Leading news: GEA Members’ Experiences Key in Today’s Energy World

“This week’s top news for geothermal development and GEA members”

In this post, read about the Geothermal Energy Association’s latest activities, including the upcoming National Geothermal Summit and a newly released geothermal manual; a new DOE solicitation; and more leading news from the geothermal industry and GEA members.

But first, the visual below shows a typical work flow for geological exploration of geothermal systems:

The methodology is outlined in the newly released “Best Practices for Geothermal Power Risk Reduction Workshop Follow-Up Manual,” and includes:

1. Conducting detailed geologic mapping
2. Identifying stratigraphic horizons (i.e., specific rock units) that may serve as permeable subsurface reservoirs
3. Defining the structural setting and mapping faults in and around the geothermal system
4. Evaluating fault patterns and stress conditions to estimate the tendency for slip and dilation along mapped faults
5. Defining areas where permeability should be enhanced through fault slip and dilation (i.e., play fairways)
6. Integrating geothermal well data (if available) and geophysical data
7. Preparing a 3D model of the geothermal system
8. Selecting drilling locations that target potential play fairways

As the manual explains, following this method and carefully applying a structural settings approach is particularly useful when exploring for “blind” geothermal systems, i.e., those without surface thermal manifestations such as hot springs or fumaroles. See the press release about the publication in this post. Read the new manual in full on GEA’s Web site.

Click below to keep reading “This week’s top news for geothermal development and GEA members”

*Thank You to GEA Members
*Geothermal Helping California Achieve a Clean Power Future (National Geothermal Summit)
*Geothermal Risk Reduction Manual Released
*DOE Solicits Renewables Projects in $4 Billion Loan Guarantee Program
*Geothermal Company Builds Village for Maasai Community in Kenya
*Calpine Corporation Announces Pricing of Senior Unsecured Notes Offering

Thank You to GEA Members
Juliana Glenn, GEA staff–GEA would like to extend a sincere “Thank You” to all of our members, who supply the funding and support needed to make this newsletter and blog possible, as well as everything GEA does to promote the geothermal industry. Anyone involved in the geothermal industry has interests that are tied in with the successful execution of GEA’s advocacy, public relations, market development, and other activities. We hope companies who are not currently members will consider joining GEA, so that we can continue to provide you with these tools.

A GEA membership will also directly benefit your company through our membership benefits. If you are interested in a GEA membership, please fill out an application from our Web site or contact Juliana (Juliana@geo-energy.org).

If you are not a GEA member, please join us in thanking our member companies:

4i’s CNMI, LLC
Adams Valves, Inc.
Agua Caliente
Almar Professional Land Services, Inc.
Alstom Power
AltaRock Energy, Inc.
Alternative Earth Resources, Inc.
Alterra Power
AMSA, Inc.
Ashland, Inc.
A-T Controls, Inc.
Baker Hughes
Bakersfield Pipe and Supply, Inc.
Berkshire Hathaway Energy
Black Pine Engineering
Bob Lawrence & Associates
Calpine Corporation
Campbell Scientific, Inc.
CanbyGeo LLC
Capuano Engineering Company
Chadbourne & Parke LLP
Consent Energy, LLC
Controlled Thermal Resources
Cornell Energy Institute
Cornerstone Sustainable Energy, Inc.
Cyrq Energy, Inc.
Daldrup & Soehne AG
Dewhurst Group
Domain-5, LLC
Domenic J. Falcone & Associates
DOSECC Exploration Services, LLC
Drill Cool Systems, Inc.
EGS, Inc.
ElectraTherm, Inc.
Enel Green Power North America, Inc.
EthosEnergy Group
EvapTech, Inc.
Gemini Enterprises, Inc.
Geologica, Inc.
GeoTek Energy LLC
Geotemps, Inc.
Geothermal Development Associates
Global Power Solutions, LLC
Gradient Resources
Grupo Dragon
Hanjin D&B
Holland & Hart
Horizon Well Logging, Inc.
Hydro Resources
Imperial Irrigation District
Industrial Builders
Industrial Cooling Solutions, Inc.
ING Capital LLC
Jim Ray Co., Inc.
John M. Phillips
Kelly Pipe Co., LLC
KMS Technologies-KJT Enterprises Inc.
Kodali, Inc.
Layman Energy Associates, Inc.
Leidos Corporation
Locke Lord LLP
Maarky Thermal Systems
Maevelle Energy LLC
Magee Geophysical Services, LLC
Mannvit Engineering
Maxidrill, Inc.
Mine-NRG, Inc
Mink GeoHydro Inc.
Mitsubishi Power Systems, Inc.
Naknek Electric Association, Inc.
Northern California Power Agency
NV Energy
Ormat Technologies, Inc.
Pagosa Verde, LLC
Panorama Environmental
Patagonia Financial Holdings
Paul Graham Drilling & Service Co
Paulsson, Inc.
PB Power
Perkins Coie LLP
POWER Engineers
Precise Propellant Stimulation, LLC
Ruen Drilling, Inc.
Scientific Drilling International
SNC-Lavalin Constructors Inc.
Southern Methodist University Geothermal Lab
SPX Heat Transfer LLC
Starlight Investments
Stoel Rives LLP
T & T Bit Service, LLC
TAS Energy, Inc.
Terra-Gen Power, LLC
Thermaprime Well Services, Inc.
ThermaSource, Inc.
Thermochem, Inc.
Torishima Pump Mfg. Co., Ltd
Toshiba International Corporation
University of Nevada, Reno
US Geothermal, Inc.
Van Ness Feldman, PC
Vooner FloGard Corporation
Wanzek Construction
Webco Industries, Inc.
Well Analysis Corporation
Western Cultural Resource Management, Inc.
Wilson Sonsini Goodrich & Rosati
Wood Group Field Services

Geothermal Helping California Achieve a Clean Power Future (National Geothermal Summit)
Press Release (Reno, Nev.) July 9–National Geothermal Summit To Encourage Expansion of the West’s Geothermal Power–The Geothermal Energy Association (GEA) will hold its fourth annual National Geothermal Summit Tuesday, August 5 and Wednesday, August 6 in Reno, Nevada. Renewable energy development in California is expected to be at the center of many conversations. The leading forum for western state policy discussions, the National Geothermal Summit will bring together policy leaders, utilities and industry professionals to discuss the opportunities and challenges facing the industry.

“California has ambitious climate goals. Fortunately, it also has the geothermal resources and potential to access those goals,” said GEA Executive Director Karl Gawell. “GEA anticipates that the Summit will spur many productive conversations powering the state’s geothermal development.”

Key California players participating in this year’s Summit include Senator Ben Hueso, California 40th District; Carl Stills, Energy Manager, Imperial Irrigation District; Tracy Sizemore, Vice President of Business Development, Simbol Materials; Andy Horne, Deputy County Executive Officer, County of Imperial; Barry Dong, Manager Geothermal/Biomass, Los Angeles Department of Water and Power (LADWP); V. John White, Executive Director, CEERT; Rob Oglesby, Executive Director, California Energy Commission; Karen Edson, Vice President, Policy and Client Services, California ISO; Vince Signorotti, Vice President of Resource & Real Estate Assets, EnergySource; Jim McIntosh, Senior Vice President of Operations, Z-Global; and Arne Olson, Partner, Energy and Environmental Economics, Inc (E3).

GEA recently issued a status report on California’s geothermal resources that says they are still largely untapped. The report found that the Salton Sea Known Geothermal Resource Area is considered by many to be the best opportunity for growth in California in the near term. A panel held the afternoon of August 6 will discuss how industry and the public sector can work together to achieve the potential of Southern California’s Salton Sea. The discussion follows March’s formalization of the Salton Sea Restoration and Renewable Energy Initiative, an effort to further fund the development of renewable energy in the Imperial Valley. Randy Keller, Director of Development, Transmission, and Land Assets, CalEnergy, will chair the panel discussion.

“Being the largest owner/operator of the most abundant geothermal field in North America, the Salton Sea Known Geothermal Resource, CalEnergy provides a clean baseload alternative – the most reliable renewable energy source available today. Our company has been operating in the Imperial Valley for more than 25 years and is leading recontracting efforts that promote geothermal procurement in the state to enable a reliable electrical grid,” Keller noted. “We believe geothermal generation is ideally suited to meet the ongoing renewable energy needs of California, and we look forward to participating in conversations surrounding opportunities and challenges facing geothermal energy, as well as the future of the industry.”

IID’s Stills will join the panel. “In the next decade, I see geothermal rightfully taking its place in the marketplace as a valuable, cost-effective, baseload resource. With its re-emergence and the shedding of coal and OTC generation, geothermal energy will add value to stabilizing the grid issue presented by intermittent resources present today,” Stills remarked. “I hope the Summit will energize the industry to promote baseload renewable energy and to actively support SB1139.”

“California leads the way in reducing dependence on fossil fuels and cleaning our air and our environment. Geothermal can help our state reach its goal of reducing greenhouse gas emissions to 1990 levels by 2020, in addition to restoring important environmental habitat,” noted Senator Hueso, who represents California’s 40th Senate District, including the cities of Chula Vista, National City, Imperial Beach, Coronado, a portion of the City of San Diego, Imperial County and the southern part of Riverside. “I want to continue learn more about geothermal to help educate my colleagues and constituents on the added benefits of this important renewable energy source. Engaging in a comprehensive dialogue about this important renewable energy source will help me develop real solutions in state policy that balance industry needs while protecting California ratepayers.”

“Geothermal energy plays an important role in helping California meet its renewable electricity goals,” said California Energy Commission’s Oglesby. “On a recent June day, geothermal power plants produced more than 12 percent of the state’s renewable energy. Yet we’re pursuing an even cleaner energy future and look forward to hearing from those in the geothermal industry on how they can help us get there.”

California has about 2,720 MW of geothermal power on-line and produced 13,230 GWh in 2012. The U.S. Geological Survey estimates that there are an additional 2,500 MW of discovered geothermal power resources in California and 11,000 MW of undiscovered resources.

Event and registration details for the National Geothermal Summit can be found at http://www.geo-energy.org/nationalgeothermalsummit/Main.aspx. For more information or to schedule an interview with a GEA representative, please contact Shawna McGregor, The Rosen Group, 917 971 7852 or shawna@rosengrouppr.com.

Geothermal Risk Reduction Manual Released
In April 2014, the U.S. Department of State and the U.S. Geothermal Energy Association held a workshop that brought together leading experts to address steps to take to reduce the risk associated with geothermal power project development. Today, a manual based on the presentations and discussion at that workshop is being released.

The workshop was held at Washington’s Reagan Trade Center on April 23 as a follow-up activity to the GEA’s International Geothermal Showcase. The Showcase brought together geothermal experts, companies, and regulatory bodies from around the world. The workshop drew from those participants, and from the international financial institutions, to explore and develop best practices in geothermal exploration, drilling, policy and regulatory issues, and project management.

The document released today provides expert advice on four questions: (1) What are the policy, legal, and regulatory structures that need to be in place for a geothermal project success? (2) What are the best practices for geothermal exploration? (3) How do you conduct geothermal drilling cost- effectively? And (4) What are the best approaches to ensure successful geothermal project management?

“A global geothermal initiative has begun to explore opportunities to give geothermal energy a more prominent role in the global energy mixture,” the document explains. “As millions of dollars begin to be deployed, we hope these best practices and recommendations help reduce geothermal project risks and support geothermal energy becoming a more prominent technology in the global energy mixture.”

The Best Practices for Geothermal Power Risk Reduction Workshop Follow-Up Manual is available to download in PDF format, free of charge, from http://www.geo-energy.org/

DOE Solicits Renewables Projects in $4 Billion Loan Guarantee Program
Via DOE–On July 3, 2014, the Department of Energy (DOE), Loan Programs Office (LPO), released a final solicitation for innovative Renewable Energy & Energy Efficiency Projects (REEE) and will make as much as $4 billion in loan guarantees available to help commercialize technologies previously unable to obtain full commercial financing. “This program supports renewable energy technologies that are catalytic, replicable and market ready. It is a tremendous opportunity that will greatly assist the EITF and its stakeholders in the financing of large-scale Renewable Energy Projects on U.S. Army Installations,” said Ms. Amanda Simpson, EITF Executive Director. See also the Detailed Announcement and the REEE Solicitation (PDF).

Geothermal Company Builds Village for Maasai Community in Kenya
Local news in Kenya reports court action regarding Pastoralist Maasai communities, who live off the land in developing areas. The topic was addressed in September of last year by the World Bank, who released a statement saying it welcomed questions regarding “a small number of Maasai families [that had] been scheduled for an agreed future relocation.” And just last month, a clip from Kenyan TV shows that geothermal developers in the area have actually aided Maasai families by putting together a 150-home village.

James Koenig, an independent geothermal consultant whose work includes founding exploration company GeothermEx, Inc., further explains to GEA how the village came to be built: “By invoking a clause of a migratory peoples’ rights treaty of the UN, [the Maasai that were living around the Olkaria geothermal field] were given rights to receive water from KenGen from the pipeline built to carry water to the drilling rigs, power plants, and offices. This made it official: no more migrating; settle in the Olkaria IV area with free water and free grazing. The Kenya government actually approves of this, as this gives a chance to send the Maasai children to school year-around.

“KenGen took this a step further, and using its own funds has built a permanent village for the Maasai,” Koenig said. “I’ve been there and seen the well-built two-bedroom houses with modern kitchens, indoor plumbing, and running water. There are about 30 units, if I remember correctly, along with a modern school. Plans are for a clinic. Some Maasai are hired as guards. This enables the Maasai to live better than Nairobi slum dwellers.”

Calpine Corporation Announces Pricing of Senior Unsecured Notes Offering
Press Release (HOUSTON) July 9–On July 8, 2014, Calpine Corporation (NYSE: CPN) priced $1,250,000,000 in aggregate principal amount of its 5.375% Senior Unsecured Notes due 2023 and $1,550,000,000 in aggregate principal amount of its 5.750% Senior Unsecured Notes due 2025 pursuant to the Company’s shelf registration statement filed with the Securities and Exchange Commission. The offering is expected to close on July 22, 2014.

Calpine Corporation intends to use the net proceeds from this offering, together with cash on hand (if necessary), to (i) repurchase or redeem some or all of the Company’s 8% Senior Secured Notes due 2019, (ii) purchase pursuant to a tender offer and consent solicitation, and/or redeem, the outstanding principal amount of the Company’s 7.875% Senior Secured Notes due 2020 and 7.50% Senior Secured Notes due 2021 and (iii) pay premiums, fees and expenses relating to the purchase and redemption of existing secured notes described above. Any net proceeds from the offering of unsecured notes not used for the purposes described above will be used for general corporate purposes.

This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, any security and nor shall there be any offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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