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Accelerating geothermal development with a play-based portfolio approach
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- Jan Diederik van Wees, Hans Veldkamp, Logan Brunner, Mark Vrijlandt, Sander de Jong, Nora Heijnen, Corné van Langen, Joris Peijster
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- Journal:
- Netherlands Journal of Geosciences / Volume 99 / 2020
- Published online by Cambridge University Press:
- 02 June 2020, e5
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Over the past decade in the Netherlands, most operators have only developed a single doublet. The learning effect from these single events is suboptimal, and operators have only been capable of developing doublets in areas with relatively low exploration risk. This ‘stand-alone’ approach can be significantly improved by a collective approach to derisk regions with similar subsurface characteristics. Such a play-based portfolio approach, which is common in the oil and gas industry, can help to accelerate the development of the geothermal industry through unlocking resource potential in areas marked by high upfront geological risk, effectively helping reduce costs for the development. The basis of the methodology is to deploy new information to the play portfolio by trading off with the risk of the first wells, resulting in a strong geological risk reduction.
The added value of the portfolio approach is demonstrated for the Netherlands in this paper through a comparison with a ‘stand-alone’ development. In the stand-alone approach, each new project will be equally risky, and therefore relatively unprofitable. In the case of a portfolio approach, all experience about the play is used optimally for derisking. In case of success, subsequent projects will have a higher chance of being successful, due to the experience gained in previous projects. Even if a project fails, this may help in increasing the probability of success for subsequent projects. For plays that are initially considered too risky for the market to start developing, the value of information (VoI) of a play-based portfolio approach will help by derisking the play to such an extent that it becomes attractive for the market to develop, even at high initial risk. It can be demonstrated for several geothermal plays in the Netherlands that by adopting the portfolio approach, the probability of a play being developed becomes higher, the number of successfully developed projects increases and the average profitability of the project will also be higher. Five more advantages are: (1) continuous improvement by integrated project development, (2) cost reduction through synergy, efficiency and standardisation, (3) optimisation of the surface heat demand and infrastructure, (4) the possibility of structural research and development (R&D) and innovation, and (5) financing advantages. The advantages reinforce each other.
A preliminary estimate of the geothermal potential of the Netherlands adopting the portfolio approach is between 90 and 275 Petajoules (PJ). For about 350 doublets being developed, producing about 70 PJ, the value of the advantage of the play-based portfolio approach is €2 billion for the three main plays: Rotliegend, Triassic and Jurassic/Cretaceous. The learning effects of synergy, efficiency and standardisation are expected to be significant.
Direct heat resource assessment and subsurface information systems for geothermal aquifers; the Dutch perspective
- L. Kramers, J.-D. van Wees, M.P.D. Pluymaekers, A. Kronimus, T. Boxem
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- Journal:
- Netherlands Journal of Geosciences / Volume 91 / Issue 4 / December 2012
- Published online by Cambridge University Press:
- 24 March 2014, pp. 637-649
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A resource assessment methodology has been developed to designate prospective high permeable clastic aquifers and to assess the amount of potential geothermal energy in the Netherlands. It builds from the wealth of deep subsurface data from oil and gas exploration and production which is publicly and digitally available. In the resource assessment various performance indicator maps have been produced for direct heat applications (greenhouse and spatial heating). These maps are based on detailed mapping of depth, thickness, porosity, permeability, temperature and transmissivity (methodology presented in other papers in this NJG issue). In the resource assessment analysis 14 lithostratigraphic units (clastic aquifers) have been considered, ranging in age from the Permian to the Cenozoic. Performance maps have been made which include a) the expected doublet power (MWth) to be retrieved; b) the number of houses or hectares that can be heated from one doublet; and c) a potential indicator map, which provides insight in subsurface suitability for specific applications from a techno-economic perspective. To obtain a nationwide overview of the resource potential in terms of recoverable geothermal energy, a progressive filtering approach was used from total heat content of the reservoirs (Heat In Place – HIP) via the heat that can potentially be recovered (Potential Recovery Heat – PRH) to energy maps taking into account a techno-economic performance evaluation (Recoverable Heat – RH). Results show that the HIP is approximately 820,000 PJ which is significantly more than previous estimates of around 90,000 PJ. This considerable increase in geothermal energy potential is the result of accurate geological mapping of key reservoir properties and the development of state-of-the-art techno-economic performance assessment tools that performs Monte Carlo simulation. Moreover, for the previous estimates boundary conditions were set with the aim to compare the geothermal potential between different EU countries (Rijkers & Van Doorn, 1997). Taking into account techno-economic aspects, the RH is in the order of 85,000 PJ. This is equivalent to ~70% of the ultimate recoverable gas of the Slochteren Gas field. In total over 400 maps have been created or used as input for the resource assessment. Together, they provide comprehensive information for geothermal energy development from various stakeholder perspectives. The maps can be interactively assessed in the web-based portal ThermoGIS (www.thermogis.nl). This application complements existing subsurface information systems available in the Netherlands and supports the geothermal community in assessing the feasibility of a geothermal system on a regional scale.