Local Geothermal Efforts Get $Millions of Stimulus Funds

Feds give $30 million for Newberry geothermal work
From KTVZ.COM news sources – Oct 29, 2009 03:00 PM PDT

New form of geothermal energy system could spring to life at Newberry Volcanic Monument

Continuing efforts to advance alternative energy resources and break our dependence on foreign oil and fossil fuels, U.S. Senators Ron Wyden (D-Ore.) and Jeff Merkley (D-Ore.) announced nearly $40 million in Recovery Act funding for the exploration and development of geothermal energy technologies in Oregon.

“This funding will literally help to bring Oregon’s geothermal energy potential to the surface,” Wyden said. “It will create and sustain jobs improving alternative energy technology to better tap into Oregon’s unique set of renewable energy resources.”

“The Recovery Act continues to spur growth in the emerging clean energy industry,” Merkley said.  “These projects will create new jobs and solidify Oregon’s position as a leader in renewable energy production.”

Distributed by the U.S. Department of Energy, the American Recovery and Reinvestment Act funding will support and create seven Oregon-based geothermal projects.

The funding dramatically increases geothermal energy development both in Oregon and nationwide and is a large step toward comprehensive utilization of alternative energy resources throughout the state.

$20 Million Spent on Empty Geothermal Wells

Empty Wells Drilled as Part of Newberry Geothermal Project Cost $20 million
Daniel Pearson – Cascade Business News – October 6, 2009

After spending about $20 million to drill two exploratory holes looking for geothermal sources of energy west of Paulina Lake outside of the Newberry National Volcanic Monument, officials with Davenport Power say their efforts were a bust and that the company is back at the drawing board before beginning a new round of exploration.

Davenport Power President Doug Perry said the project resulted in the company locating plenty of heat but it didn’t find a way to mine the heat and get it to a power plant to operate a turbine.

“We have a number of acres up there where we’ve drilled exploratory wells,” Perry said “It’s expensive but there is a lot of energy up there. Our plans are now two-fold. The next steps in the exploration process we are preparing for are the completion of geophysical surveys as well as drilling temperature gradient holes. We’ve applied with the Bureau of Land Management to expand the area of operations.”

Steam Proves Elusive at Newberry Geothermal Project

While sucess at Newberry geothermal project would be a major positive step forward for distributed generation of renewable energy for Central Oregon the financial costs already incurred and the potential enviromental risks are concerns that should be constantly evaluated.

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The drill at Newberry
By Kate Ramsayer – The Bulletin – September 28, 2009

Last year, Davenport Power drilled two exploratory wells 10,000 feet below the flanks of Newberry Volcano searching for hot rocks and water but found nothing but heat.

Now the company, which hopes to tap into geothermal power in the Deschutes National Forest south of Bend, is making plans to use a suite of other less-intensive methods to further map the underground rocks and temperatures in the area to find other potential drill sites.

When crews bored two wells just to the west of Paulina Lake, outside of the Newberry National Volcanic Monument last year, instruments measured plenty of heat but not enough water or steam to turn turbines and generate power, said Doug Perry, president of Davenport Power.

The company hopes eventually to drill production wells that could fuel a power plant capable of providing electricity to about 100,000 homes.

Newberry Geothermal Project Update

Search for Geothermal Energy Slow
KOHD News – August 31, 2009

Update on the quest for geothermal power at Newberry volcano. Information provided by Davenport Power LLC, operator of the project.

Review of 2009 Exploration

After drilling two deep exploratory wells (10,060 and 11,600 feet respectively), the Newberry Geothermal Project, operated by Davenport Power LLC, found very high levels of heat in both wells, but little commercially viable resource – neither hot water nor steam. During the past months, Project geologists and scientists evaluated data from these wells along with previously gathered information. This time-consuming process is normal in development of geothermal resource projects. The three pads and two wells the Newberry Project constructed last year remain in place and will continue to be maintained and utilized in exploration activities.

Surface Geophysical Surveys

The Newberry Project team has begun implementation of the next exploration phase on Newberry Geothermal Project’s BLM-leases (Bureau of Land Management). Planned surface geophysical work will collect data to assist in understanding the nature and geology of Newberry Volcano. This geophysical work consists of a series of gravity surveys and magnetotelluric surveys.

This surface work will be non-invasive and low-impact in nature. It will occur on geothermal lease holdings on the western flanks of Newberry Volcano. The planned geophysical data gathering is similar to that which was approved by the BLM and Forest Service (FS) in 2006. This work is anticipated to start in 2010.

Oregon is a National Green Jobs Leader

Green and on top
By Andrew Moore - The Bulletin – June 14, 2009

Solar. Wind. Water. Geothermal, biomass and even garbage. With all these opportunities, it’s no wonder Oregon leads the nation in clean energy. And based on the number of alternative energy firms sprouting up in Central Oregon, it seems only natural that growth in green jobs has far outpaced the national average.

Rod Page, who lives just north of Bend, is concerned about the nation’s energy consumption. Accordingly, he drives a biodiesel-fueled car and later this week will have solar panels installed on his roof to help power his home.

He’s wanted to install them for more than two years, but found it cost-prohibitive. Now, thanks to state and federal tax credits, the cost has come down enough to make economic sense for Page.

But this isn’t really a story about solar power. It’s about the demand created by folks like Page who are helping to fuel rising employment in the clean-energy sector.

In other words, green jobs.

According to a report released Wednesday by The Pew Charitable Trusts, a Philadelphia-based nonprofit, jobs in the country’s clean-energy sector grew at a rate of 9.1 percent between 1998 and 2007, compared with total job growth of only 3.7 percent in the same period.

In Oregon, the number is greater. According to the report, jobs in Oregon’s clean-energy sector grew at a rate of 50.7 percent between 1998 and 2007, compared with total job growth of 7.5 percent in the same period. That means Oregon, with upwards of 1,600 clean-energy companies, has more green jobs than any other state.

Oregon Geothermal Energy = Baseload Energy

Cascades Make Oregon a Geothermal ‘Hotbed’
By Ethan Lindsey – OPB News – June 1, 2009

Geothermal power soon will get a share of $400 million in federal stimulus money.

That’s a tectonic shift for a field that almost had its funding zeroed out under the Bush Administration.

Any money for Oregon geothermal projects could have a real impact.

Klamath Falls’ water is naturally heated by the earth’s core, even though the air is freezing months on end.

That free, renewable energy in the hot water is why many see geothermal power as a key piece of a green energy future.

Klamath Falls Applies for Geothermal Upgrade

K. Falls asks for $1.5 million geothermal upgrade
Herald and News – December 11, 2008
 
The City of Klamath Falls is applying for a state loan to finance a $1.5-million project to upgrade its geothermal transmission lines.

The city’s geothermal heating system was first installed in 1981, with upgrades that included replacement of all above-ground pipes.

But underground lines, originally built using steel pipes, have corroded and are leaking, and need replacement.

Once the system is turned off next spring, the city can begin work, which is expected to take three to four months.

The loan will be repaid from system revenue that already covers its operating costs, maintenance and and some capital improvements.

Second Drilling Site Failure for Newberry Geothermal

Each hole drilled searching for viable geothermal energy that is deemed a failure simply adds $5 to $7 million to the total costs necessary to recover if and when the project is up and running.  Yes, if successful, this project could generate a large amount of mostly clean and renewable energy but the same millions of dollars could have built many commercial distributed generation solar installations that would have been up and producing electricity already while creating many local jobs with virtually no negative enviromental impact.

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Geothermal company goes back to drawing board
AP – December 10, 2008

Newberry Geothermal is abandoning its latest drilling site in its quest for a source of geothermal power. The project has removed its 180-foot-tall drilling rig from Newberry Crater in Central Oregon.

It’s the second time that Newberry Geothermal has struck out. As with its first well, crews found the heat necessary, but not enough water. In order to work, a site needs to offer both enough heat and enough water to for steam to turn the turbines and generate electricity at a geothermal power plant.

The delay has sent the company back to the drawing board. It plans to conduct some additional studies to figure out how to proceed.

Founder of Bend Geothermal Energy Company Files Lawsuit

Geothermal founder files $50 million suit
Register-Guard – December 6, 2008
 
EUGENE, Ore. (AP) — The founder of a Bend geothermal energy company has filed a $50 million lawsuit against investors he claims fraudulently took over the company.

Stephen Munson filed the suit against investment funds created by Merrill Lynch Commodity Partners and Denham Capital Management, as well as board members they appointed.

Munson founded Vulcan Power Co. in 1991, and served as its president, CEO and chairman until new directors, appointed by the new investors, ousted him in October and fired him on Nov. 20.

Vulcan Power officials say the complaint is without merit while investors declined to comment.

Munson portrays himself in the lawsuit as a visionary entrepreneur who built up privately held Vulcan Power so that it had one of the largest geothermal portfolios in the country.

What Does Geothermal Exploration Mean for C.O.

What might geothermal exploration mean for the region?
Industry representatives take questions in Bend
By Kate Ramsayer - The Bulletin – November 1, 2008

Just to the west of the Newberry National Volcanic Monument, a company is drilling more than 10,000 feet through the pumice and other surface rocks, looking for hot water or steam it can harness to produce geothermal power.

And Friday morning, some environmental advocates got a chance to ask people from the geothermal industry and land management agencies what that means for Central Oregon’s environment during a meeting of the Oregon Department of Energy’s geothermal working group.

The group held the meeting in Bend because organizers felt it would be beneficial to spark more interactions between the industry and the environmental community, said Carel DeWinkel with the Oregon Department of Energy.

Mike Riley, executive director of the Central Oregon Environmental Center, wanted to know where Davenport Power, which is developing the Newberry Geothermal Project, would get water from if it turned out it would need to inject water into wells to generate steam.