Amidst the stringent regulations in place regarding liability in the face of end-of-life assets, and the substantial cost associated with decommissioning activities, the ‘Rigs-to-Reef’ policy the Bureau of Safety and Environmental Enforcement (BSEE) has adopted has presented itself as an attractive option in light of the sheer scope of end-of-life work ahead.
BSEE have previously stated that the policy can help operator’s cut their decommissioning costs by up at least a quarter, while remaining sustainably conscious in a process where concerns have been raised about environmental ramifications associated with decommissioning.
Looking deeper into the reefing process, as outlined in Offshore Network’s Gulf of Mexico Decommissioning and Abandonment 2024 conference (D&A GOM 2024), there are various types of reef constructions. Those consist of:
The process of rigs-to-reef operations include vehement survey and evaluation tests to ensure the rig structure is compatible with reef development (all of which is outlined on the BSEE website). The size of the platforms, structural integrity and locations of the structure of key factors to consider when determining the validity of the project. Thus far within the region, the Department of the Interior has approved approximately 600 rigs-to-reef proposals, with only a handful denied since the policy’s introduction in 1986.
Countless studies have been conducted by the US Government to examine the impact the reefs have both on the structures themselves and the surrounding marine ecosystem. One benefit is that of marine restoration and biodiversity enhancement – the deployment of artificial reefs in areas that have been affected by situations such as coral bleaching and destructive fishing practices allows new habitats to house a variety of marine life and play a significant contribution to ecosystem restoration.
Other benefits can include the enhancement of fisheries around the localised area; a rise in ecotourism, in particular destination diving; added coastal protection from erosion as the rigs act as submerged breakwaters; advancement in marine research; increased maintenance of nutrient cycling and water quality; contribution to environmentally responsible practices; and coral restoration and conservation.
On the other side of the coin, however, there has been some pushback within the industry regarding rigs-to-reef operations due to a number of posed risks associated with the process.
Some of the concerns include habitat displacement as some reefs can alter local marine habitats; the risk of pollution from improperly prepared materials; physical damage to the seafloor if the design or placement of the rig is not appropriate; damage to the surrounding ecosystem if the construction has not been actioned properly; the negative impacts associated with long-term maintenance of the rigs; the economic costs of reef management; and design flaws which may create conflict with the local environmental conditions.
While these concerns remain a continuous reminder about the fragility of rigs-to-reef operations, operator’s must decide whether shouldering the financial burden of fully decommissioning their assets outweighs the benefits presented by the reef policies. Even with these risks in min, the Gulf is currently one of the world’s leading nations for rigs-to-reefs projects, and the future continues to look bright for the environmentally-friendly alternative to decommissioning.
Playing a key role D&A GOM 2024, reefing discussions will once again shine in the spotlight for the 2025 edition of the world’s biggest decommissioning event. All of the details regarding the upcoming conference in April can be found here.
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.”
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.”
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.”
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.”
As COP28 shone the spotlight onto the ambitious targets set by the Heads of State and Governments Global Renewables and Energy Efficiency Pledge, wherein 123 countries recognised their commitment to maintaining global warming levels to within 2°C, work is only just beginning throughout the world’s energy network to increase the pace and deployment of renewable sources.
Currently, geothermal energy only accounts for 0.5% of global renewable installed capacity according to the International Renewable Energy Agency, signifying that there is significant room to increase deployment. According to the International Geothermal Association (IGA) there are currently 2,500 active deep geothermal wells globally, boasting an installed capacity of 173GW for heating and cooling purposes. While China is leading the localised heating system charge, the EU, USA and APAC regions are hot on its heels, offering an abundance of potential for geothermal extraction.
From an electrical standpoint, IGA states that there are currently 3,700 active geothermal wells globally boasting an installed capacity of 16.3GW. The US is the global front runner, generating more geothermally-charged electric power than any other region in the world, with that figure only set to increase. In line with the COP28 Renewables Pledge, IGA has promised to triple geothermal output by 2030, bringing overall electric power capacity up to 48GW, and total geothermal generation for heating and cooling systems up to 520GW. North America will prove to be a key player in meeting this target, becoming a driving force in boosting production via pilot projects and new technologies.
Offshore Network’s bespoke 2024 Geothermal Case Study Review shines the spotlight over North America, highlighting a selection of game-changing projects and the companies behind them, including Fervo Energy, GreenFire Energy, Baker Hughes and C Thermal.
The University of Texas at has received a US$4.9mn grant from the US Department of Energy (DOE) to conduct research on two potential climate change solutions around the Earth’s subsurface: the storage of carbon dioxide and the generation of energy.
A team of UTEP researchers will lead a multi-institutional team in accelerating climate change solutions. Other contributors will come from Florida State University, the University of Utah, Sandia National Laboratories and Alma Energy LLC. Together, they will target solutions for two DOE objectives, reducing carbon dioxide in the atmosphere and enhancing the effectiveness of geothermal energy capture.
Son-Young Yi, Ph.D., an Associate Professor in the Department of Mathematical Sciences, is the grant’s Principal Investigator and forms the UTEP contingency of the team alongside Co-PIs James Kubicki, Ph.D., a Professor in the Department of Earth, Environmental and Resource Sciences and Zhengtao Gan, Ph.D., an Assistant Professor in the Department of Aerospace and Mechanical Engineering.
The researchers will create computational models, using machine learning algorithms, that can help the clean energy industry reduce carbon dioxide in the Earth’s atmosphere and create a reliable means of accessing geothermal energy.
“There is a bevy of interactions taking place underground which influence the amount of energy that can be extracted from a particular location and the rate of production that a particular location will offer over time,” Gan said. “Our team will work with an industry partner to create computational models that can mitigate the exploration risks and help players in this industry identify the best areas for geothermal energy extraction.”
According to the team, the increased efficiency may result in greater quantities of energy extracted and sustained rates of production, which will hopefully translate to a more accessible and affordable way for Americans to power their homes.
“This is an exciting opportunity because crossing scales and putting together a picture of geochemical processes is a grand challenge in subsurface applications,” Kubicki said. “The potential to bring geothermal energy to the El Paso region and to help address carbon dioxide removal from the atmosphere is a dream come true.”
One method being researched for storing excess carbon dioxide is geologic carbon sequestration, which is the injection of the gas in underground geologic formations, such as saline aquifers – reservoirs of salt water that are located deep beneath layers of rock. A drawback to this approach is the possibility for the gas to seep, or leak, back to the surface and re-enter the atmosphere, Yi said.
“Our computational models will analyze the behavior of carbon dioxide across different scales, from the microscale to the macro scale, so that we can simulate and predict how long carbon dioxide will stay in the underground rock formations,” Yi said. “The work is ambitious as no model exists yet that has been able to link data about carbon dioxide’s behavior across scales, but if we’re successful, our models will help the clean energy industry understand the long-term evolution of the injected carbon dioxide and better identify optimal locations for carbon dioxide injection with respect to minimizing leakage.”
Subterra Renewables, one of the leading geothermal utility providers in North America, has announced its expansion into Western Canada and the US following its affiliate companies’ recent acquisition of Earth Drilling Co. Ltd.
One of the west coast’s leading drilling suppliers, the transaction includes the acquisition of Nevada-based Harris Exploration, a high-profile source of drilling and installation services in Nevada, California and Arizona. Earth Drilling and Harris are now part of Subterra’s group of companies that provide coast-to-coast access to geothermal drilling for geo-exchange system installations.
Matthew Tokarik, President of Subterra Renewables, said, “We are thrilled to officially welcome our valued collegaues from Earth Drilling and Harris Explorations to our growing network of experienced talent as we scale up our operations and ramp-up assets to meet the rapidly growing demand for community developments powered by renewable energy.
“Aligning ourselves with seasoned leaders that bring a combined 115 years of geo-drilling and exploration experience across North America provides is with immediate access to best-in-class services as we build out our coast-to-coast business. An opportune time as electrification and renewables take their place in a net-zero world.”
John Paul Wegleitner, CEO of Earth Drilling, commented, “We are excited and proud to be combining our visionary teams and resources as we diversify our geo-drilling operational opportunities to support a rapidly growing renewables industry under the Subterra group of companies.”
Subterra Renewables’ Chief Revenue Officer, Kareem Mirza, concluded, “This is a strategic move to ensure our renewable energy sector’s supply chain is adequately equipped with nation-wide access to expeditious and precision-tested talent and services. We are establishing ourselves as a vertically integrated geothermal utility provider whose reach spans across North America – best suited to meet the fast-growing renewable energy movement as district communities transition to electrification, powered by geothermal exchange systems.”
Federal economic development agency, Pacific Economic Development Canada (PacifiCan), announced last week that it would provide CAD$3.6mn in funding to Kitselas Geothermal harness geothermal energy in British Columbia for commercial use.
Kitselas Geothermal aims to decarbonise local industry to provide social, environmental and economic benefits to the traditional territory of Kitselas First Nation. In the first phase of its geothermal project, the ‘Fuel of Recognition’ at the M’Deek Reservoir, it is designed to replace 270,000 gigajoules per year of natural gas, reducing greenhouse gas emissions by more than 13,000 tonnes per year.
With the funding from PacifiCan’s Jobs and Growth Fund, Kitselas Geothermal will drill production wells to harness geothermal energy, with the project expecting to generate 170 jobs for Indigenous workers and furthering the economic benefits for the region. This funding will help Indigenous communities across British Columbia seize new opportunities that power a net-zero future.
The Honourable Harjit S. Sajjan, Minister of Emergency Preparedness and Minister responsible for PacifiCan, said, “This announcement on World Geothermal Energy Day reflects the Government of Canada’s commitment to building a net-zero future. By harnessing the power of geothermal energy in Northern B.C., Kitselas Geothermal brings us one step closer to that future. PacifiCan will continue working with Indigenous communities in B.C. to create lasting economic development that advances reconciliation.”
Alison Thompson, Director of Kitselas Geothermal, added, “Development of the ‘Fuel for Reconciliation’ geothermal energy project is a significant step towards Kitselas First Nation’s economic independence. The project also contributes to B.C.’s and Canada’s transition towards clean energy by demonstrating technology, training highly qualified professionals, and providing a proving ground for regulatory reform that will benefit both future project phases and other geothermal projects elsewhere in the country.”
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