Fin inding a model for success wit ith lo low temperature - - PowerPoint PPT Presentation

Fin inding a model for success wit ith lo low temperature geothermal

26/10/2016

Da David id Sim Simon

• ns – Geolo

Geology Man Manager

1

Les Lessons fr from

• m Denm

enmark

Summary

• Denmark - Summary of activity
• Future vision for Geothermal in Copenhagen
• Cost and risk mitigation
• Technology

26/10/2016 2

What is is happening in in Denmark today?

• 3 wor
• rking facil

acilities – Thi histed (19 (1984 84) 7M 7MWheat Gas assu sum Form

• rmation 43

43°C @ 12 1250 50m – Am Amager (20 (2003 03) ) 14 14MWheat Bunter Form

• rmation 74

74°C @ 26 2600 00m – Søn Sønderborg (20 (2012 12) 12 12MWheat Gas assu sum Form

• rmation 48

48°C @ 12 1200 00m

• Es

Essential to

• succ

uccess of

• f lo

low temperature geo eothermal is is hea heating ne network

• Wid

ide spe spead ne network (63 (63% connectivity) mos

• stly in

in urb urban ar areas s

• EU

EUDP DP fun funding to:

• :

– Cost st and nd scop

• pe

e drilling ng a cha halk stor

• rag

age e we well – Ne New w Ge Geot

• ther

hermal al we well

• To make geothermal part of Denmark’s energy future a much bigger vision

is is ne needed.

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Forw rward Pla lan

26/10/2016 4

• 8 new geothermal plants in the city
• Each plant will output 10-15 MW of heat and

will consist of a vertical pilot well, 2 directional injector wells and 2 directional producers

• All wells target the Gassum Formation

sandstones

Stills are taken from a video clip created using Geologiq ™

Is Is this is ju justif ifie ied?

ASSET ET VALUE

• Asset value. Total heat in place in Denmark recently estimated at 73 Billion Gj. This is 1.76 Billion BOE (*1)

DE DEMAND

• Aim is to deliver 30% Geothermal heat to the network. Over 30 years that equates to £12 billion in revenue(*2)

Des Despite thi his, s, in investment rem emains s sh shy as as de decisi sions s ar are base based on

• n expensi

sive pr prototype pr projects. s. Methods s for

• r reducing cos
• sts

s and and miti itigating ris isks s is is a a less lesson tha hat can an be be dr drawn fr from the oil

• il ind

industry.

*1 Frederikshavn, Halder, Gassum & Bunter Formations. Recovery factor is 0.33. 5 GJ per m2 assumption. New 3D heat model still under construction. Recovery is only 2% of total energy in place. 30 year model. *2 Number equates to a total of capacity 1,091 MW run year round. Operated for 30 years with 2015 average heat price (355 DK or £42/MWh). Exchange rates from 19/10/16

HOW TO REDUCE COSTS AND RISKS – LESSONS FROM THE OIL SECTOR

In the early days, the oil industry drilled expensive prototype wells with no knowledge sharing.

15.0 20.0 25.0 30.0 35.0 40.0 5 10 15 20 Days Well Number Good Average Poor

Brett and Millheim (1986) savings were up to 34% from first well costs. Today in US Drill cost savings are up to 52% (US Energy Information Administration 2016)

• By upscaling geothermal operations and applying a ‘whole cycle’ manufacturing approach to project planning and

execution, well costs reductions of up to 52% are achieved

• Optimised data acquisition to allow reservoir engineering to derisk the reservoir model

To harness these efficiencies, heating companies need a geothermal operating company, a professional partner with a vested interest delivering necessary savings to a project.

26/10/2016

1900 1986 TODAY

Network Temperature

• Heating network temperature has a significant impact on the economics of geothermal
• Danish network is generally run at or close to 80/55 (due to requirements of older housing stock)
• Geothermal heat production from Gassum typically +/- 70°C so heat pumps necessary in plant so increasing costs
• A new build system today supplying buildings of modern construction could use a ‘low temperature’ network
• This would make the economics of geothermal, and other renewable technologies very competitive.

Biomass plant (woodchip) Copenhagen

Tonder Geothermal al test ce centre Par artnerships s inc include:

• HUISMAN for
• r rig

ig technologies s (urb (urban dr drilling), com

• mposi

site cas asin ing and and lin liner, cas asing whi hile dr drilling.

• FORCE for
• r corrosi

sion man anagement

• Germ

erman oil

• il tools

s for

• r wel

ell he head system. Mak ake it it sim simpler, , lig lighter and and ch cheaper. . (C (Currently com

• mbines

s wel ellhead, , cas asing han hanger and and xm xmas as tree)

• GEOOP for
• r reverse ci

circulating g ce cement to pr protect aq aquifers. s.

• Dan

Danfoss for

• r modular con
• ntainer uni

units. s.

Geo eothermal l Tech echnology Ce Centre

26/10/2016 9

Summary

Extremely valuable low temperature geothermal assets in Denmark Upscaled and industrialized geothermal operations will provide:

• Suitably large heat outputs for the demand that exists in Denmark today
• Drilling cost reductions of up to 52%.
• Mitigation of uncertainty in the drilling process
• Mitigation of uncertainty in establishing connectivity between wells
• Better informed investment decisions - an end to expensive prototype projects and an understanding of the real

cost of geothermal heat

David Simons GEOOP Geology Manager Mob: +44 (0)7966 960594 david.simons@live.co.uk Bentzonsvej 6-8, Parterre, 2000 Frederiksberg, Denmark