Fervo Energy
Fervo Energy is an energy resource company focused on harnessing heat through enhanced geothermal systems (EGS). It was co-founded in 2017 by Tim Latimer, a mechanical engineer who worked as a drilling engineer at BHP until 2015. His departure from the oil and gas sector was driven by a desire to apply techniques observed during the shale revolution to geothermal extraction.[1][2]
On July 18, 2023, Fervo Energy announced that their first pilot geothermal plant was successful in generating 3.5 MW (megawatts) of baseload power and consistently maintained flow rates of 60 liters per second (l/s).
Financing
[edit]Fervo Energy has been backed by over $400 million USD in equity or non-equity backed funding and approximately $17 million in non-dilutive grants.[2] In the third quarter of 2022, Fervo Energy received $22 million of series C funding from a multitude of venture capitalists.[2] In 2021, Fervo Energy partnered with Alphabet, the parent company of Google, in hopes that Fervo can provide green electricity to Alphabet's cooling centres in the Las Vegas cloud region which met the three demands of Alphabet: baseload, green sourced and nearby.[3][4]
Background
[edit]Petroleum industry applications
[edit]By 2005, American oil production had reached a 35-year low, with the United States producing just over 50% of what it had produced in 1976.[5] This significant decline led to a reliance on foreign imports, perpetuating a constant feeling of unease in markets due to foreign producers not having common geopolitical interests.[citation needed] In 2010, two key technologies emerged that allowed the American oil industry to grow at record rates: horizontal drilling and hydraulic fracturing, commonly known as fracking.[5] Fracking is a process by which horizontal wells are drilled, stacked one upon another, and then fractures are induced to connect a multitude of horizontal wells. This allows the surface area of the reservoir to grow while improving permeability and consequently achieving higher barrel production daily.[5] Fracking has been a controversial method to free up fluids (notably petroleum) from tight hydrocarbon reservoirs.
EGS application
[edit]The first time shale fracking methodologies were proposed to be applied for geothermal use was in 2013. It was brought forth by Mark Mclure, who is now a technical consultant at Fervo energy.[2]
Mark Mclure, along with co-author Sogo Shiowaza, believed that the combination of horizontal drilling and fracking first utilized in the petroleum sector has the potential to de-risk EGS systems. As long as there is sufficient amounts of heat, the system will produce viable amounts of electrical energy with little risk no matter natural permeability.[6]
EGS around the world has struggled in being cost-competitive with other carbon-neutral sourced electricity.[7] Vertical wells often encounter thermal short circuiting.[8] This is where shallower induced fractures are better transmitters of water then deeper ones. This is often due to less normal stress at shallower depth and higher viscosity where the deeper fractures have the opposite effects.[6] This causes certain fractures to produce different water temperatures where they meet at the production well, thus their heating effects are negated.[6]
Another issue is zonal isolation of fracturing. Modelling induced fracturing is simple, however the deeper the hole, the less accurate modelling becomes. Thus, predicting fracture geometry is much more difficult, leading to fractures being disconnected to the production well.[6]
Horizontal drilling proposes to tackle both thermal short circuiting and zonal isolation by having the producing reservoir all at the same depth. By having the injection and production drilled horizontally, all induced fractures will sit in the same normal stress field, same temperature zone and thus have the same viscosity eliminating the potential of short circuits. To induce optimal fractures, Fervo Energy uses the plug and perforation method, again adopted from the unconventional oil industry. The plug and perforation system isolates stages from one another to decrease chances of unwanted fracture interactions when the fractures are first initiated.[9][10]
Pilot projects
[edit]Drilling demonstrations & Nevada Operation
[edit]On July 18, 2023, Fervo Energy announced the completion of its first geothermal plant in Nevada, USA.[11] Project Red marked the first use of horizontal wells in an EGS system in the world. The primary aim of this was to demonstrate to investors the viability of employing horizontal drilling technology in geothermal applications.[12] The two wells attained a true vertical depth of 8000 feet, with horizontal sections extending 3250 feet.[2] The project sustained drilling rates of 75 feet per hour, in a geological setting comprising hard metasedimentary and igneous formations. This ranked the project in the top quartile of drilling rates for hard rock formations.[2] The geothermal gradient measured approximately 75°C/km. The plant attained flow rates of 60 l/s,generating a baseload of 3.5MW of electric power.[2] This output is roughly adequate to satisfy the energy needs of 2000 households.[13]
The National Renewable Energy Laboratory (NREL) has previously predicted the technical aspects of EGS over the years. In 2022 it had forecasted that flow rates of 60 l/s would be attainable under a "moderate case" scenario by 2035.[14] Fervo Energy accomplished this feat in 2023, albeit at a notably higher levelized cost of electricity (LCOE). Fervo's ongoing efforts are focused on scaling up production and reducing costs.[2]
The site will be developed into the Corsac Station Enhanced Geothermal Project, generating 115 MW, which would be sold to NV Energy and in turn Google.
Cape Station Project
[edit]On September 25, 2023, Fervo Energy held its groundbreaking ceremony for the Cape Station Geothermal Project in southwest Utah. Beaver County has geothermal gradients ranging from 50°C to 500°C/km. However, most boreholes indicate a geothermal gradient between 70°C and 100°C/km.[15] Fervo estimates that this plant has the potential to generate up to 400MW of electrical power by 2028. To increase electrical production and scale the previous design in Nevada, Fervo Energy proposes that it will have multiple horizontal wells stacked upon each other, with each level having its own injection and production well to limit short-circuiting. Lateral well lengths are also proposed to be increased to beyond 10,000 feet, with casing diameter widened up to 13 3/8" to decrease wellbore friction.[2][16]
If successful, this project will be the largest EGS plant in the world (by energy production), surpassing the Cooper Basin Project in Australia by 8-fold.[17] Fervo Energy claims this project will generate over 6,000 jobs during construction, generating $437 million in wages.[2] It is expected to start generating electricity in 2026.[18]
In June 2024, Fervo announced the project had contracted to sell 320 MW to Southern California Edison.[19]
References
[edit]- ^ "The U.S. Shale Revolution". The Strauss Center. Retrieved February 16, 2024.
- ^ a b c d e f g h i j Norbeck, Jack Hunter; Latimer, Timothy (July 18, 2023). "Commercial-Scale Demonstration of a First-of-a-Kind Enhanced Geothermal System". eartharxiv.org (preprint submitted to EarthArXiv). Retrieved April 8, 2024.
- ^ "Fervo Energy Announces Technology Breakthrough in Next-Generation Geothermal - Fervo Energy". fervoenergy.com. July 18, 2023. Retrieved February 16, 2024.
- ^ Terrell, Michael (November 28, 2023). "A first-of-its-kind geothermal project is now operational". The Keyword. Google.
- ^ a b c Rapier, Robert. "How The Shale Boom Turned The World Upside Down". Forbes. Retrieved February 16, 2024.
- ^ a b c d e Shiozawa, Sogo; McClure, Mark W. "EGS designs with horizontal wells, multiple stages, and proppant" (conference paper).
- ^ "DOE Launches New Energy Earthshot to Slash the Cost of Geothermal Power". Energy.gov. Retrieved March 21, 2024.
- ^ Gradl, Christian (February 2018). Review of Recent Unconventional Completion Innovations and their Applicability to EGS Wells. 43rd Workshop on Geothermal Reservoir Engineering (conference paper). Stanford, California.
- ^ "Multistage fracturing using plug-and-perf systems". www.worldoil.com. October 4, 2011. Retrieved February 18, 2024.
- ^ Munsell, Faith (September 28, 2017). "Pinpoint-Entry Fracturing vs. Plug and Perf". Keystone Energy Tools. Retrieved February 19, 2024.
- ^ Clifford, Catherine (July 18, 2023). "Fervo Energy hits milestone in using oil drilling technology to tap geothermal energy". CNBC. Retrieved March 21, 2024.
- ^ "America's first 'enhanced' geothermal plant just got up and running". Canary Media. November 28, 2023. Retrieved June 27, 2024.
- ^ "California ISO - Understanding electricity". www.caiso.com. Retrieved February 19, 2024.
- ^ "Geothermal | Electricity | 2023 | ATB | NREL". atb.nrel.gov. Retrieved February 19, 2024.
- ^ Blackett, Robert (February 2004). "GEOTHERMAL GRADIENT DATA FOR UTAH" (PDF). Stanford.
- ^ Penmatcha, V. R.; Arbabi, Sepehr; Aziz, Khalid (September 1, 1999). "Effects of Pressure Drop in Horizontal Wells and Optimum Well Length". SPE Journal. 4 (03): 215–223. doi:10.2118/57193-PA.
- ^ "Cooper Basin Enhanced Geothermal Systems". Australian Renewable Energy Agency. Retrieved February 19, 2024.
- ^ "Fracking for heat: Utah could become home to world's largest enhanced geothermal plant". The Salt Lake Tribune. Retrieved June 27, 2024.
- ^ Roth, Sammy (June 25, 2024). "Column: Good news for 100% clean energy. Geothermal has finally arrived". Los Angeles Times. Retrieved June 27, 2024.