Mt. Princeton Geothermal LLC Regulatory Hurdles, Action Solutions and Geothermal Investment in Colorado Geothermal Working Group Denver, Colorado 28 April.

Mt. Princeton Geothermal LLC

Regulatory Hurdles, Action Solutions and Geothermal Investment in Colorado

Geothermal Working GroupDenver, Colorado 28 April 2011

Frederick B. Henderson III, Ph.D.Chief Scientist, Mt. Princeton Geothermal LLC


Definition: Emerging Geothermal State –

A state with good geothermal energy potential and little or no production

Focus on hydrothermal potential; EGS 10+ years away

State (Colorado) needs outside investment

METHODS PRESENTLY USED

Steam Rising

Injected Working Fluid




Colorado DevelopmentsHydrothermal: Mt. Princeton, Waunita &_Poncha

HS; TG / Geophysics done or about done; Awaiting Stage 2 Reservoir tests

Other research studies (DOE/GEO); Flint

EGS: Raton Sedimentary Basin, Pioneer CoalbedMethane basin tests; looking for GT partner.

Several other DOE studies



● General Plan

► 2007-2010: Completed Stage I geological, and geophysical studies to target deep reservoir (~$1+ Million)

► Spring – Summer 2011: Stage III permitting and deep reservoir drilling (~$3-5 Million) Mandatory for Stage III

► Fall 2012 – 2010: Stage III production and re-injection well permitting and drilling; surface plant permitting and development. (~$ 40 Million) Could be complicated by BLM lease sale issues and legal delays


Primary Barrier to Colorado Hydrothermal Geothermal Development?

Attracting outside (?) Risk Investment for

Stage II Deep Reservoir Confirmation Test Drilling

First stated to Geo in 2007

Mt. Princeton Geothermal LLCPrimary Barrier to Colorado Hydrothermal

Geothermal Development?

WHY?

1.General Economic Malaise 2008-2001

2.Weak Geothermal Industry: only 4 companies with funds to invest. Merging and investing only in US and Non US “elephant” country; not US Greenfields or “emerging states”.


Geothermal Companies (GRC)

Invite to/ Report on GTWG Agua Caliente; Alta Rock; Caldera;

CalEnergy; Calpine; Chevron (Indonesia);Enel; Gradient; Iceland America; Magma; Mid America Energy; Nevada Geothermal; Ormat; Ram Power; Raser Tech; Sierra Geothermal


Primary Barrier to Colorado Hydrothermal Geothermal Development?

WHY?

3.Investment community funding only “proven” projects, not prospects.

4.Colorado is expanding environmental and regulatory barriers antithetical to outside investment in geothermal energy

Mt. Princeton Geothermal LLC• Suggested GTWG Action Solutions

• What would it take for the PUC allow Utility investment for drilling (Legislation?)

• Work with geothermal industry, investors and utilities to create financially meaningful a PPPAs (Preliminary PPA) for intermediate reservoir funding (Southern California Edison Model?)


• Industry Emerging State Investment– Exploration Consortia– Industry Drilling Pool (with Government?)

●State wide effort to coordinate county development of geothermal 1041 stipulations with economic balance

A TYPICAL POWER TUBE INSTALLATION

Harmonic Condenser

Turbine

Harmonic Boiler

Temp F3040507090120200 working temp.210

To CustomerService Distribution Building

Generators

Down to Thermal Source When Needed

Hot RockArea

650 max. @ 7500ft.


• State wide initiative to encourage counties to adopt Mono County’s successful 20 year County created HAC (Hydrologic Advisory Councils) composed of Federal, State and Local regulatory and technical experts to act as a public oversight body. Addresses agency overlap and public input.

Mt. Princeton Geothermal LLC• Suggested Solutions

• Need a Critical Mass of Proponents: Geothermal Industry, Investors, National, State and Local Governments with a Common Voice to the Energy Consuming and Environmentally Sensitive Public and Legislature through GEA; GRC; Universities; GEO; GTWG; etc. to answer why invest in Colorado and “What’s in for me” for Concerned Citizens”


• POTENTIAL CHAFFEE COUNTY GEOTHERMAL ENERGY BENEFITS

• Mt. Princeton HS 10+ MW• Poncha Springs 7-10 MW • Cottonwood HS 5-10 MW • Hecla Junction ?• . Total 22-30+ MW

Colorado Preliminary Top 10 Hot Springs

COLORADO POTENTIAL

1/2 of 57 hot springs

at 10 MW each ~

300 MW or more


A KEY GTWG ISSUE:

How can WE make Colorado more

attractive to out side investor $$$

Mt. Princeton Geothermal LLC Regulatory Hurdles, Action Solutions and Geothermal Investment in Colorado Geothermal Working Group Denver, Colorado 28 April.

Documents

geothermal energy slide

geothermal investment

investment slide

mw slide

emerging geothermal

weak geothermal industry

hot springs slide

economic balance slide