Developers plan $44m advanced geothermal project in Oregon

June 9, 2010

The federal government is funding research to determine the potential for EGS energy systems, which are being tried in sites like this one at the Coso Geothermal Powerplant, California
Geothermal energy developers AltaRock Energy and Davenport Newberry have announced plans for a $44 million project to demonstrate Enhanced Geothermal Systems (EGS) in Oregon.

Unlike conventional geothermal projects, which seek out existing underground thermal reservoirs to extract hot water for power generation, EGS projects create their own reservoirs in suitable geology, pumping water down into the ground to be heated by the Earth.

AltaRock and Davenport said yesterday they will use conventional drilling to establish reservoirs on Federal land outside the Newberry National Volcanic Monument, about 30 miles south of Bend in central Oregon.

The project is co-funded by the US Department of Energy’s Geothermal Technology Program to the tune of $21.45 million, with $22.36 million put up by the AltaRock-Davenport partnership.

As well as attempting to advance the use of EGS technology in the US, the demonstration should also benefit research efforts at the Universities of Oregon and Utah, Texas A&M, Temple University, Lawrence Berkeley National Laboratory and the US Geological Survey.

Plans are subject to permits being agreed by federal and state officials, and any impacts on the environment will be monitored closely, the developers said.

Input

Doug Perry, President at Davenport Newberry, said: “We see this project as a true public-private collaboration, and we welcome input from government officials and community members.

“We seek nothing less than an ongoing 360-degree conversation with all parties. In addition, we’ve studied the science, refined the technology, and listened attentively to the community; we’ve also tried to use and deploy thoughtful planning and control systems,” said Mr Perry.

Creating an EGS reservoir involves drilling down deep into the ground to find naturally permeable rock at a suitable temperature for heating water enough to drive a steam turbine and generate power.

We’ve studied the science, refined the technology, and listened attentively to the community” - Doug Perry, Davenport Newberry

Once a suitable location has been found, a high-pressure injection of water is forced into the rock formation to force open the pores in the rock, in order to create an underground reservoir. Once a reservoir is formed, water can be pumped down to be heated by the rock, returning through a production well to generate electricity.

EGS technology may not be suitable for some sites, and there have been concerns that there may be small risks of earthquakes linked to the injection of high-pressure water in seismically active areas.

“The Newberry project is subject to strict regulatory agency approval and will meet the requirements of the National Environmental Policy Act,” insisted Will Osborn, Project Manager for AltaRock Energy.

The Newberry project developers said yesterday that they believe EGS technology could supply up to 10% of America’s electricity needs within 50 years, “at prices competitive with fossil-fuel fired generation”.

They see particular importance for geothermal power as one of the few renewable power sources that can provide baseload power, a constant supply of electricity day or night.