GEORG Geothermal Workshop 2016 SESSION B2, Midstream tITLE: Operational benefits from industrial clusters for the geothermal sector

1. OPERATIONAL BENEFITS FROM INDUSTRIAL
CLUSTERS FOR THE GEOTHERMAL SECTOR
Reynir Smári Atlason Rúnar Unnþórsson Guðmundur V. Oddsson
University of Southern
Denmark
University of Iceland University of Iceland

2. Our studies
A 3 year project funded by GEORG:
Efficient maintenance of geothermal power plants
Focus was on studying currently used maintenance
methods and to investigate approaches for more
efficient maintenance management.

3. Our studies
Our studies were based on real performance data,
interviews with power plant engineers and members
of the Icelandic geothermal cluster.
Project’s partners:

4. Our studies
Throughout several case studies we unfolded
some of the most evident benefits of a geothermal
industrial cluster for maintenance.
The results were published
• in Journals such as Geothermics and Energies,
• at ASME conferences (Power and IMECE),
• in two M.Sc. thesis and
• in one Ph.D. thesis

5. Our studies
In this presentation I will highlight the following three
topics from our studies:
• Maintenance improvements due to experience
• Maintenance improvements due to innovation
• Model of maintenance operations and development

6. Maintenance
– improvements due to experience –
We found that
• Marine engineers who have served as chief
engineers on fishing vessels are preferred by the
power plants.
• As operational experience kicks in, it seems that
maintenance recommendations from producers
are over-ridden and experience leads the way.

7. 2010(Q1) 2010(Q3) 2011(Q1) 2011(Q3) 2012(Q1) 2012(Q3)
0
5
10
15
20
25
Year of operation
Amountofmaintenanceworkdone
Experience overrides
recommendations
Here we have frequency
of wellhead maintenance
at Hellisheidi

8. Maintenance
– improvements due to innovation –
We found that the “willingness to try” is a mixture of
several functions such as:
– a need for a solution,
– operational experience,
– staff confidence,
– individual drive and
– corporate tolerance towards potential failure.

9. Maintenance
– improvements due to innovation –
Elli valve

10. Maintenance
– improvements due to innovation –
Furthermore, disruptive events can cause a high
“willingness to try”; such as,
– a sudden change in oil prices.
– a sudden change in the currency exchange rate.
If the domestic knowledge and skills are sufficient
then the industry can react within short time,
– evidenced when OPEC raised oil prices rapidly in 1973.
– evidenced after the economic collapse in 2008.

11. A disruptive event sparks
geothermal innovation
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% change in oil price
Krafla power plant construction begins
Hitaveita Suðurnesja is established (HS Orka/Veitur)
Svartsengi plant construction begins

12. Svartsengi power plant
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USD and EUR against ISK
USD EUR
Hellisheiði power plant &
Reykjanes power plant
Nesjavellir power plant
EUR/ISK
USD/ISK
Maintenance
– improvements due to innovation –
Svartsengi power plant

13. Conditions in 2008 for the Power plants
– A geothermal industrial cluster was already present
– Maintenance knowledge and skills were available in
Iceland
– maintenance and specialized tasks where mainly
outsourced; e.g. rotor maintenance
– Exchange rate of the USD and EUR to ISK
increased significantly
– Outsourcing maintenance became very expensive
Maintenance
– improvements due to innovation –

14. Reactions
– Focus shifted towards formalizing the
geothermal cluster and building up
infrastructure, knowledge and skills.
Maintenance
– improvements due to innovation –

15. • Through close collaboration with
machining shops major maintenance
was carried out in short time
• No operational problems occurred
during following years
Maintenance
– improvements due to innovation –

16. Model of maintenance operations
and development

19. Thank you