Deep Geothermal for District Heating Production - Experiences from Denmark

Deep Geothermal for District Heating Production - Experiences from Denmark GeoEnergi 2013 Søren Berg Lorenzen Danish Geothermal District Heating

The Danish framework Technical: Geology District heating in the heat supply District heating production Legislative: The Underground Act The Heat Supply Act Political: National energy targets Financial: Investments and risks Picture: Visit Denmark

Potential reservoirs in Denmark Source: The National Geological Survey of Denmark and Greenland (GEUS)

District heating on the rise 1.000 units 3.000 2.500 2.000 1.500 1.000 500 0 1981 1990 2000 2011 Indv. oil Indv. natural gas District heating Other Source: The Danish Energy Agency

25.000 400 DH systems only 40 above 250 TJ/year 20.000 20.557 20.474 15.000 10.000 5.000 0 9.830 9.517 8.728 7.202 5.843 4.049 3.415 3.057 2.412 2.290 1.855 1.538 1.518 1.489 1.316 1.216 1.203 1.172 1.086 1.078 1.066 1.060 1.039 922 918 868 782 780 766 757 755 724 695 663 660 645 642 606 574 548 527 524 511 502 488 469 467 443 414 397 391 386 346 343 325 318 316 316 314 303 303 300 298 295 284 277 276 272 266 260 CTR I/S KE A/S, Varme Fjernvarme Århus Vestegnens Kraftvarmeselskab I/S Odense Kommunale Fjernvarmeforsyning Aalborg Kom. Forsyningsvirksomhederne TVIS Esbjerg Kommune, Forsyningen TRE-FOR Varme A/S Frederiksberg Fjernvarme A/S Energi Gruppen Jylland Varme A/S Energi Randers Varme A/S Roskilde Kommune Vestforbrænding I/S Silkeborg Kommune Vestforsyning Varme A/S Høje Taastrup Fjernvarme a.m.b.a. Viborg Kraftvarme A/S Hillerød Kommune, El, vand og varme Gentofte Kommune Kraftvarme Sønderborg Fjernvarme a.m.b.a. Fredericia Fjernvarme a.m.b.a. Brøndby Fjernvarme a.m.b.a. Kalundborg Kommunale Varmeforsyning Hjørring Varmeforsyning Viborg Fjernvarme Frederikshavn Forsyning - Varme Nykøbing Falster Kommune Aabenraa Fjernvarme Nyborg Forsyning og Service A/S Næstved Varmeværk a.m.b.a. Tårnby Rådhus, Teknisk Forvaltning Horsens Varmeværk a.m.b.a. SK-Varme A/S Helsingør Kommunale Fjernvarmeforsyning Skanderborg Fjernvarme A.m.b.a. Grenaa Varmeværk A.m.b.A. Svendborg Fjernvarmecentral a.m.b.a. Varde Kommune Rødovre kommunale Fjernvarmeforsyning Thisted Varmeforsyning a.m.b.a. I/S Skive Fjernvarme Haderslev Fjernvarme Struer Forsyning Fjernvarme A/S Brønderslev Forsyning Middelfart Fjernvarme a.m.b.a. Gladsaxe Fjernvarmeforsyning Frederiksværk De Kommunale Værker GEV Varme A/S Ringkøbing Fjernvarmeværk a.m.b.a. Nakskov Fjernvarme Østjydsk Halmvarme Ishøj Varmeværk Fjernvarmecentalen Avedøre Holme Farum Fjernvarme a.m.b.a. Aars Fjernvarmeforsyning Vejen Varmeværk a.m.b.a. Bjerringbro Varmeværk a.m.b.a. Lystrup Fjernvarme a.m.b.a. Maribo Varmeværk a.m.b.a. Lemvig Varmeværk a.m.b.a. Skagen Varmeværk a.m.b.a. Skjern Fjernvarmecentral Tønder Fjernvarmeselskab a.m.b.a. Sæby Varmeværk a.m.b.a. Ribe Fjernvarme a.m.b.a. Hinnerup Fjernvarme a.m.b.a. Hundige Fjernvarmeværk Holte Fjernvarme a.m.b.a. Nørresundby Fjernvarmeforsyning a.m.b.a. Assens Fjernvarme a.m.b.a. Ringe Fjernvarmeselskab Source: The Danish District Heating Association

District heating production from black to green 100% 80% 60% 40% 20% 0% 1980 1985 1990 1995 2000 2005 2011 Oil Natural gas Coal Renewable energy incl. waste Source: The Danish Energy Agency

Renewable energy in the district heating supply Gross production 2011 (TJ) 784 18.161 8.661 733 258 212 331 Solar Geothermal Straw Wood Bio oil Waste (biodegradable) 7.452 Biogas Heat pumps Source: The Danish Energy Agency

The Underground Act main principles The underground and its resources belongs to the Danish State Any underground activity requires a license All data and knowledge acquired must be handed over to the national geological survey Pictures: DONG Energy, Sønderborg Fjernvarme

Licenses (August 2013) Source: The Danish Energy Agency

Geological data are essential Source: The National Geological Survey of Denmark and Greenland (GEUS)

The Heat Supply Act main principles Heat supply is heavily regulated Municipal heat planning is central Strong consumer protection little room for profits All projects must demonstrate a positive impact on the economy of society Pictures: Logstor, Rambøll Denmark

Danish energy targets By 2050 the Danish energy supply must be 100 % renewable (power and heat production already in 2035) This will be accomplished by increasing energy efficiency and substituting fossil fuels with wind, biomass, solar, geothermal, etc.

Energy Agreement 2012-2020 District heating plays a central role in the shift from fossil fuels to renewable energies MDKK 35,0 (MEUR 4,7) is set aside for the advancement of new renewable energy technologies (including geothermal energy, large heat pumps, etc.) in the DH sector in 2012-2015

National analyses on geothermal energy WebGIS database Different methods of risk alleviation Screening of 27 DH areas Manual on geothermal energy projects Geothermal energy in the DH systems

Financing geothermal energy in Denmark Project description Municipal guarantee The local municipality The district heating company (Competitive) financing

Geothermal energy plants in Denmark 1984 2005 2013

Geothermal district heating production in Denmark

Geothermal DH plant in Thisted

Geothermal DH plant in Thisted Varme fra halmkedel 150 C 130 C 10 MW 72 C 25 kw 42 C Fjernvarme retur 17 MW 80 kw 12 C 43 C 200 m3/h 7 MW N 2 N 2 H 2 O + LiBr H2O 290 kw

Geothermal demonstration plant in Copenhagen

Geothermal demonstration plant in Copenhagen

Geothermal demonstration plant in Copenhagen Amagerværket 13 MW & Amager 85 C driv- Forbrænding varme Varmeveksler Pumpe, fjernvarmevand 0,1 MW el til 71 C pumper 50 C 1 my posefilter 14 MW varme fra geotermivand 0,4 MW 1 my patronfilter Injektionspumpe 235 m3/h 27 MW varme til fjernvarmenet 73 C 17 C 14 MW bidrag fra geotermivand 0,7 MW Til havet 13 MW genvunden drivvarme. Dykpumpe Elforbrug på 1,2 MW. 19% salinitet 2/11-2004. DONG, ama.

Geothermal DH plant in Sønderborg

Geothermal DH plant in Sønderborg

Geothermal DH plant in Sønderborg

Experiences so far what are the risks? The risks are mainly related to geology and water chemistry: Local geology can vary a lot from regional geology (Sønderborg) Knowledge of the location of faults is crucial Permeability varies a lot and is generally too low at depths > 2,500 m (Aars, Farsø, lower part of Thisted) Temperature is generally easier to predict, but can vary due to local geology (Aars, Farsø, Amager, Sønderborg) Prices in the oil & gas industry (rigs, services and consumables) fluctuates a lot Perforations are more flexible during construction, but screens and gravel packs give better sand control and is less vulnerable to soft acidizing Water chemistry is important the surface plant must have design pressure above bubble point, and proper cooling of the geothermal fluid is important to avoid precipitation of CaSO 4 (which can though be removed by soft acidizing)

Investments and risk Risik level / Acc. investments High Moderate Low Interpreted seismic survey and geological prognosis 1 st well tested 2 nd well tested Accumulated investments Very low Time Geophysical (seismic) survey Drilling wells Surface plant Operations

Requirements for risk alleviation Permanent setup Transparent conditions Flexible with regards to risk level Must cover all investments (phases) Acceptable premiums Based on knowledge of Danish geology and production framework

Please visit www.geotermi.dk for more information og news on geothermal energy in Denmark (so far, only in Danish sorry )