Centre for Energy Technology

Ricoh Clean Energy Scholarship

Techno-economic assessment of novel engineering systems for stranded geothermal energy resources.

Ashok A. Kaniyal Prof. Graham Gus J. Nathan Prof. Jonathan J. Pincus

Delivering innovative technologies for a clean energy future

School of Mechanical Engineering

Life Impact | The University of Adelaide

Centre for Energy Technology

Australias Energy Network

Electricity transmission network

Geothermal resources in Cooper Basin

Geothermal resources in Cooper Basin

Slide 1

Oil and Natural Gas Pipeline Life Impact | The University of Adelaide network (Geoscience Australia, 2009)

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The Geothermal-Data Centre Concept

Geothermal data fibre link Capital: $60 m + $15 m (Op ex).

National Broadband Network (NBN)

(NBN Co., 2010)

Geothermal-data fibre link Proposed NBN Co Fibre optic links Fibre optic node
Geothermal-data fibre link ~ $60m

DBCDE, 2010.

Slide 2

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Presentation outline Gap in literature; Techno-economic analysis framework;

Analysis of Geothermal-data centre concept early results;

Future work; Conclusions.
Slide 3

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Gap in literature
Economic assessment of geothermal direct heat and EGS CHP applications. Address limitations of other novel geothermal engineering systems,
Dickinson et al. (2010) and Atrens et al. (2009).

Geothermal-data centre micro-grid follows complementary network infrastructure investment.

c.f. Siddiqui and Maribu (2009), Fleten (2007).

Application of dynamic capital investment decision methods,

Not considered in this context.

Slide 4

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Aims
Technical feasibility of direct heat and CHP enhanced geothermal system applications, Economic viability of fibre optic network and geothermal plant under data centre client servicing scenarios: Net present value - Deterministic static analysis, NPV approach + dynamic demand and geothermal plant cost uncertainty.

Social welfare analysis a case for public involvement in project.

Application of techno-economic framework to other eng systems.
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Framework for techno-economic analysis

1. Develop a concept for an engineering system.

Increasing detail 2. Steady state thermodynamic analysis of plant concept. 3. Static NPV analysis of investment. 4. Dynamic analysis of investment in geothermal and network resource faculties. 5. Social benefit analysis of investment in plant and network resource.

Slide 6

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Standardised data centre unit

Modular data centre of total capacity 350 kWe (Barroso, 2007):

IT load = 270 kWe Cooling load = 200 kWr
Cooling load ~200 kWr
Data Centre Co.
hv Geothermal-data fibre link (1000-1500 km)

NBN market

IT electrical load ~270 kWe

Slide 7

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EGS CHP Organic Rankine cycle steady state analysis

Injection well Production well Temperature [K]

Geo-fluid: water
6

Geothermal water: Tin = 508 K, TH = 490 K, T = 5 K, = 50 kg/s.

Radial turbine

490 320 5 5s

1 2

Pre-heater

Evaporator
1

3 2s

Geo-fluid
5

Generator Wnet = 1.2 MWe

Feed pump
4 3

Entropy (s) [kJ/kg-K]

Absorption refrigeration cycle (not shown) 2 NH3-H20

Ext. heat exchanger Absorption cycle: generator

68% (Tc = 562 K, Tin = 375 K, TH = 320 K)

DiPippo (2005) Heberle and Bruggemann (2010) Liu , Chien and Wang (2004)

Refrigeration load

Slide 8

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Energy consumption pattern

Natural gas electricity generation 2.55 MWe

Organic Rankine Cycle 1.2 MWe

Geothermal Local CHP Direct heat cooling Absorption chiller cooling 14x Modular data centres

Total IT electrical Load 3.75 MWe

hv

NBN market

Geothermal-data fibre link (1500 km)

3.6 MWth (input) > 2.8MWr (average required output) Absorption chiller plant: COP = 1.0

Broad X Absorption Chiller Design Manual (2008)

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EGS wells and ORC plant costing

Cost component First injection + production well pair ORC plant

+ natural gas storage tank + construction + contingency.

A$ M $30.5 M $3.82 M

Additional production wells

Ulrich (1984) Vasudevan and Agrawal (2000)

$10.2 M

Slide 10

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ORC plant economies of scale

$18

Cost of plant and installation (A$ M)

Grass roots capital (Full Plant) ($AUD) Plant size incrementation cost comparison (4 plant units)

$16 $14 $12 $10 $8

4 x 1 plant unit (PU) $15.87 m 3 PU + 1 PU = $12.51m 2 PU x 2 = $11.69m 4 PU $10.93 m

$6
$4 $2 $0 1 2 3 4 5

Geothermal ORC plant units (corresp. no. of production wells)

Slide 11

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Local CHP Net Present Value scenarios

NPV scenario iteration Mk 1 Description

- Increasing rate of data centre commitment,

- Early investment = no construction lag.

Mk 2

- Increasing rate of data centre commitment, - Economies of scale investment in plant.

Rt = Annual revenue received per data centre, Ct = Capital and ongoing operating expenditure. i = Cost of capital = 6%

Slide 12

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Local CHP Net Present Value scenarios

0 $1 2 3 4 5 15% 10% 5% 0% -5% -10%

NPV and Total expenditure (A$ M)

-$20 -$40 -$60 -$80 -$100

-$120
-$140 -$160

-15%
-20%

Number of capacity increments (production wells + ORC plant) 1 Total expenditure Mk 2

Total expenditure Mk 2 3

-25%

Slide 13

NPV/Total expenditure Mk 1 2

Life Impact | The University NPV/Total expenditure Mk 2 3 of Adelaide

NPV/Total expenditure

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Fibre optic network investment

Cumulative NPV of investment in Geothermal-Data Fibre link
$100

Cumulative net present value (A$ M)

28% subscription
$80 $60

40% subscription 50% subscription 60% subscription Barroso (2007)

$40
$20 $0 -$20 -$40 -$60

Years
5 10 15 20 25 30 35 40 45

-$80 Slide 14

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Dynamic investment decision

Real options approach. An optimal path for capacity investments given uncertain:
Data centre demand for remote co-location and competition b/w sites,
Method: Aguerrevere (2003);

Influence of learning on cost of establishing geothermal wells and plant,

Method: Bolton and Faure-Grimaud (2009).

Social welfare analysis under uncertain demand public subsidy?

Method: Danau (2010).

Slide 15

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Future work

Another application: Wind CHP a techno-economic analysis? H2-fuel cells CHP for NEM feed-in and adsorption desalination. Common use plant c.f. fibre optic network investment.

Slide 16

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Conclusions

Enhanced geothermal system CHP application technically feasible. Geothermal-data centre concept is economically viable. Techno-economic framework applicable to other unique engineering systems and geographies.

Slide 17

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