GEOTHERMAL
Renewable resource
Content
1. Geothermal Energy
2. Geothermal Energy utilization
3. Open projects
4. Work flow
5. Cooperation proposal
Geothermal energy is heat energy from core of the Earth
Earth core estimated temperature is 5000 to 7000°C in the middle
1. Geothermal Energy
1. Geothermal Energy
Geothermal energy heats meteoric water which is stored in undergroundreservoirs or comes out on the surface in form of heat water wells orgeysirs
Average geothermal gradient is 25°C per km. In some areas thegeothermal gradient has higher values ranging 50-60°C per km or more
At this places the Earth crust is thinner and heat rises to larger extent
Earth crust has 20-65km in depth (0.3-1 % of Earth radius) incontinental areas
Those places are suitable for building geothermal power plants whichutilizes heat and changes it to electricity
First geothermal power plant was built in 1904 in Lardello, ItalyUSA, Philippines, Mexico and Indonesia are main geothermal electricalpower producers
1. Geothermal Energy
The electrical power produced by geothermal power plants in EuropeanUnion is considered as renewable source of energy and electricaldistribution companies are obliged to connect power plant to theelectrical distribution network
Geothermal power production is subsidized by European Union in formof favorable purchase price compared to non renewable electricitysources
Purchase price varies country-by-country and it is on the level of 150-191 Euro per 1 MWh
Geothermal energy in reasonable quantities for Electricity production isavailable only in some of the areas in European Union
1. Geothermal Energy
To utilize geothermal energy a medium is necessary. The major splitbetween geothermal systems is whether this medium is excavated fromEarth in form of hot water/steam or injected from above the ground
Traditional systems uses underground water/steam
Historically, first usage of geothermal energy for Electrical energyproduction was in places where hot steam was available intemperatures ranging about 200°C and more
Latter, systems with lower temperatures are used with temperaturesabout 120°C
Today’s systems can work with temperatures ranging down to 95°C
2. Geothermal Energy utilization
Newest systems use Hot dry rock where a working fluid is injected intoman made underground hole where hot are provides heat
Working fluid is then used directly or indirectly to run the turbines andproduce electricity
After using heat from working fluid the working fluid is re-injected backto same place and heated again
Theoretically, this form of Geothermal energy utilization can be usednearly anywhere at the World with wells deep enough to providesubstantial heat
Limiting factor with Hot dry rock is price of wells and geologicalunderground formations
2. Geothermal Energy utilization
2. Geothermal Energy utilization
The geothermal power plant uses production well(s) to excavate steamand injection well(s) to return used water back to the ground
2. Geothermal Energy utilization
In most cases straight use of underground steam is not feasible
Usually, steam heats working fluid which has lower boiling point thanwater-organic fluid
Working fluid circuits in closed circle through turbine which rotated thegenerator and produces electricity
Economically reasonable geothermal power plants starts with outputpower of cca. 4MW and higher
ORC – Organic Ranking Cycle technology that uses working fluid canwork from 95°C but reasonable temperatures starts at 120°C
The output water has temperature of cca. 65°C and requires additionalcooling before re-injection back to the ground
For additional cooling the glass houses heating, spa’s orresidential/industrial heating is used
Geothermal power plant is stable resource of energy without variations inoutput power
It can run remote without personnel on the site
2. Geothermal Energy utilization
2. Geothermal Energy utilization
Geothermal power plant runs at least 8000 hours per annum
Maintenance interval estimation is 30 days per annum
Geothermal power plant estimated lifetime is determined by size ofunderground reservoir and speed at which re-injected water influencesit
Lifetime of heat exchanger is determined by quality of excavatedwater/steam
Geothermal power plant The Geysers worked with original turbine from1960 until 1990. The power plant is still in operation.
Estimated industry lifetime of geothermal power plant is 30 years
2. Geothermal Energy utilization
Geothermal power plant operational costs includes cost for cooling,electricity costs for running technology on the site, costs for changingwater quality, legal fees to the government etc.
This costs are minimal compared to the revenue and usually they relatebetween 5-15% depending on technical factors like quality of the water
High gross margin provides fast return of the investment and viablesolutions for financing via externals sources – banks
3. Open projects
Location 1
Located in central Slovakia, 166km from Bratislava
Favorable geological conditions proved by extensive geologicalresearch including drilling
Expected water temperature min. 120°C at 2500 meters
Maximum output power considered at location 20MW
Organic Rankin Cycle proposed
Option to heat whole valley (cca 30000 inhabitants) with waste heatafter electricity production
Option to heat industrial zone nearby
Highway to Bratislava
3. Open projects
Location 2
Located in central Slovakia, 183km from Bratislava
Favorable geological conditions proved by extensive geologicalresearch
Expected water temperature min. 120°C at 2200 meters
Maximum output power considered at location 7MW
Organic Rankin Cycle proposed
Option to heat city after electricity production
3. Open projects
Location 3
Located in central Slovakia, 191km from Bratislava
Favorable geological conditions proved by extensive geologicalresearch
Expected water temperature min. 120°C at 2000 meters
Maximum output power considered at location 7MW
Organic Rankin Cycle proposed
Option to heat city after electricity production
3. Open projects
Croatia
Located in central Croatia, 45km from Zagreb
Favorable geological conditions proved by extensive geologicalresearch and 2 wells – one 4.3km and second 3.5km that can beused for re-injection
Proven water temperature min. 120°C at 1800 meters, maximum 137at 2200 meters
Maximum output power considered at location 21MW
Organic Rankin Cycle proposed
Option to heat city with electricity 65000 inhabitans
Option for agricultural production
Option to heat ponds
3. Financial facts
Location 1
Minimum plant output power planned 4MW
Investment size 26MEuro for 4MW
Average annual revenue for 4MW is 4MW x 8000h/annum x155Euro/MW = 4 960 000Euro
Maximum plant output size 20MW
Maximum investment size 115MEuro
Average annual revenue for 20MW is 20MW x 8000h/annum x155Euro/MW = 24 800 000Euro
The Contract with mentioned favorable prices for 15 years ofoperation is signed with distribution company and it is distributioncompany obligation to purchase at this price
3. Financial facts
Location 2
Minimum plant output power planned 4MW
Investment size 25MEuro for 4MW
Average annual revenue for 4MW is 4MW x 8000h/annum x155Euro/MW = 4 960 000Euro
Maximum plant output size 10MW
Maximum investment size 52MEuro
Average annual revenue for 10MW is 10MW x 8000h/annum x155Euro/MW = 12 400 000Euro
The Contract with mentioned favorable prices for 15 years ofoperation is signed with distribution company and it is distributioncompany obligation to purchase at this price
3. Financial facts
Location 3
Minimum plant output power planned 4MW
Investment size 28MEuro for 4MW
Average annual revenue for 4MW is 4MW x 8000h/annum x155Euro/MW = 4 960 000Euro
Maximum plant output size 10MW
Maximum investment size 52MEuro
Average annual revenue for 10MW is 10MW x 8000h/annum x155Euro/MW = 12 400 000Euro
The Contract with mentioned favorable prices for 15 years ofoperation is signed with distribution company and it is distributioncompany obligation to purchase at this price
3. Financial facts
Croatia
Minimum plant output power planned 4MW
Investment size 22MEuro for 4MW
Average annual revenue for 4MW is 4MW x 8000h/annum x170Euro/MW = 5 440 000Euro
Maximum plant output size 10MW
Maximum investment size 55MEuro
Average annual revenue for 10MW is 10MW x 8000h/annum x170Euro/MW = 13 600 000Euro
The Contract with mentioned favorable prices for 12 years ofoperation is signed with distribution company and it is distributioncompany obligation to purchase at this price
3. Financial facts
Croatia
Croatian investment law strongly supports foreign investments
Investments between 1 – 3 Million Euro company pay only 25% ofincome taxes within next 10 years with condition it employs minimum10 persons
Investment above 3 Million Euro company pays no income taxeswithin next 10 years with condition it employs minimum 15 persons
In mentioned area one time state subsidy per each employee is 6000Euro
4. Work flow
Preparation of drilling
Drilling
Technology installation
Grid&Connection
Geothermal power plant installation consists of following steps:
4. Work flow
Legal work - permits, licences
Reservation of capacity in Electrical network
Ground plot purchase
Preparation of drilling - 6 months
4. Work flow
Preparing of ground plot for drilling, foundation
Drilling
Internal and external supervision of drilling
Measurements during drilling
Measurements and quantification of drill
Legal framework and approval for excavation (usage) of water
Drilling&testing - 7 month depending on weather
4. Work flow
Basement preparation
Technology installation
Testing of production
Connection to grid
Stability testing
Technology installation - 12 months
4. Work flow
Legal preparation
Connection of transformers and other technology
Network Monitoring connection and set-up
Grid&Connection - 6 months
5. Cooperation proposal
We offer comprehensive roll-out of renewable source of Energy with possibilityto create turn-key project.
We cover following activities:
Legal work
Geological research and geological due diligence
Purchase of the ground
Vendor evaluation and negotiation
Substantial network of contacts within countries
Assistance with governmental negotiations
Total Project management
Etc.