Fervo Energy has announced the execution of two power purchase agreements (PPAs) with one of the US’ largest utility companies, Southern California Edison (SCE), for the provision of 320MW worth of geothermal energy to 350,000 homes across the state’s southern region.
SCE will purchase the power from Fervo Energy’s 400MW Cape Station project currently under construction in Utah, with the first 70MW phase of the project scheduled to be operational by 2026.
California Energy Commission Chair, David Hochschild, commented how the 15-year agreement marks “another milestone in California’s commitment to clean, zero-carbon electricity” and the enhanced geothermal systems will “complement our abundant wind and solar resources by providing critical baseload when those sources are limited.”
In 2021, the California Public Utilities Commission issued a mid-term reliability (MTR) mandate which requires utilities to produce 1,000MW of non-weather-dependent, non-battery, zero0emission energy to increase the reliability of the state’s electric grid. This movement catalysed demand for geothermal energy within California.
Dawn Owens, VP and Head of Development & Commercial Markets for Fervo Energy, said, “Geothermal stands as the dependable and adaptable solution for California’s journey towards a fully decarbonised grid. As electrification increases and climate change burdens already fragile infrastructure, geothermal will only play a bigger role in the US power markets.
“Fervo looks forward to continuing to meet these needs, providing firm, clean power to help balance California’s energy portfolio.”
Offshore Network has released an overview on the health, safety and environment (HSE) ecosphere in the Gulf of Mexico, with a primary focus on the challenges and opportunities faced by the region’s oil and gas sector.
With Environmental Resources Management indicating that 94% of health and safety function leaders are reporting increased expectations around health and safety in the years ahead, the HSE market is undergoing intense scrutiny. Operators in the region continue to grapple with some key challenges posed by the region and the nature of the industry including the Covid hangover, getting workers on board, ageing assets and of course evolving stringent regulations – a story kick-started by the events around the Deepwater Horizon disaster.
To combat these, stakeholders are engaging in a range of best practices and deploying new technologies in order to bring their workforce together and mitigate risk for their operations moving forward.
With pertinent issues in this environment set to be discussed at length at HSE GOM 2024 later this year (key topics include: safety culture, process safety, planning & preparation, technology & innovation, and environmental safeguarding) the report provides a refreshing perspective on the market ahead of doors opening in Houston.
Applicable by a significant master services contract from decommissioning specialist Promethean Energy, wells expert Elemental Energies will be aiding the decommissioning of nine orphaned wells in the Gulf of Mexico.
In February, Elemental Energies provided well management services for the plugging and abandonment of wells in the Matagorda Island area, off the Texas coast.
The five-year contract to decommission orphaned offshore wells in the region was awarded to Promethean by the Department of the Interior’s Bureau of Safety and Environmental Enforcement (BSEE).
Elemental Energies’ Julie Copland, Head of Decommissioning and Low Carbon, said, “We're thrilled with this award as it marks a significant expansion of our efforts in the Gulf. Our rich history in decommissioning, uniquely equips us to address the Gulf's orphaned wells, applying our expertise to mitigate environmental risks, navigate complex regulations, and reduce the associated OPEX of decommissioning work. This project and partnership is a testament to our commitment to meeting evolving industry standards and safeguarding our environment."
The contract is partially funded by the Bipartisan Infrastructure Law through a US$64mn commitment to address orphaned oil and gas wells on public lands.
Steve Louis, SVP Decommissioning for Promethean Energy, said, “We at Promethean are delighted to have Elemental Energies as a strategic partner, as we work with the federal government and others to deliver these projects of strategic importance to the nation’s environmental stewardship and energy security. Elemental’s well engineering expertise is an important component of our comprehensive wells management capability as an operator of mature assets and their decommissioning.”
Colorado-based company, Gradient Geothermal, has announced it has received funding from the state Energy Office’s Geothermal Energy Grant Program for the execution of a landmark feasibility study in Pierce, Colorado.
The project will aim to test the viability of establishing a thermal energy network for the town of Pierce through heat extracted from local inactive wells. If successful, the project has the potential to transform the energy stability for communities in need while bolstering Colorado’s long-term economic outlook.
During the study, Gradient will analyse if the use of hot water after electric power generation via inactive wells in the Pierce Field can be channelled into a direct use thermal network for Pierce residents.
Dr. Benjamin Burke, Chief Executive Officer at Gradient Geothermal, said, “Gradient Geothermal is excited to help bring geothermal energy and power generation to Pierce Field, Colorado. We have a prime opportunity to bring new life to a mature oil field.
“Pierce can be a world-class ‘geothermal garden’ where both heat and electricity from geothermal power benefit the entire town and provide jobs for a workforce familiar with oil and gas.”
Governor Jared Polis commented, “Geothermal energy, the heat beneath our feet, is an underutilised resource that can save people money on energy and improve air quality. Colorado is already a national leader in low-cost renewable energy, and now with these grants, we are supporting more geothermal energy across the state.”
Sea1 Offshore is the new name of the international offshore and subsea shipping company following a general meeting held earlier in May.
The formal decision was made in the wake of Kristian Siem’s withdrawal and will be accompanied by a new company logo. The company stated that crew and expertise will be transferred to the new company, even if nine of the company's vessels are taken over by Kristian Siem as part of the transaction.
Apart from this, the company has assured, it will be business as usual, although Bernt Omdal, CEO of Sea1 Offshore, has his eyes set on further growth.
“A more unified ownership structure will help to set a clearer course for the company,” Omdal explained. “We continue to operate all the vessels in our fleet, including the nine that are now owned by Siem. But we have changed the name and are replacing the logos at our offices in Brazil, Australia and Canada, and at the head office in Kristiansand.
“We are witnessing the start of a new upswing,” he continued. “We consider strengthening our fleet with several new construction vessels in order to take a larger part of the market in the offshore energy sector.”
Designed particularly for geothermal energy applications, Halliburton Company's latest product range includes the GeoESP lifting pumps, distinguished with features such as advanced submersible borehole and surface pump technology.
Developed by an in-house service called Summit ESP, these pumps cater to fluids transportation challenges. They are characterised by a unique high-flow inlet design that protects it against solids, minimises power consumption, and effectively tackles scale formation.
Keeping harsh environment in mind, these pumps have been designed with the durability to withstand temperatures up to 220°C (428°F). It is capable of resisting any range of scale, corrosion, and abrasion. With standardised pump dimensions, it is suitable for various geothermal well conditions.
In another digital innovation to geothermal well management, the Intelevate data science-driven platform generates real-time diagnostics and rich visualisations of 'smart' field data. This system improves well operations, extends system run life, minimises shutdowns, reduces energy consumption, and increases production.
"With increased global focus on low carbon energy sources, we are using our many decades of geothermal production expertise to help our customers maximise safety and improve efficiency. Our GeoESP lifting pumps build upon our current system to minimise power usage and help push the boundaries of what is possible with more complex well designs," said Greg Schneider, Vice President - Artificial Lift, Halliburton.
Organic Rankine Cycle (ORC) systems provider Turboden has collaborated with enhanced geothermal systems company Fervo Energy on advancing the Cape Station project.
With an anticipated total project capacity of approximately 400 MW, the project is Fervo's largest commercial endeavour in the geothermal industry. Situated in southwest Utah, the project will be a prime source for 24/7 carbon-free energy production.
Turboden will provide the engineering and procurement of power plant equipment for the initial 90 MW phase of the project. This includes the installation of three generators with six ORC turbines.
"We are excited to collaborate with Turboden on our Cape Station project," stated Tim Latimer, CEO and Co-Founder of Fervo Energy. "With this partnership, the ORC industry enters a new age of scale necessary to meet the skyrocketing demand for around-the-clock clean energy."
Paolo Bertuzzi, CEO and Managing Director of Turboden, said, "Fervo Energy's commitment to advancing geothermal energy aligns seamlessly with Turboden's mission to drive sustainable energy innovation. Together, we are forging a path towards a cleaner, greener future. The success of this project, alongside other initiatives in North America, prompted Turboden to consider establishing a US-based office. This strategic move enables us to leverage the support of Mitsubishi Heavy Industries America, further enhancing our operations and presence in the region.”
The Department of the Interior announced a final rule from the Bureau of Ocean Energy Management (BOEM) that makes the American oil and gas industry accountable to cover decommissioning costs of offshore platforms on the US Outer Continental Shelf (OCS).
This announcement comes as a relief for American taxpayers who had to otherwise bear the brunt of the huge decommissioning liabilities if the oil and gas companies failed to meet them.
Updating 20-year-old regulations, the new law demands financial assurance requirements for the offshore oil and gas industry operating on the OCS. The Government Accountability Office (GAO) found that previous practices followed by industry operators on meeting decommissioning deadlines were not as clearly defined, exposing American taxpayers to bear the cost in the end.
The final Risk Management and Financial Assurance for OCS Lease and Grant Obligations rule amendments address these concerns and reduce financial risks associated with OCS development by substantially increasing the level of financial assurances that operators must provide in advance.
“The American taxpayer should not be held responsible when oil and gas companies are unable to clean up after their own operations. The Interior Department is committed to ensuring that the federal oil and gas leasing program is implemented fairly, with accountability and transparency,” said Secretary Deb Haaland. “This final rule updates, simplifies and strengthens outdated requirements to ensure that taxpayers are protected and current operators are held responsible for their end-of-lease cleanup obligations on the Outer Continental Shelf.”
“For far too long, the federal government has failed to follow through on measures to ensure accountability for oil and gas companies operating offshore,” said Principal Deputy Assistant Secretary for Land and Minerals Management, Dr Steve Feldgus. “Coupled with our recent announcement from the Bureau of Land Management, the Department is ensuring that we have a modern oil and gas leasing programme that protects taxpayers’ interests.”
“The offshore oil and gas industry has evolved significantly over the last 20 years, and our financial assurance regulations need to keep pace,” said BOEM Director Elizabeth Klein. “Today’s action addresses the outdated and insufficient approach to supplemental bonding that does not always accurately capture the risks that industry may pose for the American taxpayer – like financial health of a company or the value of the assets that the lessee holds.”
According to the new rules, BOEM will use a credit rating from a Nationally Recognised Statistical Rating Organisation or a proxy credit rating equivalent to access a company's financial strength. The bureau will also consider the current value of the remaining proved oil and gas reserves on the lease compared to the estimated cost of meeting decommissioning obligations. If the lease has significant reserves still available, then in the event of a bankruptcy, the lease will likely be acquired by another operator who will assume the plugging and abandonment liabilities.
Companies without an investment-grade credit rating or sufficient proved reserves will need to provide supplemental financial assurance to comply with the new rule.
BOEM believes that the industry will be required to provide US$6.9bn in new financial assurances to protect American taxpayers from assuming industry decommissioning costs. To provide industry with flexibility to meet the new financial assurance requirements, the bureau will allow current lessees and grant holders to request phased-in payments in a span of three years to meet the new supplemental financial assurance demands.
Infrastructure service provider Core & Main has entered into a definitive agreement to acquire the entire asset range of Kentucky-based, high-density polyethylene (HDPE) pipe distributor Geothermal Supply Company.
"From the beginning, GSC set out to fill a void in the industry by delivering the highest quality HDPE products and services to help customers achieve success. Joining Core & Main will offer our team continued opportunities to deliver on these goals," said Matt Lile, Owner and Operations Manager of GSC. “I am immensely proud of our progress and growth over the years and eagerly anticipate all we can accomplish as part of Core & Main."
GSC's wide base of fusible offerings help in the installation and maintenance of geothermal systems.
"Adding GSC to the Core & Main family will create exciting new opportunities for us in an important and expanding area for HDPE. The GSC team's wealth of knowledge and expertise in the industry fit in well with our existing fusible product offering, and we are confident this will be a positive partnership for both new and existing customers," said Steve LeClair, Chairman and CEO of Core & Main.
"GSC has set an exceptional example with their unwavering commitment to providing top-notch service and building strong customer relationships," said Jack Schaller, President of Core & Main. "We look forward to welcoming them to Core & Main and incorporating their expertise to further strengthen our fusible offerings."
Expro, a provider of energy services, has highlighted the company’s achievements in 2023 along with the progress it has towards its near- and long-term environmental, social and governance (ESG) objectives.
In its 2023 ESG report available here, the company highlighted projects delivered throughout the year, including a custom solution to support the testing of new geothermal technologies in Oklahoma and supporting a pilot project in Japan with carbon capture utilisation.
“In an ever-evolving energy landscape, Expro remains steadfast in our commitment to driving positive change,” remarked Mike Jardon, Chief Executive Officer of Expro. “I am proud to share our achievements from 2023 in this comprehensive report which serves as a testament to our progress in environmental, social, and governance strategies, underscoring the integral role partnerships play in cultivating sustainability for Expro and our clients.
“As we step into 2024, we remain dedicated to fostering a low-carbon future and intend to play a key role in enabling a low-carbon transition.”
Standouts from the 2023 ESG report identified by Expro included:
• Developing lower carbon solutions: Expro has turned commitments into actions to help address customers’ most complex challenges in sustainability. This includes new developments in game-changing projects spanning carbon capture utilisation and storage (CCUS), natural hydrogen and geothermal in Australia, Colombia, Germany and Japan.
• Reducing Scope 1 and Scope 2 greenhouse gas emissions: Expro reduced emissions by 11% from a 2021 baseline, driven by increased use of renewable energy while increasing its ability to track Scope 3 emissions, setting the stage to further integrate ESG reduction initiatives throughout the supply chain.
• Advancing the Expro portfolio with sustainable energy solutions: Expro took large strides forward in its work within the areas of geothermal and CCUS, adapting the company’s solutions across three emerging markets.
• Prioritising safety: The organisation renewed its commitment to safety in the workplace along with the second annual Expro ENGAGE initiative designed to focus on highlighting employees’ safety successes, while teaching and reinforcing best practices, and reducing the company’s Lost Time Incident Frequency (LTIF) to just 0.06.
• Fostering a collaborative and inclusive culture: Believing in the importance of diversity in the organisation, Expro is reaping the benefits of a collaborative and inclusive workplace where ideas are shared through the rollout of Expro Culture of Care and the 2023 Elevate employee pulse survey that ultimately informed company action plans for 2024.
Hannah Rumbles, Expro Director of Sustainability, Marketing and Communications, added, “I am excited to advance our commitment to innovating with purpose, grounded in our values of People, Performance, Partnerships and Planet. Over the past year, we’ve focused on the maturation of our approach to sustainability that we expect will accelerate our journey to a low-carbon future. With this strong momentum, we remain committed to empowering our customers while strengthening our own sustainability practices and performance.”
The Colorado Energy Office (CEO) has opened its first competitive application for the state’s Geothermal Electricity Tax Credit Offering (GETCO), a programme to encourage elevated levels of geothermal production and investment.
Following the Governor’s ‘Heat Beneath Our Feet Initiative’ to explore more deployment opportunities for geothermal technology within the state, the new tax programme allows for eligible utilities, private businesses, local governments and public-private partnerships to apply for two different types of incentives. The two incentives include an investment tax credit (ITC) for exploring and developing geothermal resources, and a production tax credit (PTC) for producing geothermal electricity.
The ITC can cover up to 30-50% of eligible costs for selected projects not exceeding US$5mn. A total is US$35mn is available in ITCs through to 2032, while the PTCs provide a US$0.003 credit for every kwh of geothermal electricity produced, up to US$1mn per entity per year through to 2032. The first application cycle is open until 30 June, 2024.
Colorado Energy Office’s Executive Director, Will Toor, stated, “This incentive encourages geothermal electricity development across Colorado, advancing innovative technologies that will create jobs in just transition communities and help achieve a 100% clean energy economy here and around the world.”
Colorado utilities are currently on track to reduce emissions from the power sector by more than 80% by 2030 though a mix of clean energy sources. A recent study commissioned by CEO found that the lower cost pathway to achieve 100% clean electricity in Colorado by 2040 will be to rely on geothermal energy, alongside wind, solar, storage and clean hydrogen.
“While wind and solar energy can meet the majority of our electricity needs, geothermal energy is essential for delivering reliable and affordable clean electricity, regardless of the weather,” Toor continued.
Colorado Governor Jared Polis said, “Geothermal energy means lower costs on Coloradans’ energy bills and cleaner air. By breaking down barriers to this clean renewable energy resource, Colorado can move closer to our goal of 100% renewable energy while saving people money on energy, improving reliability, and protecting our air quality.”
In a five-year joint framework agreement with Talos Energy Inc, Helix Energy Solutions Group, Inc gets the first right of refusal regarding specific annual work scopes for Talos’s decommissioning requirements in the US Gulf of Mexico.
Scheduled to start in the second quarter of the year, the agreement outlines a base pricing structure and processes for determining and scheduling specific projects Talos requires.
The projected scopes of work include Talos’s normal course abandonment of offshore wells, pipelines and platforms, primarily on the shelf. Helix’s Louisiana-based shallow water abandonment group, Helix Alliance, plans to utilise derrick barges for structure removals, liftboats for plug and abandonment activities, and dive support vessels (DSVs) for pipeline abandonments, plus multiple offshore supply vessels (OSVs), among other assets in the course of the campaign.
Owen Kratz, Helix’s President and Chief Executive Officer, said, “We are excited to have been awarded this significant framework agreement for well and structure removal and decommissioning. Helix and Talos have worked together on field production, well intervention and decommissioning in the deepwater arena for many years, and this framework expands the relationship onto the shelf, further demonstrating Helix’s position as the preeminent company for full-field decommissioning in the Gulf of Mexico.”
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