute to overcoming specific technical and engineering challenges essential to lowering the energy costs in Dominica and to significantly increase electricity generation from renewable energy sources in the East Caribbean.” said Plutarchos Sakellaris, European Investment Bank Vice President.

“The European Investment Bank is a highly recognised and trusted development partner and so having the EIB on board in our geothermal development initiative is very instrumental in giving our programme the exposure necessary to attract the best in the geothermal business – contractors, consultants, experts and, of course, investors. As the Minister responsible for Energy, I thank the EIB for their continued interest in advancing our development objectives and look forward to strengthening the cooperation.” said Hon Rayburn Blackmoore, Minister for Public Works, Energy and Ports, Dominica.

“The launch of this phase of the project underpins the EU’s goal of making renewable energy a priority to achieve the Millennium Development Goals, more particularly in terms of poverty alleviation and eradication.” said Valeriano Díaz, Head of the Delegation of the European Union to Barbados and the Eastern Caribbean.

The European Investment Bank’s contribution will greatly assist a project that has the potential to develop a 20MW geothermal power generation plant for local use and a subsequent plant of up to 120 MW for export. Currently, the Government of Dominica, supported by the European Union and the Agence Française de Développement, is drilling three test wells in Laudat and Wotten-Waven to determine the potential of geothermal resources in the Roseau Valley and plans to build a 5MW test plant. Results gained from the exploratory drillings will allow greater understanding of the size and quality of geothermal resources that could be used. This information, along with results of the feasibility studies of interconnections funded by the European Investment Bank, will determine the most effective approach.[The drilling is conducted by Icelandic drilling company Iceland Drilling with drilling and exploration services by ISOR]

The project is to provide clean and sustainable energy for Dominica and neighbouring islands by allowing them to generate their electricity needs away from a primarily fossil fuel base to a renewable energy resource, become a significant income generator for Dominica, decrease its considerable foreign exchange expense of imported diesel and substantially lower energy costs for the island’s population. If successful, this project could become a model for other small island development states around the world that have geothermal potential.

The European Investment Bank has supported projects in the Caribbean for more than 40 years and contributes to improving sustainable energy in small island states around the world, most recently in Cape Verde and Vanuatu.”

Source: EIB via Caribbean Press Releases 

Charging of the R134a motive fluid into the power plant has been completed, and is undergoing integration testing. In preparation for starting the turbine, it was discovered that two large capacitors in the 2500 horsepower variable frequency drive which controls the motive fluid pump were found to be defective, and must be replaced prior to plant startup. The motive fluid pump, which circulates the R134a through the vaporizers and condensers, is a primary component in the binary cycle system.

Our EPC contractor has located replacement capacitors and expects to resume commissioning the turbine within the next 7 days. Once the turbine is commissioned, the plant will undergo performance and capacity testing prior to achieving commercial operation.”

Source: Company release via Finanznachrichten

The Ormat Technology project could add to a raft of geothermal power projects worth hundreds of millions of dollars in the central North Island recently completed or planned by big players such as Contact Energy and state-owned Mighty River Power.

The investment by Tikitere Ltd Partnership, wholly owned by Ormat Technology, was approved by the OIO in December.

Under the proposal, the subsidiary would work with three Maori land trusts – Tikitere, Paehinahina Mourea and Manupirua Ahu Whenua, known as Tikitere Geothermal Power Ltd – to build and run the station on 900 hectares between Lake Rotoiti and State Highway 30.

Tikitere Ltd Partnership has agreed ownership and operation of the station and any interest in the land would revert to the trusts after 14 years.

However, a group of shareholders from the three trusts says the project could be delayed because of inadequate consultation. After Maori Land Court hearings, the group has lodged an application to the Court of Appeal to have the trustees who signed the deal with Ormat removed.

“The shareholders are not against the project in principle but … communication and consultation between trustees and shareholders has been totally lacking,” a spokesman for the group said.

“The shareholders now see a big international company moving in on their land without having talked directly to the people who live there.”

There was also concern over whether Ormat would return ownership to the trusts after 14 years, he said. And resource consents had not been granted.

“It is not a done deal and there is still a long, long way to go before any holes are drilled.”

A Tikitere Ltd spokesman said several conditions, including resource consent, still had to be met before construction would begin. The investment criterion had been one of the conditions.

The $200 million funding by Ormat represented expenditure over the life period of the power station, and not only the construction cost, he said.”

Source: Stuff.nz

Colombia’s mining and energy minister, Mauricio Cardenas, and Ecuador’s electricity and renewable energy minister, Esteban Albornoz Vintimilla, said they would contribute equally to the $4 million study with the aim of jointly developing a gethermal power facility generating up to 150 MW.

The ministers said in a joint statement after meeting in the Colombian capital Bogota that the three volcanoes to be studied are Chiles, Tufino and Cerro Negro, located in the western Andes of the two nations’ common border. The study will be complete by the end of 2013, they said.”

Source: Platts

Registration is now open GeoPower Mexico attendees can either attend the plenary session on day one followed by the GeoPower Mexico meeting, or attend the full two days of MIREC to benefit from conference sessions covering finance and supply chain issues and the roundtable networking discussions on 16 May .

Ver la información en Español

Mexico is a world leader in geothermal installed capacity, and is working to increase the percentage of energy provided by this critical resource. Join us at GeoPower Mexico for a unique opportunity to debate the future, both public and private sector, of geothermal generation in the region.

Key Insights

Understanding the Mexican Resource, with speakers including:

• Gerardo Hiriart, Chief Executive Officer, ENAL
• Luis C.A. Gutiérrez-Negrín, Vice President, Mexican Geothermal Association

Possibilities for Private Geothermal Development, with speakers including:

• Enrique Guzman Lara, Deputy Director General of Electricity and Renewable Energy, CRE
• José Luis Quijano, Treasurer, Mexican Geothermal Association

“SEG has operated at an average capacity factor of above 97% since commencement of operations in 2000, which compares quite favorably with the global geothermal power industry average. Its energy sales are based on a long term contract with the state power utility, PT Perusahaan Listrik Negara, which provides for tariff adjustments for movements in exchange rates and inflation.

SEG is exposed to geological risks inherent to operating in an active seismic area, and its single site operation further augments this risk. Fitch however notes that this risk is mitigated to some extent as SEG’s insurance policies cover most plant costs, as well as 24 months of business interruption.

SEG has scaled down its capex for Unit 3. As per the revised plan, Unit 3 will now consist of 60MW of generation capacity (127MW originally) and is estimated to cost around USD190m (USD90m lower than the original capex budget). Fitch however notes that an EPC contract for the construction of Unit 3 is still not in place, and the company is still in the process of verifying sufficient thermal resources to support Unit 3′s additional capacity. The company expects to award the EPC contract, following verification of sufficient thermal resources, by end-2012. ”

For the full article see link below

Source: Reuters

The BLM will accept public comments on the EA through close of business on February 28, 2012.

The proposed geothermal exploration project consists of approximately 4,880 acres of public lands within the lease area. Ormat would limit geothermal exploration activities to a smaller area (referred to as the project area) within the lease area. The project area is approximately 610 acres. The EA analyzes potential impacts from the proposed exploration and testing activities proposed by Ormat. The primary objective of the project is to further evaluate the characteristics of the geothermal resources in the Tungsten Mountain Project Area.

The proposed activities include:

• Construction of a new access roads
• Upgrading existing access roads and mineral material pits
• Constructing of up to 27 well pads
• Drilling exploration, temperature gradient and observation wells
• Two water supply wells
• Production wells may be drilled if commercial potential is present
• A total of 27 geothermal wells and one or more water supply wells at one or more drill sites

The EA is available on-line at: www.blm.gov/nv/st/en/fo/carson_city_field/blm_information/nepa.html.

Written comments should be addressed to Steve “Chip” Kramer, Planning & Environmental Coordinator, BLM-Stillwater Field Office, 5665 Morgan Mill Road, Carson City, NV 89701. Comments may also be sent via e-mail to skramer@blm.gov.”

Source: BLM announcement via MyNews4 

The event will take place in Pisa on the 29th of March 2012. PhD students working in the field of geothermal research are all invited to take part, not only in geosciences , but also including engineering, chemistry, business, law, etc.

Details and registration via: http://3rdgeothermalphdday.oneminutesite.it/

The plan is to have a conference with a short presentation from each participant as well as a poster session.There will be also a visit to Larderello geothermal site, more information will be given as soon as possible,

It’s our hope that this event will be as successful as the last ones.

Participation in the 1 day program will be free of charge.  The charge of the trip will depend on funding and group size.

Deadline for application is the 1st of february for the field trip and for the request of funding.

Deadline for application to the PhD day is the 15th of february.

If you have any questions or ideas on this event do not hesitate to contact me (sara.focaccia2@unibo.it)

Induced seismicity is typically defined as small scale microseismic events which can accompany a number of industrial and energy activities. During the process of creating an underground heat exchanger in an EGS reservoir, stress patterns in the rock may change, resulting in microseismic events. In almost all cases, these events are of relatively small magnitude, and by the time the energy reaches the surface, the vast majority are rarely felt.

To promote the safety of Enhanced Geothermal Systems (EGS) projects and to help gain acceptance from the general public for geothermal activities in general, and EGS projects specifically, this Protocol clarifies the role and risks of induced seismicity, which can occur during the development stages of an EGS reservoir and the subsequent extraction of geothermal energy.

This Protocol provides a set of guidance detailing useful steps geothermal project proponents can take to address induced seismicity issues. The procedures are not prescriptive, but suggest an approach to engage and inform public officials, industry, regulators, and the general public. The procedures promote public safety and proactive sharing of information.

By establishing a framework for communication and emphasizing stakeholder needs, the Protocol will facilitate the successful deployment of EGS projects, thus increasing the availability of clean, renewable and baseload energy in the United States.

Read the updated Protocol (pdf)

Source: DOE, Geothermal Technologies Program

Participants will spend the morning learning about steps leading up to a successful geothermal project, technologies for conventional geothermal engineering and drilling, and what must be done to ensure successful project development. Additional discuss topics include the outlook for the geothermal market in 2012, the business and economics of geothermal development, and California’s geothermal industry. Karl Gawell, GEA Executive Director, will serve as one of four course instructors.

“It’s fitting that this workshop will be held in California, an industry leader and a state that has paved the way for geothermal innovation and development,” said Gawell. “Participants will gain a full understanding of geothermal and hopefully use that knowledge to benefit the industry in the future.”

Additional course instructors include Louis Capuano, Jr., founder of ThermaSource, Inc., John McKinsey, chair of the Geothermal Energy practice at Stoel Rives, LLP, and Maria Richards, coordinator of the SMU Geothermal Laboratory.

California, which was the first U.S. state to build a commercial geothermal site, continues to lead the way for the U.S. geothermal industry. In 2010, geothermal provided 42% of California’s commercial in-state renewable electricity generation, and if the Golden State were its own country, it would lead the world in geothermal power production with over 2,500 MW of installed capacity.

The Renewable Energy World North American Conference will be held from February 14-16 at the Long Beach Convention Center.  Additional geothermal features at the conference include a Geothermal Track on February 15 and 16.  On the Expo Floor, the GEA’s booth will provide information on the basics of geothermal energy, current geothermal energy projects and industry issues, and GEA membership and events.  Visitors can take a GEA “passport” to other booths featuring geothermal for a chance to win a Kindle Fire.

On Wednesday, February 15, Geothermal Track attendees will hear papers and presentations on innovative geothermal power plant systems and technology that increase resource efficiency and offer more dynamic load support to utilities.  Presentations from: Halley Dickey, TAS Energy; Josh Nordquist, Ormat Technologies; Harvey Wen, Bechtel Power Corp.; Gary Zyhowski, Honeywell; and Mike Ronzello, Pratt and Whitney Power Systems.

A second session will highlight geothermal policy and economics, exploring the role of federal and state governments and what industry needs in order to accelerate growth.  Speakers: Karl Gawell, Geothermal Energy Association; John McIlveen, Jacob Securities Inc.; and Halley Dickey, TAS Energy.

On Thursday, February 16, a paper-and-presentation session will feature how geothermal energy developers increasingly use waste heat recovery and the Organic Rankine Cycle for increased efficiency.  Speakers: A. Scott Weber, University of Buffalo; Bruno Vanslambrouck, HOWEST, University College of West Flanders; Joe Lillard, Atlas Copco Mafi-Trench; and Kelsey Walker, TAS Energy.

To attend the GEA workshop or for more information, please visithttp://www.renewableenergyworld-events.com/index/registration-information.html.

“For BacMan, the base case assumption is that the plant would run in September this year. We were hoping to get it running by July last year but we started running one unit last December and there are really some issues you will find in the unit after it hasn’t run in five to seven years,” EDC President and Chief Operating Officer Richard B. Tantoco told reporters in an interview.

He added the company is optimistic it will be able to put the geothermal plant back on line soon.

EDC won the bid for the operations of the power plant for $28.5 million in 2010. The company provides steam to the BacMan plant.

Rehabilitation work began in May 2010 right after EDC won the contract. It was originally planned to finish in as early as 18 months.

BacMan is located in Bacon, Sorsogon and Manito, Albay. The 110-MW (megawatt) BacMan I geothermal plants was commissioned in 1993 while the 40-MW BacMan II plants were commissioned in 1998.

It had a capacity of 150 MW. However, due to the damage to one of the units last year, only 130 MW can be restored.

Since last year, BacMan has been shut down.

EDC is also shutting down one of its other geothermal complexes consisting of the 305-MW Tongonan I geothermal power plant and the 192-MW Palinpinon geothermal plant in Leyte.

The company will rehabilitate two units of Palinpinon and two units of Tongonan.

“Four units of Palinpinon-Tongonan will go down. That’s scheduled until the end of March and June. We’re doing fairly significant work on those so we can finish within the year,” Mr. Tantoco said.

“The issue with Palinpinon, however, is the equipment is very old so we’re tearing down the entire cooling system and putting in brand new ones” he said.

EDC’s subsidiary Green Core Geothermal, Inc. won the bid to operate the power plant in 2009 for $220 million.”

Source: Business World Online

The GRC membership took part in the ballot in the late fall, and the Inspector Committee, consisting of Board of Directors’ Marilyn Nemzer and Paul Brophy, met at the GRC headquarters in Davis, California, to count the votes in early January.

The result was that two new members of the Board were elected.

Patrick Hanson works for Scientific Drilling International in Houston, Texas, as their Global Geothermal Marketing Representative. He has been particularly visible at GRC Annual Meetings as chair of the Fund Raising committee and of the Golf Tournament committee.

Andy Sabin is Director of the Navy Geothermal Program Office, China Lake, in California. At the last GRC Annual Meeting in San Diego, Andy was Chair of the Technical Program committee.

Source: GRC release via SFGate

Additional grant funding available from CNMI for the amount of USD 500,000 to support follow-on assessment work (Stage Two Additional Assessment Work) if warranted and approved by CUC following the determination of the Stage One Geothermal Gradient Project. Previous studies undertaken by Southern Methodist University (USA) and National Renewable Energy Laboratory (USA) identify potential geothermal targets and rate geothermal as high impact on CNMI future power mix if resource can be identified.

Current base load diesel generation 30 MW and Peak load 45 MW. Compelling economics to replace diesel with geothermal base load power. The success of the Saipan tender builds on the company strategy to become a significant player in the development of geothermal energy to displace high cost diesel generation in remote grid locations.

Commenting on the successful tender, managing director David McDonald said, “I am very proud of the team effort to secure this tender in Saipan. We have stayed consistent to our plan of seeking projects where a potential geothermal target exists and the market dynamics offer a compelling reason to investigate. This project was identified by KUTh before any grants were announced and initial reconnaissance has paid off. This allowed us to get a head start on the RFP process and to show a commitment that earned the respect of people in Saipan”.

David further commented that “the geotechnical programs and extensive geothermal gradient drilling that we have undertaken in Tasmania has demonstrated our ability to take a green field geothermal play and implement structured exploration programs to pinpoint a geothermal drilling target. There is also no question that our exposure to the Vanuatu project has extended our role into volcanic hosted geothermal plays and broadened our contacts through the geothermal development chain. It has also highlighted our ability to work through the issues related to remote grid power development. All these issues will be important as we progress through the various steps of the Saipan project. The inclusion of the exclusive concession to the company for the development of geothermal on Saipan will allow the company to conduct a structured exploration program with clear security of tenure. We are looking forward to working with the CUC team and its technical advisors as we implement the first stage funded geothermal gradient project”.

Saipan – Commonwealth of the Northern Marianas

Situated north of Guam in the Pacific Ocean, the Commonwealth of the Northern Mariana Islands (CNMI) comprises 14 islands. Saipan (the capital), Rota, and Tinian are the main islands. CNMI is a self-governing US territory and the US President is its Head of State. The government of Saipan has secured funding from the US government to support the geothermal exploration Stage One works being undertaken by KUTh.

Source: Company release by email

The University now announces the 2012 National Geothermal Academy, an 8-week intensive summer course in all aspects of geothermal energy development and utilization. The course is offered for 6 credits at either the undergraduate or graduate level. Individual weeks are offered as professional development. In summer 2012 Modules 2,3,4 or 5,6,7 are offered as 3 credit sections.

The program starts with an introduction to Geothermal Energy Utilization in June 2012 and close with “Environmental Policy and Geothermal Business Principles & Development” in August 2012.

The program features industry leaders from all angles of the business and guarantee not only academic but also real business value.

For Details and the actual program see: University of Nevada, Reno, National Geothermal Academy

The draft Ministerial decree, implementing the Legislative Decree 28/2011, would set insufficient support for geothermal electricity. According to UGI, the national geothermal association of Italy, such a very low support would undermine the development of the sector after that the liberalisation of the geothermal resources in 2010 has triggered a boom of 110 permission requests for exploration over the last two years.

In this regard, a meeting is convened in order to gather all stakeholders and professionals involved in the sector and to take further steps towards policy-makers and national authorities. The meeting will be held in Rome on the 31^st of January 2012. For further information contact: info@unionegeotermica.it”

Source: EGEC

Geologists are now using a combination of new exploration technologies and historically available technologies applied in unique combinations to determine the geothermal potential in an area of interest. The webinar will focus on the applications of these combinations, which include:

• seismology, which began with a significant role in the oil and gas industry,
• gravimetry studies, which can identify granite bodies that are indicators of geothermal potential,
• tellurics and magnetotellurics, which can detect resistivity anomalies associated with productive geothermal structures, and
• geochemistry, which relates surface fluid properties and geologic data to geothermal bodies

The 60 minute webinar is are part of GTP’s activities to build on the technical research base that DOE has developed over the last two decades. This technical base will provide information and understanding necessary to create new and more efficient and reliable technologies and to enable the U.S. geothermal industry to compete for baseload electricity generation.”

Source & Registration: https://www1.gotomeeting.com/register/451246161

Final repair operations recommenced in early December after a 4 month break to allow for design of the repair program and to schedule the specialized drilling equipment that was required to complete the repair. The 13 3/8″ steel production casing was removed and replaced from 585 feet deep in the well back up to surface, in order to repair a separation in the casing that prevented installation of the production pump. RRG-2 returned to production on January 6, and after balancing the well field, the power plant is running at over 10 megawatts under current conditions. The well is producing brine at 277 degrees F (136 degrees Celsius) and continues to heat up.”

Source: Company release via Marketwatch

Chevron has partnered with the Philippines since 1971—first as Philippine Geothermal Inc., then Unocal Philippines Inc. in 2004, and now as CGPHI since 2006. In that time, Chevron has become the world’s largest producer of geothermal energy.

“Our 40 years of partnership with stakeholders is a testament to the significant role we have played in delivering energy where we work,” said Jeff Shellebarger, managing director of Chevron’s IndoAsia business unit. “Working together, we help generate not only essential power to our communities but also to the industrial and commercial customers that drive the nation’s economic growth.”

To commemorate the event, employees at Mak-Ban Field helped construct 13 new homes for families displaced by Typhoon Ondoy. Tiwi employees celebrated with a community fun run and after-party. In addition, an anniversary book was created to captures CGPHI’s rich history—a testament to “our employees’ legacy of hard work, discipline, integrity and passion for excellence,” said Tony Yee, CGPHI president and general manager.

To learn more about Chevron’s operations in the Philippines, please visit: http://www.chevron.com/countries/philippines/

Congratulations Chevron. Now we only need to get you involved in other countries, maybe even in your home country the United States?

Source: Chevron @Facebook

According to EDC president and COO Richard B. Tantoco, the company is now set to begin in 2012 all the necessary geological and geophysical surveys that will help identify specific areas where it can best drill the wells.

These surveys would include fault mapping, fluid chemistry, rock analysis and metallurgic surveys, among others, he said in a briefing on Wednesday.

“It’s all pre-work activities that will tell you where you should drill, so you can maximize your chances of getting good wells. We have about a year before we start actual drilling of wells,” Tantoco said.

“The drilling of each well could take about 70 to 80 days. This will be followed by the testing of wells for about 90 days. The drillings and testings could take a year, maybe a little more, depending on rig availability within Latin America. It is only after that can you set up the power plant. Our general rule of thumb is from the time we get the concession contract to the time we generate the actual kilowatt-hours, it could take as long as six to seven years,” Tantoco explained.

EDC has since prepared for this venture as it has already set up office in Chile through EDC Chile Ltd., a limited liability company, which has the purpose of exploring, evaluating and extracting mineral or substance to generate geothermal energy. The company has earlier submitted applications for 13 concession areas in Chile and submitted bids for five other blocks, also in the same country.

Meanwhile, Tantoco also disclosed that EDC would finally sign within January a joint-venture agreement with Australian firm Hot Rock Ltd. for the development of two concession areas in Chile and another two in Peru.

This agreement will seal EDC’s acquisition of a 70 percent interest in each of the concession areas. “We’re just finalizing discussions,” Tantoco said.
In November 2011, the EDC signed a heads-of-terms agreement with Hot Rock for the acquisition of rights over the geothermal areas in Calerias and Longavi in Chile and the Quellaapatcheta and Chocopata regions in Peru.

EDC is currently also the world’s largest integrated producer of geothermal power and the acknowledged global leader in wet steam technology. It is currently engaged in the exploration, development and optimization of geothermal fields, as well as the operation and maintenance of geothermal power plants with an aggregate capacity of 1,130 megawatts.”

Source: Business Inquirer

As usual the call for federal support is mentioned, here the federal tax credit, but also the favourable renewable energy scheme that creates a demand for renewable base-load power.

There is a global growth in geothermal development, but it seems like the U.S. is lagging behind the big drive in Asia, South America, Africa and other parts of the world.

The problems in the U.S. are various. The stimulus funding that had helped push the industry through the 2008/ 2009 financial crisis, has mostly been spent or is running out. The loan guarantee did not help as much as hoped simply as most of the projects had not reached the required stage in development in time to qualify. The ongoing uncertainty about federal tax credits is also not providing any comfort. With production tax credit always being limited for a time frame there is no certainty for developers for the long run. The current Renewable Energy Production Tax Credits are set to expire in December 2013.

Geothermal Energy is still a valid, popular energy source as it provides utilities under the Portfolio Standard scheme in California a valid base-load power source option to help fulfill the required renewable energy sourcing requirement under the scheme. But at the same time the projects take a long time and utilities need some of those plants to come online a lot faster than they currently do.

This is at the same time tricky with a lack in funding for the most critical part of the geothermal development process, the drilling phase. Drilling finance is the most crucial elements as it essentially moves the project from an early-stage project to a bankable project for construction. In this sense a step of German re-insurance giant MunichRE can be seen as a positive step as it would provide an insurance product to the drilling that might help attract investors or banks to take part in financing drilling for developers.

On the other hand there are several voices that state that the industry in general is at cross-roads and would need a new approach both in gaining more government support, but at the same time become generally more attractive and accepted by key stakeholders, among them clearly banks and investors.

Government can and should play a role in helping the industry in the particularly critically early phases. While mapping and R&D efforts are clearly useful elements, until this day drilling and the need for attracting investment and finance for it has not been addressed adequately through politics in the U.S.  Schemes in other countries and concepts discussed, e.g. at last year’s GRC Annual Meeting, could provide a support scheme that might not even be a big burden on the stretched government finances.

The Forum in San Francisco also discussed the idea of a Geothermal Task Force for California that could take forward ideas, develop concepts, and engage in discussions with politics on what would be needed to help push development and abolish existing hurdles for development.

At the end of the day it is also the discussion of what the industry can do better to gain a better traction in politics and gain more support or at least attracting the same support as other renewable energy technologies have been able to enjoy over the years.

Marketing and representation is clearly one element in this and several groups have been discussing on what the industry can do … a “Got Milk”-style campaign was mentioned, the naming of the different utilization options of geothermal energy (power, heat, geo-exchange), promotion, press work etc … we need to stick together to get the message across that Geothermal Energy is “THE RIGHT THING TO DO”.

The work of the industry associations, and I know I am somewhat biased, is in this sense crucial and industry needs to support the associations in their work to promote and lobby on behalf of the industry. They provide the tool and structure for a unified voice towards the public, government and other potential stakeholders for the industry.

Source in parts: Clean Technica

The total geothermal power capacity in the world is 10,710 MW as of 2010. Because geothermal development is gaining momentum in the world owing to increasing energy demand, necessity to reduce carbon dioxide emissions and soaring fossil fuel prices, geothermal power capacity is expected to grow at a rate of 1,000 MW per year until 2015.

MHI has supplied a total of 100 geothermal power generation systems, notably large-scale flash cycle systems having an electric output of about 50 MW. It will increase proposal and delivery of full turnkey design and construction projects by use of its worldwide network. The company will also actively promote supply of individual components.”

Source: Eco-Business

In the court’s decision following the claim of two drilling companies, the court confirms that certain criteria had not been made public as part of the tender documentation. The claimants correctly claimed that there was not sufficient transparency and the court decided that either the whole tender phase or the whole process for the call of tenders will have to be repeated.

In the tender phase only the successful company and the claimants would have to provide their tenders. The now planned open process requires that all companies will be able to bid again, which will lead to a better competitive situation. This way the city council hopes that there will be more competitive offers. For this process to start, the courts decision will have to be legally confirmed.

If the call for tender processes after plan and there will be no further claims filed, drilling is expected to start after the summer break. The drill pad is then expected to be set up in early summer 2012.

Source: City of St. Gallen via Tiefe Geothermie , more details on the actual court case via Tiefe Geothermie (all in German)

Following a strong uptake of the SPP, the Geodynamics Board has authorised acceptance of applications up to the maximum amount of $6.2 million, raising a total of $10 million through the SPP and institutional placement. Together with the recent placement, funds raised from the SPP will be used to progress the Company’s Cooper Basin Geothermal Project, commencing with drilling Habanero 4 planned for spudding in February 2012.

The SPP and institutional placement were conducted by joint lead managers RBS Morgans and Austock. Geodynamics’ Managing Director and Chief Executive Officer Geoff Ward said, “The
ongoing support from Geodynamics’ shareholders is very much appreciated. As we wish to accommodate shareholders to the greatest extent possible, the Geodynamics Board has decided to accept applications up to the maximum amount under the plan.”

“Geodynamics remains in a strong position to continue the development of the Habanero Deeps Enhanced Geothermal Systems (EGS) project and we look forward to a year of significant field activity, commencing with the drilling of Habanero 4.” Allotment of shares under the SPP will occur on 30 January 2012. Applicants will be advised of the issue price of shares under the SPP following the 5 day VWAP (Volume Weighted Average Price) period and of their final allocations with holding statements expected to be dispatched on 2 February 2012.

Source: Company release (pdf)

The findings are interesting not only for the geothermal industry that sees its high capacity factors as one of the key selling arguments. While the research shows that geothermal energy is still a very favorable base-load capacity energy source for utilities world-wide, capacity factors are often not as high as they theoretically could be.

Building on the vast resources collected over the year, the research done by Bloomberg New Energy Finance for this study is quite thorough and looked at 71 geothermal fields globally.

For a global average, BNEF quotes a capacity factor of 73% and correctly notes that developers use much higher capacity factors for their project finance models. Higher resource temperatures statistically increase capacity factors at a rate of around 1% per 10 degrees Celsius. The performance of the different fields varies widely, with Iceland, Mexico and Indonesia representing the highest capacity factors. The age of the plants in Japan and the Philippines is mentioned as a reason for the lower capacity factors in both countries, through decreasing productivity of geothermal fields over time.

In detail the report goes into general trends of plant performance, performance by technology, country and developers.

In an interview with Mark Taylor the Head of Geothermal at Bloomberg New Energy Finance, he said, that “the findings might not be ideal for the industry, but geothermal energy is still base-load given its 90% availability. Also utilities in the U.S. still favor Geothermal and consider it a viable base-load option. This means that developers can still secure healthy power purchase agreements (PPA) and capital should be available for good projects.”

For financial institutions, capacity factors are important and information like that provided by Bloomberg New Energy Finance is crucial for the questions investors need to ask and developers need to be prepared to answer. “Lower than expected capacity factors could though mean difficulties with regards to not meeting PPA contract requirements, as well as meeting debt and interest payments through a decrease in revenues,” Mark Taylor added.

Geothermal development always has a risk element when it comes to resource assessment, drilling and planning, but the report by Bloomberg shows that it is crucial to be conservative in estimates as they determine the underlying contractual terms of the PPA, but also the availability of financing.

Again – and I mentioned this in various presentations these past 12 months – it is the question about the necessity about being conservative and successful, rather than overpromise and not live up to estimates given. The geothermal reporting codes by Australia and Canada are providing a codified approach to reporting of resource assessments that could help create investor confidence in projects, but also be one helpful element in securing PPAs that live up to expectations on both sides.

So today I am starting with the top 10 news read by visitors to the website from January 1, 2011 to December 31, 2011.

1. Australian KUth Energy commences activities in Vanuatu, released Dec. 4, 2009
2. The story of Potter Drilling, new geothermal drilling technology for EGS, released Apr.10, 2009
3. KPMG releases Global Geothermal Market Report, released Feb. 8, 2011
4. Turkey sets new feed-in-tariff, released Jan. 4, 2011
5. Geothermal Exchange Organization, voice for U.S. Geothermal Heating & Cooling Industry, released Feb. 2, 2011
6. Malaysia with geothermal potential at Tawau, Sabah, released Jul. 24, 2009
7. Chile awards 17 geothermal exploration licenses, released Feb. 2, 2010
8. South Africa exploring options for geothermal power, released Oct. 19, 2010
9. ISOR & Iceland Drilling shipping equipment to project in Dominica, released Nov. 9, 2011
10. Geothermal energy investment and its risk, released Mar. 14, 2010

Vranjska Banja is the hottest geothermal spring in Serbia, with discharge temperatures of 96°C (boiling at discharge elevation). Exploration drilling of two intermediate depth wells (VG-2 and VG-3) in the early 1990′s reportedly encountered temperatures of up to 137°C at less than one kilometre depth. Both wells were cased to 800-900 metres depth (high temperature intervals were not isolated), and have relatively high artesian flows together averaging approximately 60 litres per second.

GeothermEx reviewed the available information on the geothermal resource at Vranjska Banja (including the existing VG-2 and VG-3 geothermal wells), and concluded that a resource temperature of approximately 150°C is possible at depths of about 2,000m. Wellbore modelling calculated that a full-diameter well encountering reservoir conditions similar to those intercepted in VG-2 and VG-3 would have a net production capacity of approximately 3 MW.

GeothermEx estimated that the heat resource within the 300-400 hectare area immediately around Vranjska Banja spa is equivalent to at least 10 MW and possibly up to 20 MW. The Company plans additional geophysical surveys and shallow temperature gradient drilling within the license area as the first steps to upgrade this resource into a known reserve and to determine the resource potential of the rest of the license area.

Miljana Vidovic, President and CEO of Reservoir commented: “We are very pleased with these results and GeothermEx’s validation of our work to date at Vranjska Banja. The existing geothermal wells make this a relatively low-risk play technically and the high capacity factors typical of geothermal plants could make this a very material addition to our hydro portfolio.”

The 1,750 hectare exploration permit for Vranjska Banja surrounds the 2 hectare exploitation permit encompassing the two existing geothermal wells: VG-2 and VG-3. The Company has an agreement under which it has completed well testing and resource studies on these wells, in addition to mapping, sampling and geophysical surveys on its own exploration license.”

Source: Company release via Marketwire

Particularly the western region of Romania has several areas with geothermal potential, namely Arad, Timisoara, and Oradea. But Romania would first needed to develop a detailed map of its geothermal resource potential.

On financing these kind of projects, he mentioned that there are non-refundable funds earmarked for Romania by the countries of the European Economic Area, here Norway, Iceland and Liechtenstein that could be used for this purpose.

A project serving 80,000-100,000 people, would have a large impact reducing CO2 emissions in a region that currently depends heavily on Russian gas imports that have risen dramatically in price over the last decade.

Source: ActMedia

The company had lodged geothermal exploration licenses applications over three locations in Papua New Guinea, but was advised by the Mining Advisory Coouncil in 2009 that the applications could not be processed until such time as the PNG government set up a regulatory framework for the exploration and development of geothermal energy. KPNG has its applications in current status pending the set-up of the proposed regulatory framework.

In the key terms of the MOU KUTh Energy PNG and KULA Energy, the companies agreed in an equity investment by KULA to accelerate securing exploration licenses over the application areas lodged by KPNG, KULA will have an initial period of 12 months ending December 31, 2012 to secure one or more of the KPNG exploration license applications (one of which must be Talasea application area) and in return will earn a 49.8% share in KPNG if this condition is met. If KULA does not meet the conditions of securing the licenses noted, it may seek an extension of the time or alternatively may exercise an option to buy all KUTh shares held in KPNG for $502,000.

KULA consists of principals Julian Malnic and John Bishop and has also engaged other management staff to assist in the on-ground licence pursuit. Julian Malnic is no stranger to PNG and the mining sector. He is the founding shareholder of Nautilus Minerals Inc. and Executive Chairman of Direct Nickel, both companies having activities in PNG. He has a long family connection to PNG and his passion to make a real impact on the renewable power sector is a key factor in KPNG considering cooperation with KULA.

John Bishop also has extensive experience in the mining sector and, as one of the founding shareholders of KUTh, continues to have a passion and drive for the development of geothermal around the world. As a director of KUTh, John has not participated in any board decisions concerning the MOU or in the negotiation of the final MOU terms.

The board of KUTh has been evaluating projects and building a pipeline of opportunities. KUTh management sees the need to dedicate resources to the more advanced projects to ensure the best chance of success. The resource potential in PNG is attractive but considerable work will need to be performed to secure the regulatory, landowner, political and market support. The board considers that at this point in the company’s development, capital funding and human resource allocation is a key priority and the expansion of the project portfolio will be better served by alignment and association with collaborators that bring expertise and support funding to move potential projects to the next stage.

Commenting on the signing of the MOU, managing director David McDonald said, “I am pleased that we have been able to reach this agreement with KULA and I know that they are already actively running with this. We recognise the resource potential in PNG and we are keen to see this project moved to the next stage. We are equally aware that the progress now being made in Vanuatu and a number of other target areas means that we
have to focus our limited capital and resources. This style of cooperation has the effect of extending our reach through collaboration. We will support the KULA team in their pursuit of these licences but the on ground driving will need to come from them”

Source: Company release (pdf)

“The permit is still being processed,” Banyumas Energy and Mineral Resources Office chief, Anton Adi Wahyono, said yesterday.

Additionally, the project investor, PT Sejahtera Alam Energy (SAE), must replace the protected forest area that will be exploited. The project is estimated to require 50 hectares of land on the slopes of Mt. Slamet. Therefore, the company must restore 100 hectares of land.

PT SAE’s general manager Petto Rashito, said that he accepted the policy. “But it shouldn’t be delayed. The longer the permit takes to be issued the higher the investment,” he said, assuring that the project was safe despite the planned excavation on the active slopes
of Mt. Slamet. “There’s no difference in excavating an active mountain or a non-active one,” he said.

He also said that Indonesia had the biggest geothermal electricity potential in the world, totaling 30 gigawatts or 40 percent of total global potential. “However, only 1,189 MW has been utilized,” he said.”

Source: TempoInteractive

The decision is for the BLM to implement the Proposed Action alternative. The geothermal exploration project is in Dixie Valley, Churchill County, Nevada, approximately 75 miles northeast of the City of Fallon.

The EA analyzed potential impacts on the natural and human environment that could result from implementation of the geothermal exploration and testing project on federal lands. The primary objective of the project is to further evaluate the characteristics of the geothermal resources in the Dixie Meadows Project area.

The proposed activities include:

• Constructing new access roads
• Upgrading existing access roads
• Constructing up to 20 well pads
• Drilling and completing temperature gradient wells, observation wells, production wells and 1-2 water wells
• Expand one minerals material site and construct one new materials site
• Install a temporary above-ground water distribution pipeline
• Construct or install necessary ancillary facilities including a temporary personnel camp

A determination has been made that implementation of the Proposed Action would not result in “significant environmental impacts,” to the natural and human environment, therefore a Finding of No Significant Impact (FONSI) has been prepared separately to document that determination, and a Decision Record has been issued providing the rational for approving The Proposed Action Alternative.”

Source: BLM announcement via News4

The event was held at the Marriott Marquis San Francisco January 18, 2012.” The event focused discussions on the issues and opportunities in geothermal including how to accelerate the slow growth of the industry, whether Congress will extend tax incentives, how to improve project economics, and more. “While analysts projected continued growth for the industry in the US and worldwide, the industry still struggles with the overall poor economy and federal and state policies that don’t match industry development needs,” said GEA Executive Director Karl Gawell.

Keynote presenters included Karen Douglas, Commissioner, California Energy Commission (CEC); Michael Picker, Senior Advisor to the Governor for Renewable Energy Facilities, State of California; Anne Simpson, Senior Portfolio Manager for Corporate Governance, California Public Employees’ Retirement System (Calpers); industry panels featured Gevan Reeves, Director, Strategic Origination, Calpine Corporation; Luka Erceg, President and CEO, Simbol Materials; Halley Dickey, Director Geothermal Business Development, TAS Energy; Mike Ranz, President, SNC-Lavalin Thermal Power; and Jonathan Weisgall, MidAmerican Energy Holdings Company.

The GEA Finance Forum was made possible in part by Gold Level sponsor SNC Lavalin, a company with a team that has successfully completed over 60,000 MW of thermal power projects worldwide, while also committed to achieving a superior financial return for its shareholders. “The involvement of leading global companies, like SNC Lavalin, in the geothermal industry is a positive sign for its future outlook,” Gawell noted.

An overarching theme at the event was the mismatch with government policies. While California state energy goals will require significant new renewable energy production in coming years, utility procurement and transmission processes did not account for the long-lead times of geothermal projects. And, for project finance, federal tax credits expiring at the end of 2013 mean that many new power plants cannot count on federal help. A geothermal project may have at least 4 to 8 years of lead time before the resource is on tap, and with the credit expiring in two years many new projects hang in the balance as Washington debates whether or not to extend renewable energy tax incentives, several speakers noted.

“While our technologies are not literally at their tax incentive cliff – they have until December 21, 2013 to put new projects into production — for all practical purposes the production tax incentive is having declining effect. A utility scale project starting today would find it nearly impossible to be completed by the end of 2013. To spur continued growth in geothermal, and build on the success of the Energy Policy Act of 2005, we would urge Congress to extending tax credits through at least 2016 for geothermal,” Gawell said.

Important conversations at the GEA Finance Forum covered technological advancements, as well as challenges in siting and transmission. There was also spirited discussion of approaches to reduce industry risk, including possible new insurance schemes and feed-in tariffs.

California is a policy leader in the United States with one of the most ambitious Renewable Portfolio Standards in the country. The state’s landmark renewable energy standard legislation was signed into law by Gov. Jerry Brown this year, and will require California utilities to provide at least a third of their electricity from clean and safe renewable sources like geothermal by the year 2020, and the state’s climate law will require even more by 2030 and beyond.

The need for new geothermal power in California was underscored by CEC Commissioner Douglas. She explained that in the coming decades California would not just need to meet increasing RPS and climate goals, but also replace its nuclear power plants and imported coal power. She remarked: “As we move toward our long term goals, we can’t think about renewable energy as all being the same, because a system that has a balanced mix of geothermal, biomass, solar thermal, PV and wind will function very differently and will be able to fill the needs we see in our infrastructure in a much different way than a system that’s covered by intermittent resources alone. We need to think about how we meet the needs of our electricity that allows us to deliver reliable electricity and this is where geothermal power is our bread and butter.”

“We intend to fully engage the California Energy Commission and the Governor’s office to ensure the policies and programs that allow us to tap the full potential of the state’s geothermal resource base to help meet the renewable goals set by the state are adopted,” Gawell said. “GEA’s last Industry Update identified more than 34 projects with over 1,400 MWs under development now in California, and this is only a fraction of the resource potential.”

Gawell also called on California to convene a Geothermal Task Force, similar to the one recently initiated in Hawaii, to re-assess the full resource potential of the state using today’s knowledge and technology. Hawaii’s Task Force has recently proposed that the state set a goal of being 100% geothermal powered.

“To support moving the geothermal agenda in California forward, we intend to build on the dialogue started at the Forum and convene a geothermal policy summit in Sacramento this summer,” Gawell announced. “The summit will focus on the critical issues the Forum identified and seek to find new approaches to expanding geothermal power production to help meet California’s energy needs,” he added.”

Source: GEA release via email

The judging was made in each of the technical sessions held at the GRC 2011 Annual Meeting in San Diego, the world’s largest geothermal event, last fall. The judging criteria included the quality of the visual aids as well as the ability to communicate the subject matter.

Over 230 presentations were made in 53 sessions covering 15 tracks. The GRC 2011 Annual Meeting attendees came from 32 different countries around the world highlighting the global interest in the geothermal industry.

The GRC has made almost all of the visual aids from over 230 technical presentations available on its Website at www.geothermal.org and is showcasing the 53 outstanding presentations at www.geothermal.org/powerpoint11_best.html.

The GRC has issued a call for papers to be presented at this year’s GRC 2012 Annual Meeting taking place September 30-October 3, in Reno, Nevada, USA, at the Peppermill Resort Spa Casino. The Draft Paper submission deadline is April 27, 2012.

• Instructions (pdf)
• Submission Form (pdf)

All presentations at the GRC 2012 Annual Meeting will be judged for the outstanding presentations from the global geothermal community for 2012.

Additional information about paper requirements and submission forms can be obtained by contacting the GRC at (530) 758-2360 or at geothermal.org.

Source: Release via PR.com

The company also announces that the “ongoing injection distribution at the company’s Blue Mountain geothermal power plant provides encouraging results”.

“A program to preserve generation capacity was initiated in 2011 and is nearing completion. The program objective is to shift injection away from the injection wells that return cooled geothermal fluid from the plant back to the production zone too quickly.

Three existing unused wells, 58A-15, 38-14, and 89-11, were selected to be placed into injection service following field tests and computer simulation modeling. In early November 2011, injection into well 58A-15 commenced at a rate of 600 gpm to a shallow permeable horizon that appears from tracer tests to be isolated from current production zones such that cooled fluid is not expected to return to production wells. Well 38-14, requiring new pipeline construction, was connected and injection at a rate of 150-200 gpm commenced Dec 28, 2011 on the southern margin of the producing field. Well 58A-15 and 38-11 injection has resulted in a lessening of temperature declines at the production wells.

Temperature declines at some wells (14-14, 26A-14) appear to have ceased. The third well 89-11 was cleaned out and a slotted liner was installed in November 2010; injection tests confirm that the well is a “better than expected” injector capable of taking approximately 2000 gpm. Pipeline construction to 89-11 was recently completed and injection commenced on January 12, 2012 starting at 500 gpm to be increased in stages. The further redistribution of injection into 89-11 is expected to further moderate observed temperature declines in production wells.

Reservoir simulation modeling by GeothermEx, Inc. has estimated that the re-distribution of injection into 58A-15, 38-14 and 89-11 will allow senior loan covenants to be met through the remaining 17-year life of the facility. The mezzanine debt service coverage ratios are in breach and the Company is working cooperatively with lenders and its advisor to restructure the loan.

A tax-assisted financing to monetize deductions is planned with Marathon Capital, LLC as agent, following the completion of the current injection program and confirmation of the reservoir response.

Blue Mountain Reservoir Development

As announced previously, NGP completed a comprehensive independent study by Engeocon LLC. of all resource and geotechnical information to better understand the geothermal fluid flow system, recommend strategies for arresting slow thermal declines, and recommend additional field development steps to increase production at the Faulkner 1 geothermal power plant. The study forms the basis for NGP’s current reservoir management strategy and identifies new injection targets on fault structures trending north and northeast from the existing wellfield. New deep production drilling targets are identified on known structures to the west.

The Company proposes a three-well development program comprised of two new northern injectors (55-10, 65-11) and one new production well (47-15) to achieve a targeted 53 MW gross plant output (42 MW net delivered to the grid). The two new injectors will be drilled in sections 10 and 11 to shift the injection from the current western injectors to the northern periphery of the field. A new production well would be sited in the hottest part of the known field west of the current four deep western injectors.

The $20 million drilling and development project has excellent financial returns because wells can be placed in service as they are completed and connected by pipeline to use the excess production capacity of the existing Faulkner 1 plant. Production increases may require the approvals from NVE, the senior debt holder and certain regulatory agencies. GeothermEx has been engaged to independently assess the proposed development project.”

Source: Company release via InvestorPoint

John has been known as an advocate on geothermal energy and is the Treasurer of the Canadian Geothermal Energy Association.

In the interview he provides his current investment thesis and provides a good overview on the relationship between conventional energy prices and renewable energy stocks.

“Optimally, it would be better for renewables if conventional energy prices were higher. However, the reality is that renewable prices do not fluctuate with conventional energy prices because renewable power generators operate on long-term contracts with fixed prices. In the power business it is natural gas, not oil that sets the marginal price of power in the developed world. Low gas prices actually reduce prices on new renewable power contracts, but they do not affect an existing contract.”, so John.

On the developing world he mentions that it is still dominated by oil and diesel generated power and that’s why it is interesting for developers. In this context he talks about the Caribbean and the Pacific Islands and even Hawaii.

Going into detail about some of his renewable stocks of interest, he mentions several geothermal companies. On Ram Power he sees a “good near-term potential”, despite a rating of “Speculative Buy”. He also sees the current rebound, while small, as a sign that things are looking better. Clearly this is due to Ram Power’s project in Nicaragua coming online. He talks about “show-me” stocks, clearly referencing the need for companies needing to prove they can bring plants online and this “on time, on budget and with cash flow”.

On Ormat Technologies he sees the fact that there haven´t been “significant dividends” as a reason for the company being punished on the stock market in 2011, but believes it will do better compared to its peers in 2012.

Alterra Power is another geothermal company he talks about. Here he sees the fact that the company turned “cash-flow-positive with the consolidation and acquisition of Plutonic Power Corp.” … even though this means a diversification from its pure geothermal business at Magma Energy pre-merger.

With the main decline of the stock, he sees that the geothermal stocks will move into a “buy” position.

The last company he mentions is U.S. Geothermal seeing it as a “good value, and unlike other geothermals, it has not yet bounced off its one-year low”.

An interesting read and good insights in this interview.

For the full interview see: InvestorIdeas.com

Geodynamics’ Managing Director Mr Geoff Ward has confirmed that personnel and equipment are now being mobilsed on site in readiness for drilling activity.
“Our drilling contractor Weatherford Drilling International has been notified to move drilling crews back to site and commence crew training. Material and other service contractors have also been engaged in preparation for a planned spudding before the end of February 2012.”

“We remain very focused on our drilling program. Habanero 4 represents the first major step in an appraisal program designed to demonstrate a commercial scale energy project at the Habanero site within the next two years.”

Habanero 4 will be drilled using Rig 100, with the program expected to take approximately four months. The Joint Venture plans to drill the Habanero 4 well to a target depth of approximately 4,170 metres to access the existing fracture zone. Following achievement of this objective, the well will be tested to secure data necessary to continue reservoir development studies and validate reservoir models.

On the basis of the well information obtained, the fracture zone may then be locally stimulated similar to that performed at Habanero 3 with the purpose of extending the fracture
network.

“Our return to operations at Habanero is a significant step towards the development of this valuable resource for Australia,” concluded Mr Ward.”

Source: Company announcement (pdf)

“Geothermal company Geodynamics plans to drill its Habanero-4 well in the first financial quarter, taking it toward producing power to Innamincka.

Susan Jeanes said “the Geodynamics project, that suffered a major setback with a well blowout at Habanero 3 well in 2009, would also work toward fracturing rocks to achieve circulation of super hot water for its 1MW plant.

SA geothermal company Petratherm has drilled a deep well at its Paralana project north of the Flinders Ranges and completed a successful fracture.

This year it could manage to drill the second well needed to produce energy, but the company lost one of its joint venture partners, TRUenergy, last year. Beach Energy remains a JV partner and operator of the project.

Ms Jeanes was upbeat about the industry saying if the drilling work was successful this year it could help lead the whole sector forward.

“We expect, that given (Geodynamics) successfully proved the concept with Habanero one and three that they will be successful with Habanero one and four because they are drilling into the same geological structure,” she said.

“That success at Innamincka will provide a huge boost of confidence in the sector, then the sector hopes that will be followed by a successful well at Paralana.”

Petratherm managing director Terry Kallis said plans to begin drilling on a second deep well in the Paralana project were still on track for later this year despite TRUenergy’s exit.

“We haven’t changed our plans. we’re still on track to look to drill later this year,” Mr Kallis said.

“There are a range of options that we will look for in terms of funding it (markets, government grants or joint venture partners),” he said.

Research institutions had also banded together nationally, including Adelaide University, to collaborate on research that could help geothermal companies de-risk exploration and project work.

“These institutions have the capabilities to support the development of geothermal projects, they have all banded together through a memorandum of understanding and are investigating options for significant funding support,” Ms Jeanes said.

“That can help take the risk out of identifying resources that can support commercially viable projects, if they can understand more about the resource, then that can help dramatically reduce exploration costs and also make sure areas aren’t drilled where it’s not a commercially viable resource.”

Source: Adelaide Now

“Interior Secretary Ken Salazar said his agency would continue a three-year-old collaboration with California to speed approval of renewable-energy projects and the transmission lines needed to connect them to the grid.

California utilities are required to use solar, wind or other renewable power for one-third of the electricity they sell by 2020, as part of the state’s 2006 plan to fight climate change.”

These are generally good news and might help some of the Californian projects to receive faster approval for development, an important element as permitting currently holds back development of geothermal projects in the U.S.

The geothermal projects on the priority list for the BLM 2012 are currently: Caso Diablo by developer Mammoth Pacific with a potential capacity of 33 MW and New York Canyon a 62 MW project by Terra-Gen. (see BLM)

Source: BLM Announcement, NASDAQ

The project is proposed to be located on the northwest slope of the Stillwater Mountain Range approximately 25 miles east-southeast of Lovelock, Nevada.  The project area would be within the boundaries of nine federal geothermal leases in Pershing County, Nevada.

The proposal includes the construction and operation of an up to 70-megawatt, geothermal power plant, a maximum of 45 geothermal production, injection, and/or observation wells, up to three water wells, access roads, geothermal steam/fluid pipelines, an airstrip and airplane hangar, up to two 230-kilovolt electrical line, an electrical substation, and support facilities.

A copy of the Operations Plan is available for review at the Winnemucca District Office at 5100 E. Winnemucca Blvd., during regular business hours – weekdays from 7:30 a.m. to 4:30 p.m.

The document may be reviewed online atwww.blm.gov/nv/st/en/fo/wfo/blm_information/nepa0.html.

Questions and written comments should be directed to: Philip Lorimer D’Amo, project manager, BLM Winnemucca District, 5100 E. Winnemucca Blvd., Winnemucca, NV 89445-2921.  Comments may also be submitted by e-mail to wfoweb@blm.gov.  E-mail messages should include “NYC Geothermal Project (D’Amo)” in the subject line.”

Source: KTVN

Kenya Electricity Generation denies claims that it faulted on procurement rules during the award of a Sh8 billion ($90 million) contract to the Chinese drilling company for drilling geothermal wells.

“In reference to information contained in a monthly magazine claiming that the board of directors and managing director Eddy Njoroge breached the rules to benefit from the deal, the company says none of the claims is true.

The article questioned the composition of the tender committee that awarded the extension of the Great Wall Drilling Company Contract, saying under the 2005 procurement rules, Mr Njoroge should not seat in the tender committee.

“The 54th KenGen Tender Committee meeting was legally constituted and acted in accordance with a transition provision of the Public Procurement and Disposal Act (2005) which came into force in 2006,” KenGen board chairman Titus Mbathi said.

The transition clause provided for continuity on all tendering processes that had started before the Act came into effect.

The Nairobi Law Monthly magazine has also accused KenGen of engaging in corruption in awarding a Sh8 billion tender for the commissioning of mobile wellheads to Norwegian company Green Energy Group.

Mr Mbathi said the contract extension of Great Wall Drilling Company, a Chinese firm, was within public procurement laws and did not amount to contract variation, as claimed by the magazine.

He said the tender was first floated in 2004 and only two firms applied, and were disqualified at the technical stage. The tender was re-advertised in 2006, after which over 240 firms, members of the International Association of Drilling Contractors (IADC), were invited to bid.

“Consequently, 12 companies bought the tender documents, but only three submitted bids. After thorough technical and financial appraisals, the Great Wall Drilling Company of China emerged as the most competitive,” Mr Mbathi said.

He further said that the initial tender was for six appraisal wells, but the tender and contract had an extension clause and this information was available to all tender applicants, “none of whom has to date complained of any malpractice throughout the execution of this tender”.

The following video was published by Kenyan TV station ntv with a press conference including the Chairman and CEO of KenGen:

Source: Sunday Nation

The buyer is an Icelandic investment fund called SF III. This closes a chapter of many years of the company having been held by financial institutions throughout the turbulent times of boom and bust of the Icelandic financial markets.

SF III slhf., an investment fund operated by Stefnir hf., has signed an agreement to acquire an 82% stake in Jarðboranir hf. (Iceland Drilling) from Miðengi ehf., a subsidiary of Íslandsbanki hf. The company was previously owned by Geysir Green Energy and in the process of the dissolving of the company, Íslandsbanki took over the ownership and started the sales process.

The owners of SF III are three pension funds, Festa, Gildi and LSR as well Samherji hf., and SÍA I, private equity fund operated by Stefnir hf. Miðengi ehf. will continue as a shareholder in the company and own an 18% stake. The share purchase agreement is subject to a number of conditions, including but not limited to the approval of the Icelandic Competition Authorities.

Miðengi ehf. commenced an open sales process of Icelandic Drilling in August 2011 with Íslandsbanki Corporate Finance as the advisor. The sales process was publically announced and a large number of offers were submitted from both domestic as well as international investors. The owner subsequently initiated discussions with the highest bidder which were successfully concluded with the sale to SF III. No price was mentioned in this context.

In a first statement by Bent Einarsson, CEO of Iceland Drilling, he said: “We are very pleased to welcome a new major shareholder to the company. Their mission and values are a perfect match with the company‘s current strategy and the headquarters will stay in Iceland. Active ownership is an important prerequisite for Iceland Drilling’s further success. In this perspective we continue to explore projects in foreign markets and the opportunities that arise with increased focus on sustainable energy sources globally”.

Given the company’s activities in mostly international markets, the company was an popular acquisition target for various Icelandic investment groups that are looking for opportunities despite the underlying foreign currency restrictions in Iceland.

It will be interesting how this will affect the company’s strategy going forward, but with its experience and pipeline of contracts, it should be well positioned and having finally a clear ownership position should also be helpful going forward.

Currently the company owns subsidiary Hekla Energy, a drilling firm in Germany and runs projects in New Zealand, Dominica and Iceland, with its eyes on various other markets going forward.

Source: Iceland Drilling

The Chief Minister Prem Kumar mentioned in this context the various hot springs in the state, with more than 150 thermal manifestations, which are a clear inidcationof geothermal resources in the state.

“Thermal sites in the Parbati and Kull Valley of the state are known for their high temperatures due to hot springs in the area, such sites are best suited for projects of this kind”, he said in a statement this week.

Utilizing the state’s geothermal energy potential, eventually every household in local areas would be in the position to receive adequate power.

“Even large cold storages could be run using geothermal energy. This would enable us to adopt clean development mechanisms and reduce dependency on coonventional power sources”, he added.

Praising the research on the state’s geothermal energy potential by Vijay Chauhan of the Indian Institute of Technology (IIT) Mandi, the chief minister said his research would revolutionise energy generation in Himachal Pradesh.

Chauhan has also received accolades from nuclear scientist and the country’s former president A.P.J. Abdul Kalam, who had praised him for doing research on using geothermal energy for apple refrigeration and the fruit processing industry.

His research says the hot springs in Manikaran in the Parbati Valley can run a cold storage of a capacity of 1,000 tonnes and generate 30KW of power. The power can alos b used to run a fruit processing plant with a capacity of 30 tonnes.

Source: NDTV

The contract for the 25 MW Los Humeros II Phase B plant, worth over EUR30 million ($38 million), follows the Los Humeros II Phase A power plant contract signed by Alstom in May 2009. When completed in May 2012, the Los Humeros II plants will produce more than 400 GWh of reliable, cost-effective and clean electricity, enough to power 100,000 homes in Mexico’s eastern Puebla state.

Guy Chardon, Senior Vice President Alstom Thermal Products, said: “This turnkey contract is a further endorsement of the attractiveness of Alstom’s geothermal offering. As a leading supplier of low-carbon power generation solutions, we are proud that CFE has again chosen Alstom’s geothermal technology to help Mexico add generation capacity while reducing CO2 emissions.”

Under the terms of the contract, Alstom will supply the complete engineering, procurement and construction (EPC) solution including the steam turbine, air cooled turbogenerator, turbine control and distributed control system (this project will use Alstom’s state-of the art ALSPA Series 6). The turbine will be produced at Alstom’s local manufacturing facility in the municipality of Morelia, Michoacan state.

Mexico is the fourth largest geothermal energy producer worldwide after the USA, the Philippines and Indonesia. This project is Alstom’s second since its recent return to the fast-growing geothermal market. In the past, CFE contracted Alstom for several geothermal contracts including the building of four 25 MW units at the Los Azufres geothermal power plant in Michoacan state in 2000, and the supply of two 5 MW units to the Las Tres Virgenes geothermal power plant in Baja California Sur in 1998.

Over the last 20 years, CFE has contracted Alstom to build, retrofit and service power generation plants and equipment spanning a wide variety of thermal and renewable energy sources including fossil-fired (fuel-oil, coal, gas), hydropower and geothermal capacity. Since 1988, Alstom has installed 10,000 MW in Mexico, providing 20% of CFE’s power generation capacity.”

Source: Alstom announcement via Euro-Energie

The development of these new geothermal areas are part of a long-term strategy to achieve as much as 40% of domestic power demand from geothermal sources by 2021. The exploration of new areas takes time, however, so even though these activities will start in 2012, it will take several years for the new wells to reach full scale power generation capability. LaGeo is the only company in the country’s mixed economy that has permission to export power generated from geothermal sources to the national power grid. LaGeo was created in 2001, as a public-private ownership venture for Investments Energy, a subsidiary of the Executive Hydroelectric Commission of Lempa River, and Enel Geothermal, subsidiary of Italian utility and developer Enel. The companies have been in a legal dispute, which has been resolved in mid-2011, with Enel remaining an investor in the Salvadoran geothermal market.”

Source: La Prensa Grafica (in Spanish) via Renewbl

The State Enterprises Ministry said that Pertamina’s units Pertamina Geothermal Energy and Pertamina Drilling Services Indonesia may carry out IPOs this year. But Pertamina, the state-owned oil and gas company, said that it was still weighing the feasibility.

“We’re still in the preparation stage,” Pertamina spokesman Mochamad Harun said on Wednesday. He did not confirm if the companies were ready for an IPO.

Pertamina controls 90 percent of PGE, which operates geothermal facilities. It also has a 99 percent stake in PDSI, which has 34 drilling rigs.

State Enterprises Minister Dahlan Iskan said on Tuesday that PGE and PDSI were among state companies that would conduct offerings this year. Other state companies that have been put on the list include Semen Baturaja, state pawnshop Pegadaian, and a unit of national flagship carrier, Garuda Maintenance Facility AeroAsia.

“In principle, if they are ready, then go ahead,” Dahlan said.

Dahlan said that proceeds from sales in IPOs and bonds could improve a company’s performance and good corporate governance. As a publicly traded company, an IPO would put the company’s performance under public scrutiny.

President Susilo Bambang Yudhoyono said during the first day of trading this year on the Indonesia Stock Exchange that he expected to see more state companies carrying out IPOs.

In February 2011, the state flag carrier Garuda Indonesia sold shares to the public. In 2010, the Indonesia Stock Exchange saw state construction company Pembangunan Perumahan and state steelmaker Krakatau Steel go public.

Last week, Dahlan said that about eight state companies would have IPOs this year. That would be 30 percent more than was originally sought.”

Source: The Jakarta Globe

It refers to the Geothermal Law of 2007, additional implementing regulations and the regulation No. 139 that guarantees financial obligations of PLN under their Power Purchase Agreements. It also speaks about the legal certainty needed to stimulate immediate investment into the sector with main challenges still existing.

The article gives a good overview on the key issues as they surround geothermal development in the country of Indonesia.

Article available at: SSEK

Assignment

The workshop will be attended by invited and interested investors, representatives of funding agencies, renowned geothermal exploration and development institutions, board of consultants and invited experts.

The workshop will review all available data to ascertain its quality and quantity, verify the interpreted models and suggest alternative interpretations, determine the viability of the geothermal resource, establish a preliminary conceptual model of the geothermal system, if a viable geothermal resource exists, locate exploration drilling sites, rank the geothermal sites, determine the most sustainable and cost effective development plan for the geothermal resources, determine alternative uses of geothermal energy

Location and Derivable Time-Frame

The assignment is expected to initially be undertaken in not more than 4 working days. The successful individual consultants will sign a contract for a period of 4 working days.

The Individual Consultants shall be based in Kigali for most of the duration of the assignment. The consultant shall report to the EWSA Energy Development Director or his designated representative.

Key Qualifications/ experience/ competencies/ knowledge

1. Shall have practical experience of not less than 5 years in geothermal development with specific experience in geothermal development including planning and drilling activities;
2. A professional degree in the subject of his expertise from a recognized University;
3. Fluent in both written and spoken English;
4. Have had professional experience in a broad variety of geographic settings and countries, including developing proven consulting in geothermal development in countries in high temperature geothermal fields;
5. Be recognized as an expert in his field through such things as publications, memberships in appropriate professional societies, or honors and awards received for works;
6. Having participated in previously organized workshop in February 2010, the will be an added advantage.

Expressions of interest must be delivered to the address below at or before 10 :00 hours local time and on 18/01/2012 Electronic bidding will not be permitted. EOI will be opened at the address below at 10: 10 hours local time on same date.

Application procedures:

Qualified individual consultants should submit a Curriculum Vitae and supporting certificates and documents, two references with addresses and phone numbers, as well as a letter of motivation to the address:

Interested individual consultants may obtain further information at the address below during office hours from 08:00 to 17:00 hours:

ENERGY WATER AND SANITATION AUTHORITY
Rue du Lac Ihema
P.O.B 537 Kigali, Rwanda
Tel.: (250) 573666
Fax. (250) 573802
E-mail: ewsa@rwanda1.com
Website: http://www.ewsa.rw

Source: DG Market with tender details (Attention it is now the correct link now)

CanGEA will hold a Technology Information Session on February 7, 2012 in Calgary/ Alberta in collaboration with the Petroleum Technology Alliance Canada as a partner.

Link: Invitation and Registration

CanGEA is now inviting Steering Committee members (co-funders) and Technology Content Contributors to the Roadmap.

The work on this roadmap is to help support the growth of Canada’s geothermal energy industry through strategies agreed by stakeholders from government, industry and the research community. It will help bring together all stakeholders to evaluate and develop the right steps in helping Canada become a competitive player in the globally growing geothermal energy market. At the same time it will help foster development of geothermal energy projects in Canada that could help in applying technologies and know-how of the Canadian natural resources industries, including companies from the oil and gas sector, geothermal energy companies and the larger research community.

Spaces for the information session are limited, so CanGEA advises to register early to secure access to this important event for the Canadian geothermal energy industry.

Why is Foro Energy interesting in the geothermal energy context? Well it was a bit of a surprise if the company received some ARPA-E funding in 2009 for its technology development work on drilling. … and this is all people knew about the company at the time. Now we know that the company is developing a laser-based technology that is to help make drilling more efficient and cheaper.

For the future of the geothermal energy industry, people agree that EGS will play an important role and this means that we need to drill deeper wells that are more expensive to drill. So a drive into developing technology that helps overcome technical hurdles and makes drilling to these depths cheaper is important and very interesting to the geothermal sector, and naturally also for the oil & gas sector.

Joel Moxley, 31 years of age, is the founder and CEO of Foro Energy with a background and Ph.D. in Chemical Engineering and North Bridge Venture Partners, also one of the investors in Foro Energy.

The company is developing laser technology that can be utilized despite long power laser transmission, here in our context at great depths. It will be interesting to see when the technology will be applied for EGS projects and see it in action.

So there is ongoing technology development in drilling, one of the crucial elements of geothermal project development. To see some competition between companies in this field, Potter Drilling and Foro Energy is great. Any help to decrease drilling cost is welcome.

Source: GigaOm, Foro Energy

Currently, Mexico ranks number three in installed geothermal power generation capacity after the United States and the Philippines. The country has several geothermal power plants in Baja California, Coahuila, Puebla, Michoacan and Jalisco.

The new plant Los Sumeros in the state of Puebla is expected to start operating in May 2012 and is a join project by Mexican federation and the state of Puebla. Following “the expected completion of the Los Humeros II Phase B plant, the Phase A and Phase B plants will cost-effectively produce more than 400 GWh of electricity, enough to provide clean, renewable baseload electrical power to some 100,000 local homes and businesses.”

Source: EV Wind, Clean Technica