President Obama Announces Over $467 Million in Recovery Act Funding for Geothermal and Solar Energy Projects
WASHINGTON – President Obama today announced over $467 million from the American Reinvestment and Recovery Act to expand and accelerate the development, deployment, and use of geothermal and solar energy throughout the United States. The funding announced today represents a substantial down payment that will help the solar and geothermal industries overcome technical barriers, demonstrate new technologies, and provide support for clean energy jobs for years to come. Today’s announcement supports the Obama Administration’s strategy to increase American economic competiveness, while supporting jobs and moving toward a clean energy economy.
“We have a choice. We can remain the world’s leading importer of oil, or we can become the world’s leading exporter of clean energy,” said President Obama. “We can hand over the jobs of the future to our competitors, or we can confront what they have already recognized as the great opportunity of our time: the nation that leads the world in creating new sources of clean energy will be the nation that leads the 21st century global economy. That’s the nation I want America to be.”
“We have an ambitious agenda to put millions of people to work by investing in clean energy technology like solar and geothermal energy,” Energy Secretary Steven Chu said. “These technologies represent two pieces of a broad energy portfolio that will help us aggressively fight climate change and renew our position as a global leader in clean energy jobs.”
Geothermal Energy
Geothermal energy is a clean source of renewable energy that harnesses heat from the Earth for heating applications and electricity generation; geothermal plants can operate around the clock to provide significant uninterrupted “base load” electricity, or the minimum amount a power utility must provide to its customers.
The Recovery Act makes a $350 million new investment in this technology, dwarfing previous government commitments. Recovery Act funding will support projects in four crucial areas: geothermal demonstration projects; Enhanced Geothermal Systems (EGS) research and development; innovative exploration techniques; and a National Geothermal Data System, Resource Assessment and Classification System.
* Geothermal Demonstration Projects ($140 Million)
Funding will support demonstrations of cutting-edge technologies to advance geothermal energy in new geographic areas, as well as geothermal energy production from oil and natural gas fields, geopressured fields, and low to moderate temperature geothermal resources.
* Enhanced Geothermal Systems Technology Research and Development ($80 Million)
Funding will support research of EGS technology to allow geothermal power generation across the country. Conventional geothermal energy systems must be located near easily-accessible geothermal water resources, limiting its nationwide use. EGS makes use of available heat resources through engineered reservoirs, which can then be tapped to produce electricity. While the long-term goal of EGS is to generate cost competitive clean electricity, enabling research and development is needed to demonstrate the technology’s readiness in the near-term.
* Innovative Exploration Techniques ($100 Million)
Funding will support projects that include exploration, siting, drilling, and characterization of a series of exploration wells utilizing innovative exploration techniques. Exploration of geothermal energy resources can carry a high upfront risk. By investing in and validating innovative exploration technologies and methods, DOE can help reduce the level of upfront risk for the private sector, allowing for increased investment and discovery of new geothermal resources.
* National Geothermal Data System, Resource Assessment, and Classification System ($30 Million)
The long-term success of geothermal energy technologies depends upon a detailed characterization of geothermal energy resources nationwide. In 2008, the United States Geological Survey (USGS) conducted an assessment of high temperature resource potential in the Western United States. To fully leverage new low-temperature, geopressured, co-production, and EGS technologies, DOE will support a nationwide assessment of geothermal resources, working through the USGS and other partners. Second, DOE will support the development of a nationwide data system to make resource data available to academia, researchers, and the private sector. Finally, DOE will support the development of a geothermal resource classification system for use in determining site potential.
Solar Energy
Solar energy is a rapidly expanding industry with a double-digit annual growth rate in the United States. DOE is focused on supporting the U.S. industry’s scaling up of manufacturing, production, and distribution so the technology can become cost competitive with conventional sources of energy. DOE will provide $117.6 million in Recovery Act funding to accelerate widespread commercialization of clean solar energy technologies across America. These activities will leverage partnerships that include DOE’s national laboratories, universities, local government, and the private sector, to strengthen the U.S. solar industry and make it a leader in international markets.
* Photovoltaic Technology Development ($51.5 Million)
DOE will expand investment in advanced photovoltaic concepts and high impact technologies, with the aim of making solar energy cost-competitive with conventional sources of electricity and to strengthen the competitiveness and capabilities of domestic manufacturers.
* Solar Energy Deployment ($40.5 Million)
Projects in this area will focus on non-technical barriers to solar energy deployment, including grid connection, market barriers to solar energy adoption in cities, and the shortage of trained solar energy installers. Combined with new technology development, these deployment activities will help clear the path for wider adoption of solar energy in residential, commercial, and municipal environments.
* Concentrating Solar Power Research and Development ($25.6 Million)
This work will focus on improving the reliability of concentrating solar power technologies and enhancing the capabilities of DOE National Laboratories to provide test and evaluation support to the solar industry.
GEOTHERMAL DRILLING FUNDING ANNOUNCED
The Minister for Resources and Energy, Martin Ferguson AM MP, today announced the successful applicants for funding under the first round of the Government’s Geothermal Drilling Program.
The Geothermal Drilling Program will support the high cost of drilling deep geothermal wells by providing grants of up to $7 million on a matching funding basis. Funding will also help finance geothermal proof-of-concept projects.
Geothermal energy producers pump water below ground (sometimes as deep as 5 km), where it is heated by ‘hot rocks’. The heat energy is then used to generate electricity.
Minister Ferguson said: “Geoscience Australia estimates that if just one per cent of Australia’s geothermal energy was extracted it would equate to 26,000 times Australia’s total annual energy consumption. This extraordinary potential is one of the reasons the Australian Government is making this investment in geothermal energy as part of the $500 million Renewable Energy Fund.
“In addition to being a low-carbon energy source, geothermal energy also has the potential to add baseload power to the Australian energy grid. This would diversify Australia’s energy supply and add to our overall energy security.”
“There is strong interest in the Geothermal Drilling Program and I congratulate the successful round one applicants. Unsuccessful applicants and other interested parties are welcome to submit applications in later rounds, with round 2 applications opening around mid-year.”
The two successful companies are MNGI Pty Ltd and Panax Geothermal Limited.
MNGI Pty Ltd – $7 million grant subject to successful offer negotiations
The Paralana Geothermal Energy Project is an engineered geothermal system (EGS) project which aims to demonstrate a successful, robust and innovative geothermal heat exchanger in the Adelaide Fold Belt met sedimentary rocks at Paralana. It aims to prove EGS technology with the innovative heat exchanger within insulator (HEWI) model that will bring forward geothermal development and investment across Australia by considerably lowering drilling costs and risks.
Panax Geothermal Limited – $7 million grant subject to successful offer negotiations
The Limestone Coast Geothermal Project is designed to deliver the first conventional geothermal energy development based on a deep and insulated sedimentary basin heated by conduction from underlying hot basement rocks. Success will prove the concept for the Limestone Coast where a resource potential of around 1500 MW has been inferred and will open up a new geothermal play for Australia. The Limestone Coast Geothermal Project is based on the concept that commercially viable geothermal reservoirs can be utilised in deep sedimentary business basis where they are buried under a thick layer of sedimentary rocks with low thermal conductivity.
Media contact: Michael Bradley – 0420 371 744
Nevada Geothermal Power Inc. Completes Successful Production Well Drilling for Blue Mountain ‘Faulkner 1′ Geothermal Power Plant
Construction Update
VANCOUVER, BRITISH COLUMBIA–(Marketwire – March 25, 2009) – Nevada Geothermal Power Inc. (NGP) (TSX VENTURE:NGP)(OTCBB:NGLPF) today announced that production drilling is complete for the Blue Mountain ‘Faulkner 1′, 49.5 MW (gross) binary cycle geothermal power plant. The latest three production wells (14-14, 15-14 and 17-14) based on initial testing, have similar production capacities (7.0 – 7.5 MW (net) each) to the original three wells (23-14, 25-14 and 26A-14).
NGP has two completed injector wells (58-15 and 58A-15) and is currently drilling two additional injector wells (57-15 and 61-22).
The power plant construction under the fixed price, date certain Engineering Procurement Construction (EPC) contract with Ormat Inc., a subsidiary of Ormat Technologies Inc. (NYES:ORA), has made great strides over the last six weeks, and NGP is delighted to provide you with the following status report:
- Control, administration and maintenance building nearing completion;
- Vaporizers, diffusers, and condensers are installed;
- Three generators delivered and installed on foundations;
- Cooling tower frame erection commenced;
- Ormat to deliver first set of power turbines by the end of March;
- Switchyard structure has advanced to construction;
- ‘Faulkner 1′ substation construction commenced;
- Wilson Utility has commenced construction of the 21-mile power transmission line (T-line) that connects the ‘Faulkner 1′ T-line to the NV Energy switching station at Mill City with completion expected at the end of May 2009.
To view progress at Blue Mountain, please click on the link to view slideshow: http://www.nevadageothermal.com/i/PhotoGallery/BMMar2009/Slideshow.html or go to our website: www.nevadageothermal.com and click on Gallery section.
About Nevada Geothermal Power Inc.:
Nevada Geothermal Power Inc. is an emerging renewable energy developer focused on producing clean, efficient and sustainable geothermal electric power from high temperature geothermal resources in the United States. NGP currently owns a 100% leasehold interest in four properties: Blue Mountain, Pumpernickel, and Black Warrior (all of which are ideally situated in Nevada), and Crump Geyser in Oregon. These properties, which are at different levels of exploration and development, are estimated to have the potential for the generation of over 200 MW.
NGP’s phase 1 development at Blue Mountain, ‘Faulkner 1′ 49.5 MW gross power project is On the Road to Revenue and is expected to be Turning on the Power during the fourth quarter of 2009.
U.S. Still Reigns in Geothermal, but the Philippines Could Take Over
Iceland is often on people’s minds when discussing geothermal energy. The country certainly has been tapping this resource for about a century. But the United States remains the largest geothermal energy producer in the world, having 2.2 gigawatts of production capacity, said Mark Taylor, a market research analyst at New Energy Finance.
Production tax credit has greatly boosted the industry’s expansion in the country. Investments in geothermal grew 97 percent from 2002 to 2008. Investments went up 38 percent to reach about $2.44 billion in 2008 from 2007. Most of the geothermal resources in the United States are located on public land, which is just being opened up for exploration after years of being unavailable to private developers.
Bernie Karl extracts energy from the ground
Chena Hot Springs is miles away from an energy grid. Expensive diesel fuel, energized Bernie Karl’s motivation to find a new source of electricity. He knew the Chena Hot Springs were a potential source of energy, but no model existed for him to follow to harness the power he saw emanating from the ground. Many experts believe that the new green economy will follow the lead of innovators like Karl.
Geothermal technologies had been based on water much hotter than the waters available at the Chena Hot Springs. His water never reached boiling, so a steam-driven turbine wouldn’t work. Karl was undeterred. He partnered with United Technologies Corporation (UTC) to demonstrate moderate temperature geothermal power plant technology. In a technology Karl describes as “moving hot water around” pressure develops to move turbines.
Raser ready to flip the switch on Beaver geothermal plant
Within the next week, Raser Technologies Inc. expects to begin transmitting around 7 megawatts of electricity generated at its new geothermal plant outside of Beaver to the city of Anaheim in Southern California.
Raser is touting the Millard County plant as a breakthrough in geothermal energy production — one capable of generating electricity from low-temperature wells that until now weren’t viewed as hot enough to produce power.
“We’re now ready to begin ramping up the plant,” said Richard Putnam, spokesman for the Provo-based Raser Technologies. “This is a big step for our company, and for geothermal energy production in this country.”
Initially, Raser will be sending Anaheim 7 megawatts of power but that amount will rise to 10 to 11 megawatts during the next several weeks as the company finishes linking additional geothermal wells to the plant.
Anaheim will be paying $78 per megawatt-hour for the electricity, or about 30 percent to 40 percent more than the cost of electricity generated at a coal-fired plant. A megawatt is enough electricity to serve about 750 homes.
Geothermal Power Continues Strong Growth, New Industry Report Shows
Washington, DC — A new report by the Geothermal Energy Association (GEA) shows
strong growth in new geothermal power projects continuing into 2009. “There has been a
25% increase in new geothermal projects from August of 2008, when the last GEA report
was released. There is also an increase in overall production potential by 35%,” notes
Kara Slack, the report’s author.
The report also notes that the number of states producing geothermal power has increased
from 7 to 8 with the addition of Wyoming. “Geothermal power projects continue to
move forward, with new projects being added at an increasing rate,” according to Karl
Gawell, Executive Director of GEA.
The report identifies a total of 126 projects under development with the potential to put
5,500 MW of new geothermal power on line, equivalent to 15,000 MW – 20,000 MW
from wind turbines or enough power for 5.5 million California homes, according to GEA.
New geothermal power projects were identified in Alaska, Arizona, California, Colorado,
Florida, Hawaii, Idaho, Nevada, New Mexico, Oregon, Utah, and Washington.
“It is great to see that between August 2008 and March 2009, there was a jump of about
1,500 MW in new geothermal projects,” remarks Slack. “Interest in geothermal
development continues to grow. We are seeing new entrants to the industry, in part
because of new leasing by BLM and several new projects by the U.S. Navy,” she adds.
According to the GEA report, Nevada, with 58 confirmed projects, has the most
production under development. California is second with 27 projects, followed by Idaho,
Oregon, Utah, and Alaska, respectively.
“The report shows a substantial movement of projects into the later stages of
development, the permitting and construction phases,” Gawell points out. “If federal and
state governments give them the support and priority they need, most of these projects
could be on line in a few years.” GEA estimates that bringing these projects on line could
help economic recovery, spurring as many as 100,000 new jobs.
Copies of U.S. Geothermal Power Production and Development Update, March 2009 are
available to download free of charge from the GEA Web site at: http://www.geoenergy.
org.
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