Onacha Rwanda Geothermal Resources Development

8/8/2019 Onacha Rwanda Geothermal Resources Development

1/35

GeothermalExplorationand

Development

in

Rwanda

Strategyforaccelerateddevelopment

StephenOnacha,Uwera Rutagarama,Nepo Namugize

01/09/ 2010 EAPIC Nairobi,


2/35

Outline

Introduction

RwandaEnergy

Sector

Objectives

2010

to

2015

EvidenceofgeothermalresourcesinRwanda

Current

Status

and

preliminary

findings

Issuesaffecting geothermaldevelopment

Immediate

goals

Whatneedstobedoneandbywho?

RGRES

options,

timing,

costs

etc

TheInstituteofEarthScienceandEngineering


3/35

Rwanda Energy Sector Objectives

IncreaseaccesstoElectricity inRwandato35%of

thepopulation

by

2020

Reducecostsofenergyandmakeenergy

services costreflective

DiversifyEnergy

Sources

and

ensure

security

of supply

CurrentGenerationCapacity&Mix

86%

Biomass

11Hydrocarbons

3%electricity(85MWe) 37.8MWefrom diesel,

41.7MWe

from

hydro

and

10.5

MWe

imported


4/35

Activity Inputs/Costs

(USD)

Privatesector

contribution

Indicators Timeframe Responsibility

DevelopHydro 200M 10% 60MWe 10MWeby2010 MININFRA,

RECO,RURA,

PrivateSector

Geothermal 75M 20MWe 5wellsby2013,

powerplantby

2015

and

additionalsurface

exploration

MININFRA,

RECO,RURA,

Private

Sector

MethaneGas Privatesector 100MWe 25by2012and75

by2015

MININFRA,

RECO,RURA,

PrivateSector

Additional

Diesel

24M 10MWe 10by2011 MININFRA,

RECO

OffGrid

renewable

sources

50M 50% 5

MWe 5

by

2015 MININFRA,

privatesector

Planned electricity generation mix for Rwanda for

the period 20102015


5/35

ImmediateGoals

Securepredictableandadequatefundingforgeothermal

explorationand

development

Capacitybuilding&Equipmenttoensuresustainableutilization

andmanagementofthegeothermalresources

Findhighproductiongeothermalwells Reducerisksandcosts

tomakegeothermaltrulyleastcost

Formulationof

alegal

and

regulatory

frame

work

and

policies

Attractprivatesectorparticipation Expressionofinterest

prepared

Generate20MWe in5years

Earlywellgenerationencouraged

Confirmgeothermal

potential

of

more

300MWe


6/35

What is Geothermal energy

Heat Source

Hot Water


7/35

Fracture


8/35

Fractures & Faults &

Alteration


9/35

Hot Springs at 70C

Fault Trace

FaultControlledSurfaceManifestations

Hot Springs with Travertine


10/35

How does geothermal compare to mining?


11/35

Nyamuragira eruption Jan 2010

Nyiragongo eruption in

2002

Evidence of the Heat Source- It is regional
http://www.airlinesanddestinations.com/wp-content/uploads/2010/07/100724-nyiragongo-01.jpghttp://www.airlinesanddestinations.com/wp-content/uploads/2010/07/100724-nyiragongo-01.jpghttp://en.wikipedia.org/wiki/File:Democratic_Republic_of_the_Congo_location_map.svghttp://www.airlinesanddestinations.com/wp-content/uploads/2010/07/100724-nyiragongo-01.jpg


12/35

Possible drilling area.

KARISIMBI VOLCANO

Evidence of Heat Source- Rwanda


13/35

Current Status- Rwanda Geothermal Area


14/35

Conceptual Model for Geothermal System

Fluid-rich, high-permeability fracture/pore zone in subsurface

HeatSource

Recharge

Recharge

zone

Downflow

Z

X

Y

Reservoir

Lateralflow

Fault

Surfaceblanket

Productionzone

Productionwell


15/35

GeothermalResourcesAssessment&Development

2main

activities

(in

steps)

GeothermalResourcesExploration(GRE)

Reconnaissance

studies Surfacestudies

Explorationandappraisaldrilling

Prefeasibilitystudies

and

Baseline

EIA

GeothermalResourcesDevelopment(GRD)

Productiondrilling

Powerplantdesign&construction

Powerlineconstruction

Whatis

Rwanda

Geothermal

Resources

Exploration

Strategy(RGRES)?


16/35

Stepwiseapproachtogeothermalexplorationanddevelopment

Step 1

Review existing data

Prepare Project Plan

Step 2 Detailed Geoscientific studies in phases

Step 3

Exploration drilling

Field Appraisal conceptual modeling and review meetings

Step 4 Production Drilling and monitoring

Step 5

EIA and Feasibility

Power plant design construction, reinjection strategies


17/35

CurrentStatus

Gisenyi

Karisimbi

Kinigi

WesternProvince(900Km2)

Gisenyi

Karisimbi Kinigi

NoSurfaceStudiesDone Area

hasnewspringsafter2008

earthquake

Bugarama(over400km2)

A il bl h i l d t


18/35

Available geophysical data


19/35

Kiningi

Karisimbi

Gisenyi

Geothermal Areas Karisimbi Target area about 25Km2


20/35


21/35


22/35


23/35

SummaryofCurrentStatus

Prospect Inception

Report

Surface

Recon

Studies

Detailed

Surface

Studies

Wells Sited Wells

Drilled

Western

region

Yes Yes Partially

Done

NO NO

Southern

region

NO NO NO

Other Areas NO NO NO NO NO


24/35

Issuesaffectinggeothermaldevelopment

Institutional

Inadequatefacilities

Inadequateandwellmotivatedhumanresources

Nospecificdeliverablesandtimelinesforachievinggeothermalexploration

anddevelopmenttargetsintheRNPDP

Inadequateandunpredictablefunding

Local&regionalcollaborationwithallstakeholders

Technical

Dowe

have

geothermal

resources,

how

deep

and

what

is

the

temperature

and

fluid

chemistry? Drillandtestexplorationwells

Inadequatedatatoconclusivelydeterminethegeothermalpotential Drilling+

additionalexploration

Wheredowedrillandwheredowegetwaterfordrilling?


25/35

Issuesaffectinggeothermaldevelopment

Legal&Regulatory

Noexistinglegal&regulatoryframeworkforgeothermalexplorationand

development

Noresourcemanagementact Geothermalsameareaasoil&Gas

Mechanismforgivingoutconcessions

Policy

Incentives&

tariffs

How

to

attract

foreign

investors

Foreignexchangeriskmanagement

Localcommunity,localgovernmentsandlocalprivateinvestorsparticipation

Indirectusesofgeothermalresources

Perception Risky,expensive,Nonbelievers

inviability

of

geothermal

energy

Wh t d t b d ?


26/35

Whatneedstobedone? Planfor220years

Discuss,involve

&

seek

concurrence

of

all

stake

holders

Have

a

sharedcommitment,vision&missiontoachievegeothermal

Detailedsurfacestudies&explorationdrillinginallthe4

geothermalprospects

Formulatebestandmosteconomicdevelopmentscenarios

Drill3exploration

wells

in

each

of

the

4prospects

after

detailed

studies

Locatedrillingtargets&watersources&EIA

Encourageuse

of

well

head

generating

units

Welltesting&reservoirmodelling

Legal&regulatoryframework

Concessionprocedures DowegiveconcessionsonlytoRwanda

h d b d ?


27/35

Whatneedstobedone?

Planfor220years

Sourceforfunding fortraining,equipment&geothermaldevelopment

Prepareexpressionofintereststogaugeinterestinexploration&

developmentofgeothermalresources

Putinplaceincentives&tariffs Howtoattractforeigninvestors

Recruit&Trainstaffbothlocally&overseas(includingonjobtraining)

Engagelocal

communities,

local

governments

and

local

private

investors

participation

Focusonindirectusesofgeothermalresources

Showcase

geothermal

potential

in

Rwanda

through

workshops

&conferences

ChangePerception Shareinformationthroughworksshops,

attendingconferences

for

policy

makers

and

opinion

leaders

A ti iti


28/35

Activities


29/35

WhoShouldbeinvolved TeamApproach

Governmentalpolicies

&

incentives

MININFRA,

MINECOFIN,

RURA,

RWANDADEVELOPMENTBOARD,MINELA

Treatmentofforeigninvestment RDB,MINECOFIN,

Landconcessions,

landownership

issues,

land

administrative

issues

andutilityregulators MININFRA,MINELA,MINALOC,RURA

Environmentalregulations&licencesforgeothermalexploration

REMA,MININFRA

UtilitiesandRegulators

Transmissioninfrastructure&gridextensionplans RECO&RWASCO

Availabilityofengineering/scientificresources ??KIST??UNR??

Staff Requirements


30/35

StaffRequirements

Specialty Cadre Current Additional Remarks

Reservoir

Engineering

Graduate 1 1 SteamfieldandgatheringSystem

Technician 0 2 Well loggingandsteamsystem

Geology Graduate 0 2 Lab,rig&fieldwork

Technician 0 2 Lab&

rig

work

Geophysics Graduate 1 1 Electric, PotentialandSeismology

Technician 0 2 Dataacquisitionandequipment

Geochemistry Graduate 1 1 Lab,field

and

rig

work

Technician 0 2 Dataacquisition,equipment

Environment Graduate 0 1 Liaison onallenvironmentalissues

Technician 0 1 Dataacquisition

and

analysis

Drilling Graduate 0 2 Logistics&drillingoperations

Technician 0 2 Supportdrilling logistics&operations

PowerPlant Graduate 1 1 Operations&maintenance

Technician 0 2

l f d ll f d ff


31/35

Exampleofdrillingcostsfordifferentoptions

Welltype Rwandaowned rig

costsX1000(USD)

E.Acontractedrig

costsX1000(USD)

Internationally

contractedrigcostsX

1000(USD)

Exploration(3) 11,100 14,100 22,500

Appraisal(3) 11,100 14,100 22,500

Production

(4) 14,800 18,800 30,000Drillingcostsper

field

37,000 47,000 75,000

Otherfieldcosts 8,000 8,000 25,000

Totalperfield 45,000 55,000 100,000


32/35

Summaryofindicativecosts

Description Unitprivate

ratesX1000

(USD)

Privatetotal

costsX1000

(USD)

E.A. Unitcosts

X1000(USD)

TotalE.A.costs

X1000(USD)

Surfacestudies

(4fields)1,890 7,560 900 3,600

Watersupply 2,500 2,500

Infrastructure 5,000 20,000 2,000 8,000Exploration

wells(3wells)

7,500 22,500 4,700 14,100

Welltesting(3

wells)

1,500 4,500 120 360

Next12wells 7,500 90,000 4,700 56,400

Testing12wells 1,500 18,000 120 1,440

165,060 86,400


33/35

Description Costs(US$)X1000 Remarks

Surfaceexplorationof

Karisimbi&Bugarama

900 Requiresstrengtheningof

localhumanresourceto

domostofthework

Water&Infrastructurefor

drillingexplorationwells

4,500 Uselocalcontractorsfor

siteconstruction&civil

works.Requires

the

local

privatesectortothe

strengthened

Drill

1

st

3

wells

in

Karisimbi

usingrigsintheEastAfrica

region

14,100 Use

of

rigs

in

the

East

AfricaRegion.Thiscould

involvebilateral

agreementssaywiththe

Ministryof

Energy

in

Kenyarepresentedbythe

GeothermalDevelopment

companyWelltesting&modelling 120

Total 19,620

Required inputs from donors stakeholders


34/35

Required inputs from donors , stakeholders,

investment banks etc

(a)Capacity

Building

HumanResource:Trainingof9graduatesand12technicians Equipmentandsoftware: Equipmentandmaterialfor

geothermalexploration

(b)TechnicalAssistance:

Financing ofdetailedgeoscientificstudiesofKarisimbi,Gisenyi,KinigiandBugarama.

Explorationdrillingof threewellsinKarisimbifield Riskmitigationfundforthreeexploratorydrillinginthe

Karisimbiprospect Development explorationpolicyand regulatoryframework Financeforfeasibilitystudy,pilotpowerplantdesignand

construction


35/35

MURAKOZE

Onacha Rwanda Geothermal Resources Development

Documents

Transcript of Onacha Rwanda Geothermal Resources Development