With a new combination of existing technologies, we believe it is possible to create a renewable energy source –ultra deep EGS (Enhanced Geothermal Systems)– which is cheaper than coal. The principle is simple: a higher temperature results in a better electricity conversion efficiency. So there is a double effect: a better conversion efficiency and the amount of available energy is higher. This double effect is stronger than the related cost of ultra deep drilling. Simple calculations demonstrate that ‘deeper is cheaper’.

1. Ultra deep geothermal power
Renewable energy cheaper than coal
10 January 2010
Mark Gankema
version 11 - summary

2. Contents
• Summary
• Advantages
• The main principle
• The ‘deeper is cheaper’ calculations
• How cheap is coal?
• Proposed configuration
• Current status
• Other information
• Contact details
10 Feb 2010 Geothermal power – cheaper than coal – version 11 summary 2
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3. With existing technologies a renewable energy source cheaper
than coal can be created
Summary
With a new combination of existing technologies, it is possible to create a renewable energy source –ultra deep
geothermal power– which is cheaper than coal. The concept has been verified by industry experts.
The principle is simple. There is a double effect at higher temperature ranges: (1) a much better electricity
conversion efficiency and (2) the amount of available energy is higher. This double effect is stronger than the
related cost of ultra deep drilling. Simple calculations demonstrate that ‘deeper is cheaper’.
To be cheaper than coal the investment per electrical MW needs to be less than 3,0 million euro. For attractive
North-West European locations the investment per MW is expected to be 2,6 million euro.
Of course deep drilling is not that simple. Major issues have been researched and analyzed. Satisfactory
solutions have been found and validated by industry experts.
A group of partner organisations –Grontmij, IF Technology, Well Engineering Partner and Bright Capital
Partners– are building a consortium and making preparations to execute the project. Project management has
over 10 years of experience in amongst others energy and engineering industry.
10 Feb 2010 Geothermal power – cheaper than coal – version 11 summary 3
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4. ADVANTAGES
Geothermal power has major advantages
Advantage of geothermal power compared to wind and solar energy
1. Financially very attractive - potentially cheaper than coal
2. Indepent from wind and light conditions, power supply can be matched with
demand
3. No need for storage facilities. In a sustainable economy based on wind and
solar storage facilities will be necessary, these investments can be avoided
4. Supply can be close to the market, decentral generation is possible, no
major transport infrastructure needed
5. No landscape pollution (apart from drilling rig during construction)
6. Little footprint, approx. 1 ha
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5. THE MAIN PRINCIPLE
The temperature range determines significantly conversion
efficiency and thus electricity output
Electricity conversion plant efficiency
'heat-to-power'
Super critical
30-35%
Single/double flash
20-25%
Binary
10-15%
Most geothermal plants operate
in this temperature range
100 200 300 400 500
Temperature (ºC)
10 Feb 2010 Geothermal power – cheaper than coal – version 11 summary 5
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6. THE MAIN PRINCIPLE
Due to conversion efficiency a double effect applies to electrical
output power
Thermal and electrical power
400 ºC – 147 MW thermal
200 ºC – 63 MW thermal
4x more
9 MWe electrical power 36 MW electric
‘a bigger cake and a larger piece of the cake’
Based on 1 production well with a flow rate of 100 l/s
10 Feb 2010 Geothermal power – cheaper than coal – version 11 summary 6
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7. DEEPER IS CHEAPER
MW capacity depends not only on temperature, also productivity
index (PI) and reservoir size do matter
Net capacity - Self flowing well
Reservoir size
= 5,0 km3
40
30
Net capacity (MW)
PI=0,5
20 Capacity limit to avoid
reservoir exhaustion Reservoir size
PI=1 = 2,5 km3
10
PI=2
0
150 200 250 300 350 400
Temperature (ºC)
10 Feb 2010 Geothermal power – cheaper than coal – version 11 summary 7
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8. DEEPER IS CHEAPER
We used the most conservative estimate, a Well Engineers’ rule of
thumb of 3000 euro/meter
Drilling costs for geothermal wells
40
Rule of thumb
30
Costs (mln. $)
20
WellCost Lite model *
10
0
2.000 3.000 4.000 5.000 6.000 7.000 8.000 9.000 10.000
Depth (mete rs)
* Source: ‘A comparison of geothermal with oil and gas well drilling costs’ by Chad Augustine, Jefferson W. Tester and Brian Anderson.
2006, Massachusetts Institute of Technology (MIT)
10 Feb 2010 Geothermal power – cheaper than coal – version 11 summary 8
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9. DEEPER IS CHEAPER
Investment per MW decreases with drilling depth
Temperature
Investment per MW - EGS Self flowing 35ºC/km gradient = 35ºC/km
10
PI=0,5
8
PI=1
(million euro/MW)
6
Cheaper than coal
PI=2 benchmark
4
2,5 km3
2 5,0 km3
Limit due to
reservoir size
0
Depth (meters): 7.000 8.000 9.000 10.000
Temperature: 255ºC 290ºC 325ºC 360ºC
Total capacity: 17-41 MW* 35-53 MW* 63-69 MW* 89 MW*
* Based on 4 injection + 5 production wells per power plant and reservoir size of 2,5 km3
10 Feb 2010 Geothermal power – cheaper than coal – version 11 summary 9
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10. DEEPER IS CHEAPER
For a temperature gradient of 40ºC/km, investments may be as low
as 2,1 million euro per MW
Temperature
Investment per MW - EGS Self flowing 40ºC/km gradient = 40ºC/km
10
8
PI=0,5
(million euro/MW)
6
Limit due to
reservoir size Cheaper than coal
PI=1 benchmark
4
PI=2 2,5 km3
2
5,0 km3
0
Depth (meters): 7.000 8.000 9.000 10.000
Temperature: 290ºC 330ºC 370ºC 410ºC
Total capacity: 31-53 MW* 58-72 MW* 96 MW* 126 MW*
* Based on 4 injection + 5 production wells per power plant and reservoir size of 2,5 km3
10 Feb 2010 Geothermal power – cheaper than coal – version 11 summary 10
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11. HOW CHEAP IS COAL
Google’s ‘cheaper than coal’ investment benchmark is 3,0 million
euro per MW electric
Cost comparision [euro/kWh]
Assumptions
0,054 0,054 – Coal price is 89 $/ton (January 2010)
-
– Investment life time is 20 years, both for coal
and geothermal power
0,021
Investment: – Interest rate is 8%
0,039 3,0 Million
– Investment for coal fired plant with CO2
euro per MW
Investment: capturing facility is 1,8 million euro
1,8 Million – 1 euro is 1,40 dollar
euro per MW 0,023
– Maintenance and operations cost for coal fired
power is 0,010 euro/kWh
0,015 – Maintenance and operations cost for
0,010
geothermal power is 0,015 euro/kWh due to a
lower degree of economies of scale
Coal 89 $/ton Geothermal power
Maintenance & operation Capital Fuel
10 Feb 2010 Geothermal power – cheaper than coal – version 11 summary 11
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12. ULTRA DEEP DRILLING
Although ultra deep drilling is difficult, it is not impossible
Depth (meter)
Depth (meter)
Project
Project Water
Water Earth
Earth Total
Total
Tashen No. 1 Well
Tashen No. 1 Well 2006 China
2006 China 8.408
8.408 8.408
8.408
Chuanke No.1 Well
Chuanke No.1 Well 2007 China
2007 China 8.875
8.875 8.875
8.875
Kontinentale Tiefbohrprojekt (KTB)
Kontinentale Tiefbohrprojekt (KTB) 1994 Germany
1994 Germany 9.101
9.101 9.101
9.101
Knotty Head Well
Knotty Head Well Gulf of Mexico
Gulf of Mexico 10.420
10.420
Kola Peninsular --SG-3
Kola Peninsular SG-3 1989 Russia
1989 Russia 12.262
12.262 12.262
12.262
Drilling rig
Drilling rig Water
Water Earth
Earth Total
Total
PPL Shipyard --Deep Driller 1
PPL Shipyard Deep Driller 1 2006 Singapore
2006 Singapore 9.140
9.140
Rig owned by Sinopec
Rig owned by Sinopec 2006 China
2006 China 12.000
12.000
Discoverer Clear Leader
Discoverer Clear Leader 2009 Gulf of Mexico
2009 Gulf of Mexico 3.658
3.658 8.534
8.534 12.192
12.192
Sevan Driller
Sevan Driller 2009 China
2009 China 4.200
4.200 9.300
9.300 13.500
13.500
10 Feb 2010 Geothermal power – cheaper than coal – version 11 summary 12
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13. PROPOSED CONFIGURATION
To reduce risk and optimise well flow rate a configuration with
3 doublets is proposed
150 l/s 150 l/s
150 l/s 150 l/s
10.000 m
150 l/s 150 l/s
1000 m
Injection well
Reservoir
Production well
10 Feb 2010 Geothermal power – cheaper than coal – version 11 summary 13
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14. CURRENT STATUS
Partner organisations are building a consortium and making
preparations to execute the project
Partner organisations
– Grontmij
• Experience with engineering, designing and building geothermal power plants
• Ability to execute detailed engineering in various area’s
• Approx. 8000 professionals, active in many industries
– IF technology
• Subsurface and Geothermal engineering services
• Approx. 60 geologists, hydro-geologists, civil-, mechanical- and well engineers
– Well Engineering Partners
• Drilling and well engineering services
• Managing Directors have over 20 years of relevant Shell experience
– Bright Capital Partners
• Financial, tax and subsidy services
• Created financial structure and arranged financial funding for Q7 off shore
windturbine park
10 Feb 2010 Geothermal power – cheaper than coal – version 11 summary 14
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15. CURRENT STATUS
The consortium is preparing to approach potential investors and
sponsors
Status
– Parties are building a consortium in order to realise an ultra deep project
– Project plan has been composed
– Location selection process has started
– Vision on reservoir engineering has been prepared
– High level plan on ultra deep drilling has been presented by Well Engineering
Partners
– Contacts has been established with Dutch ministries of economic affairs (EZ)
and environment (VROM)
10 Feb 2010 Geothermal power – cheaper than coal – version 11 summary 15
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16. More information is available
General
• A sense of urgency
– http://www.slideshare.net/mgankema/sense-of-urgency-climate-and-energy-issues
• Comparing wind, solar, coal and geothermal power
– http://www.slideshare.net/mgankema/geothermal-power-financial-comparison
• Ultra deep geothermal power – cheaper than coal
– http://www.slideshare.net/mgankema/geothermal-power-cheaper-than-coal
Technical
• Ultra deep drilling *
• Reservoir Engineering *
• Seismic activity *
• Production flow rates *
• Determining very deep temperatures *
Financial
• Business case *
**For these presentations please contact us
For these presentations please contact us
10 Feb 2010 Geothermal power – cheaper than coal – version 11 summary 16
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17. For more information, feedback or questions, please contact us
Contact details
Mark Gankema
Genter Str. 8, 50672 Cologne, Germany
Telephone: +49 (0)221 467 597 35
Mobile: +49 (0)178 1969 963
E-mail: mgankema@gmail.com
Thank you very much for your attention!
Mark Gankema
December 2009
Cologne, Germany
10 Feb 2010 Geothermal power – cheaper than coal – version 11 summary 17
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