15 MW Geothermal Energy Plant

1. 15 MW Geothermal Energy Plant Stephen Mc Loughlin Stephen Devlin Paul O Reilly Mark Flanagan

2. Project Introduction • Asked by interested investors to look into viability of investment in renewables - Particulary Geothermal. • Market gap for mid sized geothermal solution. • Fluctuation of fossil energy prices have made for a volatile market – Goethermal is a safe alternative. • Geothermal generation offers a dependable and constant source of revenue – costs are virtually unaffected by prevailing fuel prices. • Many geothermal plants have been in operation for years around the globe – Proven Reliability.

3. Presentation Brief • All aspects of planning and development of a geothermal plant in Ireland. • Planning Permission and Regulation. • Budget and Risk. • Timeline and project plan. • Suitable locations and technical aspects.

5. A Natural form of Energy • Heat Generated from decay of minerals • Worldwide use – Iceland geezers, thermal baths, New Zealand ect…. • 30 Degree temp rise for each KM drilled – Ireland • Considered to be sustainable – Takes little heat from overall • Not dependant on other energy sources • Low emissions and visual impact

6. Choosing A Suitable Location • High Temperature Gradient • Possibly at a natural fault line (Fracture) • Near Transmission or a large Industry • Near Supply of Water for Cooling • Good Surrounding Infrastructure • Reasonably priced Land – Private • Local Community impacts and planning

7. Temperature Gradient & Fault Lines

8. Transmission & Available Land and Water

9. Infrastructure

10. Planning and Regulation Five areas are of key importance relating to planning and regulation for this type of project. • Pre Planning negotiations • Environmental impact statement • Planning submissions • Planning appeals • Public consultations and awareness

11. Pre Planning negotiations • Local authority consulted from outset • Important first step prior to detailed plan • Consulted in all aspects of project • Informed of benefits to local community – job creation, clean energy ect… • Building relationships are key to this projects success

12. Environmental Impact Statement • An EIS is a tool for decision making • Lists the pros and cons of any environmentally related project aswell as suggesting alternatives • EPA annex 1 development ensures that EIS is mandatory • Forms part of the basis of planning • Environmental consultants are tasked with EIS

13. Planning submissions • Notice placed in local and national papers • Application lodged with local council within 2 weeks • 2-5 weeks required by council to assess development and allow for objection • Further 4 weeks required to allow appeals to be made to Bord Pleanala • If no objections within this timeframe final permission is granted

14. Public awareness / consultation • Transparent and open approach towards the community • Public meetings to hear local views and address concerns • Website and phone information service • Sponsorship of local evens Avoid poor communication as seen in Corrib pipeline project.

15. Regulation and Licensing • Commission for energy regulation – • Single energy market • Health and safety authority • Environmental protection agency • Lack of regulation • Publications forthcoming

16. Communication • What is Communication Planning- • Execution • Identify Your Stakeholders • Understand Your Stakeholders • Facilitation Methods • Prioritise Your Stakeholders • Mapping Stakeholders • Assign Time to Your Stakeholders

17. Identifying your stakeholders

18. Communication • What is Communication Planning- • Execution • Identify Your Stakeholders • Understand Your Stakeholders • Facilitation Methods • Prioritise Your Stakeholders • Mapping Stakeholders • Assign Time to Your Stakeholders

19. Mapping Stakeholders Keep Satisfied Manage closely Monitor Keep informed

20. Risk – Barriers • High initial capital costs. • Planning, permit and legislation – any changes hold up project. • Pre build risks – survey errors and research oversight. • Geographical risk–Tremors, land subsidence, temperature decline • Environmental risk – fines and penalties. • Failure of Equipment or injection/production Wells • Cost over runs over the life of the project. • Very little information of deep geology in Ireland • Lack of supporting funding schemes • Inappropriate regulatory framework

21. Risk Mitigation • Government cost sharing and grant schemes. • Large database of research and operation projects. • Be informed of up to date technical information and associated risk. • Tax incentives. • Funding From Sustainable Energy Authority (SEAI) • Renewable Energy Feed-In Tariff (REFIT) • Having a Power Purchase Agreement in place - help to raise financial support • Risk insurance schemes – state sponsored like in Germany – never claimed • Guaranteed loan structure.

22. Project plan & Timeline

23. Budget and Finance • A project like this is capital intensive – big money first. • Early expenses but in the long term fuel costs are down. • From a technical standpoint drilling is largest resource draw @ 10 million per well • Aim to generate into the base load market • This type of plant is ideal base load –high availability

24. Budget figures • Assumed Online Availability Factor of 95% • Operation and Maintenance Costs1 cent per kWh • Production prices of about 5-7 cent per kWh • Base load energy price of 12 cent per kWh • 5 cent made on every kWh sold • Plant can be developed for 3000 euro per KW generation average

25. Budget & Finance

26. Technical aspects of project • Kinegad location shows a 90 degree gradient – perfect for binary cycle plant. • Expected thermal efficiency of 10 – 13% • System is “closed loop” No emissions to atmosphere • Takes nothing but heat – water goes back down • Expected to generate at 20kV – 15 MW output. • Plant is high availability, little downtime once operational – ideal base load generator.

28. Environmental impact • Geo generation is far cleaner then thermal plants such as coal, oil ect…. • No negative effect on climate change • Plants of this type are low profile – surrounding area not badly affected. • The right balance must be struck regarding heat extraction • Geothermal water can be toxic – must not be released • Steam is only byproduct – large plumes can be seen from this type of plant

29. Benefits of Geothermal Energy • Not dependant on climate – Available 24/7 • Secure, Reliable and Unlimited Energy Supply • Decreases dependency on fossil fuels • Price of energy will not change • Low Emissions and minimum Visual impact • No Air or Water Pollution • Only small amount of land required • Running costs are very low • Helps government to achieve energy and emissions targets