Assessing Geothermal Feasibility and Potential
A South American national energy company commissioned a study to evaluate the geothermal potential of a regional basin and a specific field. Sproule ERCE conducted a detailed feasibility study, identifying high-temperature resources (150°C at 4,500 m depth), focusing on conventional geothermal systems. The study mapped four promising zones and recommended a stepwise pilot approach to address data gaps, including exploration drilling and testing protocols. Economic analysis flagged risks and highlighted how additional geological data could improve outcomes and support sustainable geothermal development.
Project Highlights
- Identified high-temperature geothermal resource (~150°C) at 4.5 km depth
- Maintained conventional geothermal doublet configuration
- Recommended phased pilot development with exploration drilling and testing
- Highlighted economic risks and the need for additional geological data to reduce uncertainty
Challenges
Limited Subsurface Data: Key reservoir and structural setting data are lacking, making resource assessment uncertain. Predicting extractable energy volumes from deep geothermal reservoirs is highly variable without clear and genuine data.
Economic Uncertainty: Modeling exercises suggested poor financial returns due to variable reservoir productivity and high capital costs. These economic risks challenge investment decisions and require careful balancing of potential output.
Operational Complexity: Drilling deep, large-bore wells is technically challenging and requires precise well design and testing protocols.
Economic Uncertainty: Modeling exercises suggested poor financial returns due to variable reservoir productivity and high capital costs. These economic risks challenge investment decisions and require careful balancing of potential output.
Operational Complexity: Drilling deep, large-bore wells is technically challenging and requires precise well design and testing protocols.
Solutions
Conducted a Detailed Feasibility Study: Sproule ERCE evaluated geothermal potential, focusing on conventional doublet systems, identifying four target zones, and gathering existing geological data. Our findings include recommended well designs, pilot development plans, and economic models, providing a clear action plan for the client.
Recommended Phased Pilot Approach: To manage uncertainties, an initial exploration well to collect precise site-specific data was recommended. Based on well results, decisions on further drilling and facility development can be made, ensuring risks are progressively reduced.
Collaborated Closely with the Client: Sproule ERCE worked hand-in-hand with the client to align technical assessments with economic evaluations, helping understand key risks and mitigation strategies.
Recommended Phased Pilot Approach: To manage uncertainties, an initial exploration well to collect precise site-specific data was recommended. Based on well results, decisions on further drilling and facility development can be made, ensuring risks are progressively reduced.
Collaborated Closely with the Client: Sproule ERCE worked hand-in-hand with the client to align technical assessments with economic evaluations, helping understand key risks and mitigation strategies.
Values
Provided an Actionable Roadmap: Our study gave a clear path to explore and develop geothermal energy, focusing on data-driven decisions to unlock the region’s geothermal potential.
Reduced Investment Risks: By highlighting data gaps and suggesting phased pilot testing, we helped the client avoid high upfront costs without sufficient information. Smart allocation of time and resources ensures that technical risk is actively managed down during project development.
Enhanced Decision Confidence: Integrating technical and economic insights realistically assesses project viability, improving strategic planning and potential operational success.
Reduced Investment Risks: By highlighting data gaps and suggesting phased pilot testing, we helped the client avoid high upfront costs without sufficient information. Smart allocation of time and resources ensures that technical risk is actively managed down during project development.
Enhanced Decision Confidence: Integrating technical and economic insights realistically assesses project viability, improving strategic planning and potential operational success.