1. Europe, from a pioneering role to the leading edge of R&D with a global perspective for the future of geothermal energy P. Ledru, L. Rybach, T. Megel Engine Mid-term Conference 10-12 January 2007 GFZ Potsdam, Germany Opening Session

2. Mid-term conference, 10-12 January 2007, Potsdam > 2 The strategy of the European commission and the R&D programs > Directive 2001/77/EC : doubling the contribution of renewable energy from 6 to 12% of total energy consumption by 2010. > A total budget of 46,6M€ over 4 years and a support of 17,6M€ from EU (FP 6) dedicated to geothermal energy > The White Paper (Community Strategy and Action Plan, 1997) : doubling (500 to 1000 MW) of electricity production capacity, increase from 750 to 25000 MW for heat production capacity of geothermal origin by 2010

3. Soultz-sous-forêt EGS Larderello Groß Schönebeck Basel EGS Electricity production, co generation Enhanced Geothermal Systems test sites Guadalupe Açores District heating Paris Basin Izmir Bansko, Kocani, Gevgelia Cozia-Calciulata Altheim Groß Schönebeck Soultz Larderello, 1904-2006 Altheim Ferrara Neustdat-Glewe Neustadt-Glewe Podhale, Mszczonów, Pyrzyce, Uniejów Slomniki Alvsby Geothermal Heat Pumps Pyrzyce Heat Pumps Overview of the geothermal activity in Europe Icelandic Deep Drilling project Iceland

4. Mid-term conference, 10-12 January 2007, Potsdam > 4 Geothermal power and direct use production Geothermal power capacity 2004, 1179 MWE Geothermal direct use capacity 2005 13626 MWt Others: 37,2 Italy: 791 Iceland: 202 Compilation, L. Rybach, GRC 2006 Iceland: 1844 Others: 3964 Sweden: 3840 Turkey: 1495 Switzerland: 582 Italy: 607 Hungary: 694 Norway: 600 France: 19 Russia: 79 Germany: 504 Austria: 352 Denmark: 330

5. Mid-term conference, 10-12 January 2007, Potsdam > 5 FP6 projects: a significant R&D investment CAMELIA: Multigeneration Energy Systems with Locally Integrated Applications GroundHit: Ground Coupled Heat Pumps of High Technology Low Bin: Binary systems EGS (STREP): Soultz HITI (STREP): High-Temperature Equipment ENGINE Co- ordination Action I-GET: Integrated Geophysical Exploration Technology

6. Mid-term conference, 10-12 January 2007, Potsdam > 6 The strategy of the European commission and the R&D programs > Directive 2001/77/EC : doubling the contribution of renewable energy from 6 to 12% of total energy consumption by 2010. > A total budget of 46,6M€ over 4 years and a support of 17,6M€ from EU (6th FP) dedicated to geothermal energy > The White Paper (Community Strategy and Action Plan, 1997) : doubling (500 to 1000 MW) of electricity production capacity, increase from 750 to 25000 MW for heat production capacity of geothermal origin by 2010 > To be compared with in 2004: electricity production capacity: 1 1179 MWE, and in 2005: heat production capacity 13626 MWt

7. Mid-term conference, 10-12 January 2007, Potsdam > 7 Weakness/strength of EU R&D > A lack of political support, youth and growth defaults of geothermal energy (corrosion, H 2 S gas emission, sustainability…) > The development of geothermal heat pumps market and cost- efficient geothermal devices that have overpassed these difficulties > The geothermal energy participates to the global debate about greenhouse effect and energy supply > A clear definition of what is R&D and industrial matter > A stimulating pressure to fit with the needs of industry and face the scientific challenges > Restricted market that hinder investment of major companies > EU is still in a pioneer position for experiments and R&D (linked to the high investment of successive FP) > Because of the wide range of sources and applications, dispersion of manpower and R&D funds > Because of the wide range of sources and applications, complementary skills and transfer of knowledge and know-how exist

8. Mid-term conference, 10-12 January 2007, Potsdam > 8 State of the art: ENGINE, the right project at the right time ? > A sound scientific and technical knowledge acquired in Europe during the 20th century. Conventional geothermal energy still benefits from ongoing improvements in conversion, heat distribution… and should become increasingly cost-effective (rise in energy prices, new environmental constraints, greenhouse gas reduction...) > Is there a need for long-term collaborative research on international projects to develop Enhanced Geothermal Systems? > What could be the role of ENGINE?

9. Mid-term conference, 10-12 January 2007, Potsdam > 9 The need of an international strategy > There is a renewed interest for geothermal energy from deep sources > the Soultz experiment is considered as the international reference by the Australian investors and American scientists for whom EGS is one of the few renewable energy that can provide continuous base load-power. > The co-ordination of these short and long term projects requires a well organised scientific community at an international level, a restored political support and good links with industry and stakeholders. As well as for scientist from Chile…

10. Hot Rock Projects in South Australia (from B. Goldstein) 11 GEL / GELA Holders 92 GELs / GELAs over 43,440 km² The 5-year GEL exploration and demonstration work programs correspond to $500+ million, and this excludes up-scaling and deployment projects Can benefit from Commonwealth renewable energy initiatives: 1.Renewable Energy Certificates 2.REDI Grants 3.Circa $500 million in Federal grants to demonstrate low emissions technologies Just 1 GEL (500 km²) has hot rock emission- free energy potential to yield electricity equivalent to several Snowy Mountain Hydro Schemes (1 SM approx = 550 MWe) Blanche 1 Habanero 1,2 Paralana 1B Yerila 1 Heat Flow 1,3,4 Petratherm Eden Scopenergy Pacific Hydro Petratherm Sedimentary basin (thermal blanket) Geodynamics South Australian heat flow anomaly 200 km Geodynamics Geothermal Regional power grid Eden Proactive Green Rock Osiris Geothermal Origin Proactive Torrens Green Rock Petratherm Osiris Scopenergy Green Rock Eden (Tasman affiliate) Proactive Energy Origin Energy Resources Geodynamics Petratherm =MNGI Pacific Hydro Osiris Energy Geothermal Resources Torrens Energy

11. Mid-term conference, 10-12 January 2007, Potsdam > 11 Future geothermal prospects in UK (J. Busby, 2006, BGS) Could we exploit the geothermal potential of North Sea oil fields as their oil runs out? Some have reservoir temperatures over 100º C and so electricity generation might be possible. Should we reconsider HDR in the light of new technology? Cornwall? or possibly reassess the eastern Highlands of Scotland? Iceland could become a net exporter of green electricity. Should we contribute to understanding their resources as we could benefit?

12. Mid-term conference, 10-12 January 2007, Potsdam > 12 Possible contribution of international collaborative research to transform Weakness into Strength > A lack of political support > Making our voice louder to be heard for raising funding and showing that EGS can provide continuous base load-power > Showing the contribution of geothermal energy to the energy supply politics and reduction of greenhouse effect > Showing the use of cost-efficient geothermal energy (medium enthalpy, GHP, cooling and heating..) > Develop a real strategy of communication > Restricted market that hinder investment of major companies > Promoting the use of the different sources of geothermal energy > Including the development of geothermal fields from third countries within an international perspective > Developing the potential of geothermal recovery from oil and gas field > Ensuring the success of on going experiments > Because of the wide range of sources and applications, dispersion of manpower and R&D funds > Integrate complementary skills and ensure transfer of knowledge and know-how within a supported international cooperation action

13. Mid-term conference, 10-12 January 2007, Potsdam > 13 ENGINE, the right project at the right time > A sound scientific and technical knowledge acquired in Europe during the 20th century. > A need for long-term collaborative research on international projects to develop Enhanced Geothermal Systems: reference to the Soultz experiment for promoting new projects in Australia, Kamtchaka, Chile…, extension of existing geothermal fields, geothermal recovery from existing oil and gas operations… > ENGINE, along with other initiatives (European Commission, IEA-GIA, MIT expert panel, IGA, EGEC…) can contribute to the construction of an international strategy, consolidate the available information systems, propose spin-off projects that will receive the support of stakeholders, decision makers and private investors.