acc <ul><li>GEOTHERMAL ENERGY DIVISION </li></ul>
Geothermal Energy Related Risk: Water Volumetric EXECUTIVE SUMMARY The growing Geothermal technology for producing alternative energy requires an answer from the insurance sector. The costs of drillings are currently a significant part of the investments for such an important goal. For that reason and due to the fact the science provides the necessary prevention technology to secure profitable operations, is that ACC Group Geothermal Energy division has developed a policy to fulfill the need of insuring the risk of not finding the right temperatures and the necessary flow of qualities waters to produce energy. Our “Water Volumetric” policy is the result of our research in this field. Hoping this is a contribution for Geothermal Energy development.
Geothermal Energy Related Risk: Water Volumetric <ul><li>Geothermal Energy Science </li></ul><ul><li>Science provides the necessary studies to determine the geographical areas where a Geothermal plant should be located. Before drilling seismic data and data from old drillings will be analyzed to define the drilling target. The following studies are made prior to selecting a drilling area: Petrophysical analysis, Seismic interpretation and analysis, Data login interpretation of old wells, and drilling dynamics analysis of old wells, possible geomechanical interpretation, possible geostatistical analysis and possible formation characterization, possible static geological modeling and possible dynamics simulations, old wells flow analysis. </li></ul>
<ul><li>Geothermal Energy Science </li></ul>Natural steam/water from the production wells power the turbine generator. The steam/water is condensed by evaporation in the cooling tower and pumped down an injection well to sustain production.
<ul><li>Water Volumetric is intended to cover such risk conditioned to a “Third Party Reserve Report” and covers: </li></ul>THE POLICY Geothermal Energy Related Risk: Water Volumetric
<ul><li>The contingency “Water Volumetric” policy will cover the drilling activities of </li></ul><ul><li>geothermal projects to generate electricity for the “risk” of not finding the </li></ul><ul><li>volume of water and the expected temperature in the aquifers object of a </li></ul><ul><li>drilling process for the operation. Policy will cover the contingency of not finding water after the drilling process completed and redirection of the drills taken to obtain success in the operation. </li></ul>Geothermal Energy Related Risk: Water Volumetric Policy covers causes of nature and/or errors and omissions of the technology or technical staff in the selection of the drilling geographical areas or any other contingencies that might cause economic losses to the individuals or companies with assured interest in the success in the drilling operation. Cover will be limited by sum insured andwill reimburse costs of drilling adjusted when conditions described in the “claims clause” occur.
<ul><li>Claims will be submitted when the temperature of the hot water in the target aquifer and the hot water flow capacity of the aquifer do not perform as per expectation of a “successful operation”. </li></ul><ul><li>A claimed will be reimbursed only if, An estimation of how much power can be produced before drilling and all technical aspect related to the selected drilling place were submitted and approved by the insurance company by a “Third Party Reserve Report “ Drilling process completed a length of drilling of a minimum of 3000 mts. </li></ul>Geothermal Energy Related Risk: Water Volumetric CLAIMS CLAUSE
Geothermal Energy Related Risk: Water Volumetric <ul><li>When aquifers temperatures 120C and higher will be the targeted temperature and obtained power in the estimate and higher. </li></ul><ul><li>Note: In the Neuried project the estimations are: 120C temperature and 2.3 MW power. </li></ul>DESCRIPTION OF A “SUCCESSFUL OPERATION”
Geothermal Energy Related Risk: Water Volumetric <ul><li>Drilling processes and geographical location will required a certificate signed by an independent engineering company in order that any certificate of insurance be valid. Client will submit to the Insurance Company resume of such specialist company or individuals for approval. </li></ul>THIRD PARTY RESERVE REPORT
Geothermal Energy Related Risk: Water Volumetric <ul><li>Market </li></ul><ul><ul><ul><ul><ul><li>Worldwide Water Volumetric Program could be established to cover the geographical areas that in the world are considered the more important targets for drilling and generating electricity: In the U.S. : Nevada and California, in Indonesia; In Europe: Germany, Italy, Iceland and Turkey; Africa, Central America and some islands in the Caribbean such as Guadalupe are targeted regions for geothermal operations. In Germany, region of Neuried one project will start soon managed by the prestigious international company Exorka, with the support of the municipality of Neuried. </li></ul></ul></ul></ul></ul>
THE HOTTEST KNOWN GEOTHERMAL REGIONS IN THE WORLD
GEOTHERMAL POWER PLANTS People who live in these areas are receiving electricity from geothermal power plants.
PLATE BOUNDARIES Earth's crust is broken into huge plates that move apart or push together at about the rate our fingernails grow. Convection of semi-molten rock in the upper mantle helps drive plate tectonics.
CO 2 Emissions Comparison (lbs/MW-hr) Source EIA 1999; Bloomfield and Moore
GEOTHERMAL PLANTS RISK MITIGATION Science provides the necessary studies to determine the geographical areas where a geothermal plant should be located. Before drilling geological, geochemical and geophysical data analyzed to define the drilling target. Geothermal Energy Sciences used prior to any exploration drilling:
- On site reconnaissance - Geological survey and mapping - When possible geochemical sampling and analysis (or review of existing data from nearby drilled wells) - Geophysics including either acoustic or magnetic methods The first scientific investigation steps are: GEOTHERMAL PLANTS RISK MITIGATION
EXPLORATION DRILLING WELL TESTING AND LOGGING RESOURCE ASSESSMENT FEASIBILITY STUDIES STEAM FIELD ENGINEERING PLANT DESIGN AND CONSTRUCTION SPECIALIZED SOFTWARE PRIOR DRILLING STUDIES GEOTHERMAL PLANTS RISK MITIGATION
GEOTHERMAL PLANTS DRILLING STATISTICS SUCCESS RATE OF GEOTHERMAL DRILLINGS The success rate of a geothermal drilling in areas with existing drilling data can reach up to 90%. With recent developments in the geology, hydrogeology, petrology and mapping success rates have reached 90% in particular in Iceland and New Zealand. The New Zealand based geothermal consulting company SKN stated in 2006, that in fields with extensive existing data and feedback from existing drillings the average hit rate during development has reached these 90%. The success ratio in Iceland has currently reached 85 to 90% thanks to companies like Enex, specialized on creating computerized geographical maps of the area to sit the drillings very accurate. Enex also developed the Neuried project.
GEOTHERMAL PLANTS DRILLING STATISTICS SUCCESS RATE OF GEOTHERMAL DRILLINGS In Germany the existing geological and geophysical data data are of very good quality and have been monitored for a long time by the regional and national geological and hydrological institutes. In the Rhine region, where Neuried is situated the drilling is done in a fractured zone, which can explain why acidification may be required to obtain the requested flow of 75 liters per second from the production well. This was stated by Prof. Dr STOBER, head of the Geological Department of Land Baden-Wurttemberg in a last assessment. For the project Neuried, we give here under a review of the drillings performed in Germany in the past years.
Geothermal Energy Related Risk: Water Volumetric <ul><li>In Conclusion </li></ul><ul><li>A Water Volumetric policy is feasible. ACC will work with the underwriters for this program that will be available for the Geothermal Industry. </li></ul>
acc <ul><li>GEOTHERMAL ENERGY DIVISION </li></ul>PART OF ACC GROUP
In business since 1974. Operations in USA, Venezuela and Europe. ACC GROUP
ACC GROUP PEOPLE Ali Cordero Casal, Chairman GEOTHERMAL ENERGY DIVISION Claude Bannwarth, Geothermal engineer specialist Florian Pittroff, Representative in Germany
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