Geothermal Utilization in Iceland

Transcription

1 Geothermal Utilization in Iceland 85 Years of Experience ICEF 2014 Tokyo Bjarni Bjarnason CEO

2 The Geothermal Resource 30 C/km The total amount of heat stored in the crust of the Earth is of the order of 5 billion EJ. Mankind uses 400 EJ annually for all energy needs. 0.1% of the stored heat would satisfy the global energy consumption for 10,000 years. 2 Source: ISOR 2008

3 Plate Boundaries Subduction zone Ridge

4 Iceland is located on the Mid-Atlantic Ridge Greenland L L L H

5 Source: National Energy Authority Iceland: Availability of the Geothermal Resource 5

6 Century of developing geothermal utilization In the early 19 th century the main use was bathing and laundry. In 1930 the first building in Reykjavik, a primary school, was connected to district heating. Water was collected and pumped 3 km distance. The neighboring homes followed, as well as the hospital and an indoor swimming pool. 6

7 Source: National Energy Authority PJ Primary Energy Use in Iceland Geothermal was a critical game changer 250 Coal Oil Geothermal 50 Hydro

8 Source: National Energy Authority Energy Mix in Iceland Geothermal is Iceland s single largest source of energy today 100% 90% Coal 80% Oil 70% 60% 50% Geothermal 40% 30% 20% % renewables 10% Hydro 0% 8

9 The Geothermal Blessing 90% of houses heated with geothermal. Geothermal supplies Iceland with 30% of its electricity. Very low cost. Energy independence. Small environmental footprint. Public acceptance. 9

10 Laugarnes geothermal field Area: 0.28 km 2 Temp: C Capacity : 330 l/s 10 Production Wells

11 Average C House heating - Iceland and Hokkaido Reykjavík High Reykjavík Low Sapporo High Sapporo Low Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec 11

12 Direct use of geothermal energy Comparison of Japan and Iceland Other 10% Space heating 4% Bathing and swimming 4% Iceland 2010: 1,826 MW th 0.3 million people Other 21% Bathing and swimming 86% Space heating 76% Japan 2010: 2,100 MW th 127 million people Source: Lund et al.; 2010

13 The Heating Utilities in Iceland Common Features Municipally or state owned. Operated under legalized monopoly with mutual obligations of utilities and customers. Very low cost. Regulated and stable profits. Utilization is based on research by public parties and open access to data. 13

14 Risk Reducing Incentives Direct government backing of investment loans. Icelandic Energy Fund since 1960: Subordinated loans to smaller municipalities and individuals for geothermal drilling. 400 loans granted Grants to individuals and companies to switch from subsidized electricity to geothermal heating. Guarantees issued for exploration drilling cost. No success no payment.

15 Policy and Incentives Geothermal exploration by government agencies and companies. Open access to data compiled by government agencies. State-funding of basic geological and geophysical research. Revisions of government energy policies and green incentives. 15

16 St. Petersburg Moscow Prague Warsaw Bucharest Seoul Berlin Copenhagen New York City Stockholm Helsingi Hamburg Paris Göteborg Reykjavík Krakow District heating is common in the world GWh 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Gunnlaugsson;

17 Major Geothermal Companies ~ MWth MWe Source: Bertani; 2010 and OR

18 Reykjavik Energy Iceland s Largest Geothermal Co. Serves two thirds of the population with: Hot water. Electricity. Cold water. Sewage services. Generation of electricity and supply of hot water. Two geothermal power plants. Several low temperature fields. 18

19 Reykjavik Energy s Geothermal Power Plants Capacity Hellisheiði 303 MW e and 133 MW th Nesjavellir 120 MW e and 300 MW th Total: 423 MW e and 433 MW th Mitsubishi 4 x 30 MW turbines at Nesjavellir 6 x 45 MW turbines at Hellisheiði Toshiba 1 x 33 MW low pressure turbine at Hellisheiði 19

20 Availability of turbines at Hellisheið power plant ~ ~ 20

21 Energy Prices in the Nordic Countries The monthly cost of heating a 100 m 2 (45 tatami) apartment is ISK 6,600 or JPY 5,900. This is similar to 1-2 newspaper subscriptions in Iceland or a bottle of bad whisky. 21

22 Economic Benefits to Icelanders In 2010 Iceland s total economic benefit from geothermal was calculated to $ 600 million. It equals 5% of the gross domestic product (GDP) of the country. 22 Source: Kristofersson; 2012

23 Reykjavík in 1933

24 Reykjavík today 24

25 Challenges Cost and exploration risk. Resource balance. Induced seismicity. H 2 S emissions. Disposal of geothermal fluids. General environmental house-keeping. 25

26 Þingvellir - UNESCO World Heritage List Nesjavellir

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37 Thank you