1. The United States of America Country Update Geothermal Resources Council Annual Meeting Reno, Nevada 25-28 September 2005 John W. Lund, R. Gordon Bloomquist, Tonya L. Boyd, Joel Renner

2. INTRODUCTION Geothermal resources capable of supporting electrical generation and/or direct use projects are found primarily in the Western United States. Geothermal heat pumps extend the utilization to all 50 states.

3. USA GEOTHERMAL ELECTRICAL POTENTIAL Identified potential estimate by USGS in 1978: 22,990 MW CA and NV recent evaluation: 6,200 MW –Nearly triple the existing capacity Achieving the electrical potential depends on a number of state & federal factors: –Renewable Portfolio Standards (RPS) –Production Tax Credit (PTC)

4. USDOE R&D SUPPORT United States Department of Energy – ongoing efforts in support of R&D –Enhanced geothermal systems –Downhole diagnostics –Enhanced evaporative cooling –Mixed binary working fluids –Corrosion resistant coatings –Co-production of minerals

5. GEOPOWERING THE WEST USDOE continues to provide through the GPW program: –Technical assistance for: Direct-use projects Small-scale electrical projects Geothermal heat pump projects –For developers and users in 16 western states Geo-Heat Center and Washington State University providing technical assistance

6. INSTALLED GEOTHEMAL ELECTRICAL CAPACITY US continues to lead the world in installed electrical capacity: 2534 MWe And leads in installed geothermal heat pumps: 7,200 MWt (600,000 + units) However, remains a small contributor: –In 2004 – only 0.27% of total US capacity On the state level – geothermal electrical is a major contributor in CA and NV –In CA – if provides about 6% of state’s energy

7. ELECTRICAL ADDITIONS From 2000 t0 2004 –Approximately 70 MWe capacity added in US –Reduction at The Geysers to about 1,421 MWe of which only 1,000 MWe currently operating. –The Lake County, CA waste water pipeline has allowed over 77 MWe to be added at The Geysers –The Santa Rosa pipeline, on-line in 2004 – will add additional capacity at The Geysers

8. PRODUCTION OF ELECTRICITY: ALL SOURCES Operable electric production capacity and power generation in the United States from all sources for 1999-2003 stands at 2534 MWe providing 17,840 GWh/y.

9. POWER PLANTS IN THE USA California –The Geysers: 23 units @ 1421 MWe –Imperial Valley: 97 units @ 500 MWe –Honey Lake Valley: 5 units @ 4 MWe –Coso: 9 units @ 274 MWe –Casa Diablo: 4 units @ 40 MWe –TOTAL: 403 units @ 2,239 MWe

12. POWER PLANTS IN THE USA Nevada: 50 units @ 239 MWe Utah: 1 unit @ 26 MWe Hawaii: 20 units @ 30 MWe TOTAL USA: 474 units @ 2,534 MWe

15. REINJECTION AT THE GEYSERS Geothermal power production has stayed nearly constant from 2000-2004 with the steep decline at The Geysers slowed by waste water injection and plant expansion elsewhere.

16. OUTLOOK AND CONCLUSIONS – ELECTRIC POWER GENERATION Planned new capacity over the next five years would increase by 632 MWe and total capacity could reach 3160 MWe, growth rate well above that of the past 5 years (18%). Most growth in the states of California, Nevada, Utah, and Idaho

17. How the industry fares will to a large extent depend upon the success of renewable portfolio standards (RPS) and the impact of the production tax credit (PTC) that provides for a 1.8¢ credit for every kWh produced.

18. When the present excess capacity in the western states begins to disappear, and as the price of fossil fuel—particularly natural gas—continues to rise, geothermal energy can be expected to resume its once strong growth.

19. DIRECT-USE IN THE USA Installed capacity and annual use: –Direct-utilization: 617 MWt & 9,024 TJ/yr –Heat pumps: 7,200 MWt & 22,214 TJ/yr Growth since 2000: –Direct-utilization: 2.6%/yr –Heat pumps: 11.0%/yr –Combined total: 8.0%/yr

20. DIRECT-USE ADDITIONS Direct-use (other than heat pumps) has had a small growth <3%/yr Geothermal heat pumps have had a large growth, around 11%/yr – mainly in the east and midwest states A small district heating system has come on-line: I’SOT at Canby in northern CA Competition from low natural gas has been a deterrent to new projects

21. Geothermal heat pumps: 92% of capacity 71% of annual use

22. SPACE HEATING Mainly concentrated in Klamath Falls, OR –600 wells supplying homes, apartment, schools and businesses since 1930s –Use downhole heat exchanger – only heat removed from the resource – no water Reno, Nevada – Moana area 146 MWt and 1,335 TJ/yr – C.F. 0.29

23. DOWNHOLE HEAT EXCHANGER IN KLAMATH FALLS

24. DISTRICT HEATING 20 systems in the US – one added Using 59 o C to 100 o C @ 5 to 250 L/s Installed capacity: 0.1 to 31 MWt Annual energy use: 0.7 to 94 TJ/yr Total: 84 MWt and 788 TJ/yr Development small due to –Competition with cheap natural gas –Low heat load density in the West

25. GEOTHERMAL DISTRICT HEATING IN THE USA

26. FISH FARMING 49 sites in 11 states Largest operations: –Imperial Valley of southern California 3.7 million kg of Tilapia, catfish, and bass/yr –Snake River Plain of southern Idaho 1.0 million kg of Tilapia and catfish/yr Alligators are raised at two locations –2 m in length and 200 kg TOTAL: 138 MWt and 3,012 TJ/yr

27. Idaho Colorado

28. GREENHOUSE HEATING 43 operation in 9 states Main products –Potted plants and cut flowers for local market –Tree seedlings and some vegetables –Vegetables not competitive with Mexico –Roses facing competition from S. America TOTAL: 97 MWt and 766 TJ/yr

29. IFA NURSERY – 1.6 HECTARS – KLAMATH FALLS

30. AGRICULTURAL DRYING Two large operations in Nevada –Onion and garlic dehydration –136 tonnes of raw product/day –Producing 23 tonnes of dried product One plant has suspended operation due to competition with garlic from China The other has added a second process line TOTAL: 36 MWt and 500 TJ/yr

32. INDUSTRIAL PROCESSING Gold and Silver extraction in Nevada –17% increase in recovery –Extended operating season Zinc extraction in Imperial Valley, CA –Used electricity from power plant –Zinc from 8 power plant water @ 600 ppm –30,000 tonnes/yr - $30 million/yr All now closed due to economics

34. GEOTHERMAL HEAT PUMPS 600,000+ installed units 60,000 units/yr @ 12 KW equivalent size In all 50 states Mostly in East and Midwest states 7,200 MWt and 22,214 TJ/yr @ COP = 3.5 Most designed for cooling mode 1,200 full-load hours/yr 44% vertical closed-loop, 36% horizontal closed-loop and 20% open loop systems

36. USA DIRECT-USE GROWTH 1975-2005 2.6%/yr direct-use, 11%/yr heat pumps 8%/yr total since 2000 CONCLUSION OF DIRECT-USE IN USA

37. US INVESTMENT IN GEOTHERMAL 2000-2004 –$200 million in R&D –$200 million in field development –$300 million in utilization $100 million direct-use; $200 million electrical –80% private and 20% public 62 wells drilled (most for electrical) –44 km total 3,000 professional person-years of effort

38. ENERGY SAVINGS Electricity –30.3 million barrels – 4.5 million tonnes of oil/yr Direct-use (including heat pumps) –17.8 million barrels – 4.2 million tonnes of oil/yr Total carbon savings –7.7 million tonnes of carbon/yr –21.7 million tonnes of CO 2 /yr TOTAL: 58.1 million barrels - 3 days 8.7 million tonnes of fuel oil/yr

39. THANK YOU