WorldWide Drilling Resource

36 OCTOBER 2013 WorldWide Drilling Resource ® The Search for Geothermal Resources in Chile Gets a Boost Compiled by Bonnie Love, Editor WorldWide Drilling Resource ® Chile is planning to launch an insur- ance program to help encourage addi- tional geothermal exploration in 2014, according to Carlos Barría, head of the Energy Ministry's renewable energy divi- sion. “Any geothermal project in the world runs the risk of not being successful - of not finding the quantities of vapor that were expected. But in Chile, it's even harder because we are just starting out and don't have much reserve informa- tion,” Barría said. Drilling costs can consume up to 60% of the total capital investment of a project. The country’s Geothermal Concession Law and Non Conventional Renewable Energy (ERNC) Law, combined with the possibility of recovering part of the drilling costs in case of failure, should encourage geothermal development in Chile. The Chilean government is working with IDB and the World Bank to create failed drilling insurance to help alleviate some of the risk of exploratory drilling. The government is also asking for $30- $35 million from the Clean Technology Fund (CTF) to help with costs. As part of its proposal to CTF, Chile plans to put up $14 million of its own money to create a geothermal exploration center. The government is waiting to approve coverage models from both banks and they are meeting with CTF in November with the hope of gaining final approval. “This year, we will receive a decision on the amount and method, and would begin implementation next year,” Barría said. Chile is home to roughly 3000 volca- noes and many experts believe the coun- try’s geothermal resources could produce up to 16,000 megawatts of geothermal power, and the maximum demand is only 9000 megawatts. Although Chile current- ly has 75 geothermal exploration conces- sions; so far, the country hasn’t produced a single megawatt of geothermal power. Since many of the projects are located in the Andean mountain range, there have been difficulties with construction and logistics. If Chile is successful in launching drilling insurance and securing CTF fund- ing, Barría has high expectations. “By 2025-2030 we hope to have 1000-1500 megawatts of geothermal [power] in Chile,” he said. “In the next decade, we ex- pect to enter the world's top ten in terms of geothermal.” Alterra Power is one of the compa- nies eager to tap Chile’s geothermal potential. Their Mariposa concession is on track to become the nation’s first geo- thermal power plant. According to John Selters, general manager of Alterra Chile, the power plant should be online in 2017 or 2018. By studying the magmatic systems, heat- water-rock interactions, fluid geochemistry, and reservoir architecture among other things, the Andean Geothermal Center of Excellence is working to build a geological model of geothermal systems in the Andean Mountain Range. Photo courtesy of cega.ing.uchile.cl 0/6'/4+0/ 02 .02' +/(02.#4+0/ ; 777 0*+07#4'27'-- 02) 02 .#+- 077# #33/30((+%' %0. 06'.$'2 #4 4*' -#&&+/ *2+/' '/4'2 4'-:'2 & 0-5.$53 "'&/'3&#9 1. 0#2& ''4+/) !*523&#9 #. ')+342#4+0/ #. 8*+$+402 '451 00/ !2#&'3*07 1. !2#&'3*07 #. 2'#,(#34 5(('4 #. '.+/#23 00/ 1. ''4+/) 5/%*'0/ 1. +-'/4 5%4+0/ #((-' 1. %*0-#23*+1 20)2#. #((-' "+//'2 #//05/%'& 1. '.+/#2 The Search trans. cont’d on page 40.