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Permalink Reply by Walker on Friday

Attached is the summary of a study of geothermal by UT

Attachments:

• FutureGeothermalTexasExecutiveSummary.pdf, 6.6 MB

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Permalink Reply by Skip Peel - Mineral Consultant on Friday

Thanks, Walker.  The recently published US map showing areas that are prospective for geothermal includes the entire Ark-La-Tex region.  The question may end up being a political one in an area where new electric generation may turn into a competition between geothermal and natural gas fired generation particularly for site specific applications like data centers.

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Permalink Reply by Skip Peel - Mineral Consultant on Friday

In rural Colorado, these abandoned oil wells could soon be used to ...

One way to cut the cost of geothermal energy: Use former oil wells instead of drilling.

BY Adele Peters  fastcompany.com

Outside the small town of Pierce, Colorado, a group of old wells were shut down six years ago when they stopped producing oil. But a startup now wants to repurpose the wells for a geothermal energy system that could help heat local homes.

Building new geothermal power—a type of clean energy that uses heat from underground to produce electricity or heating and cooling—is usually expensive because of the need to drill deep below the ground. That’s why Gradient Geothermal wants to reuse existing wells.

“If you can remove the cost of drilling through the use of facilities that are already there, you go a long way toward making geothermal a really inexpensive way to access the heat that’s in the earth,” says Benjamin Burke, Gradient’s CEO.

The wells on the site are 9,000 feet deep. The amount of heat at a given depth varies depending on location—Nevada, for example, has more geothermal potential than Colorado. But the site in Pierce “is at a depth where there’s plenty of heat for the town,” Burke says.

Gradient Geothermal is one of several companies to get state grants to test various approaches to adding geothermal energy in Colorado. Over the next several months, the startup will be studying the feasibility of the system for the site, looking at what it would take to build, how many buildings it can support, the cost, and the potential greenhouse gas emissions reductions. Already, the company has piloted the reuse of oil wells on another 40-year-old oil field in Nevada that’s still in operation; in that case, the energy is being used to help power the oil company’s operations.

In Pierce, when the oil wells shut down, they were producing only around 2% oil and 98% hot water. If Gradient’s plan moves forward as it envisions, it will harness that hot water and send it to a central facility where the heat is exchanged with a separate system of pipes that run in a network around the town, heating and cooling homes and other buildings, including a school and a meatpacking plant. (The geothermal power will also provide a small amount of electricity to power the company’s own operations.)

Even the town’s sidewalks could potentially be heated, removing snow and ice in the winter. Gradient is partnering with other companies that helped design a geothermal heating network for Colorado Mesa University. Installing the piping would be relatively inexpensive, Burke says, and the project could likely be supported through a mix of funding, including state and nonprofit grants.

“Right now [the town] heats with predominantly natural gas, and sometimes wood stoves,” says Johanna Ostrum, Gradient Geothermal’s COO. “So, our goal here is to provide a benefit, create an opportunity for the town, and really build a pathway for emissions reduction.”

Operating a geothermal plant uses similar skills as working in oil and gas, Ostrum says, and the facility could provide new local jobs for people who previously worked in the oil industry. “The town is looking for growth and new businesses, so they view this as an opportunity to develop and potentially add new jobs,” she says.

In a separate project that also received a state grant, a company called Geothermal Technologies is exploring the possibility of drilling new geothermal wells on a local dairy farm to help provide electricity for the town.

Gradient’s feasibility study will run until next fall, and then the project would have to get funding to move forward. But the model could eventually be replicated. Chevron, which owns the oil field, is partnering on the project with an interest in potentially using the approach on some of its other sites, some of which might also be able to help power nearby communities.

“A lot of the oil fields in the United States have small towns in and amongst them,” Ostrom says. By some estimates, there are between 2 million and 3 million abandoned oil wells in the U.S.

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Permalink Reply by Les on Monday

Fascinating technology and discussion. Here in NW Louisiana we have many abandoned wells that seemingly would be ideal for harnessing this form of energy. Wonder how the economics would work for making this a viable, new energy source. Would existing O/G companies pivot and retrofit abandoned wells or would new entrepreneurs be enticed to purchase/lease these abandoned wells and proceed independent of the O/G industry? Will this be profitable to the developers and affordable to the end users? Would current mineral rights owners benefit in any way? Lots of unanswered questions. Thanks for posting.

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Permalink Reply by Skip Peel - Mineral Consultant on Monday

Good questions all, Les.  Let's start with the fact that Haynesville wells have bottom hole temps that are hot enough for geothermal.  At this point I'm unsure if the existing wells are correctly connected as is for geothermal.  If they are or can be refracked to communicate correctly, that would be ideal but even if new wells needed to be drilled it could be profitable.  I expect all Haynesville operators are aware of the potential.  If they don't want to fund the work, I think investors would be interested as would operators of plants that need the uninterrupted, reliable electricity generated.  The Data Center in Richland Parish being a good example but other industries requiring significant electric service could be potential users whether they fund the projects themselves or sign usage agreements with investors.  Thanks for contributing to the thread.

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Permalink Reply by Skip Peel - Mineral Consultant yesterday

The Future of Geothermal Energy

https://www.iea.org/reports/the-future-of-geothermal-energy?utm_cam...

Highlights:

• Today, geothermal only covers about 1% of global electricity consumption, but new technologies mean it could meet 15% of global electricity demand growth between now and 2050 if project costs continue to decline. That would give it the third largest share of global electricity generation growth after solar and wind.
• This would involve the deployment of as much as 800 gigawatts of geothermal capacity worldwide, delivering annual output equivalent to the current electricity demand of the United States and India combined.
• The report finds that policy and regulatory measures could enable geothermal costs to fall by 80% by 2035. This would put geothermal on a par with existing hydropower and nuclear plants – and it would also be highly competitive with solar PV and wind paired with battery storage.
• The oil and gas industry can play a key role in making geothermal more competitive. Up to 80% of the investment required in geothermal involves capacity and skills that are transferrable from existing oil and gas operations
• The total investment in geothermal could reach $1 trillion by 2035 and $2.5 trillion by 2050. If next-generation geothermal grows strongly in the coming years, employment in the overall geothermal sector could increase sixfold to 1 million jobs by 2030, according to the report.
• At a time when the digital economy and artificial intelligence applications are growing strongly, geothermal has strong potential to help power the increasing number of large data centres that underpin the tech sector.

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