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KenGen Risks Losing Olkaria Geothermal Wells Over Licence Error

KenGen Risks Losing Olkaria Wells Over 18-Year Licence Blunder Kenya Electricity Generating Company (KenGen) faces a serious legal and operational risk at Olkaria after an error in the coordinates of its geothermal licence left part of the company’s wells, steam infrastructure and other assets outside its legally recognised area. The licensing mistake, made nearly two decades ago, remains unresolved despite the Ministry of Energy and Petroleum acknowledging the problem in 2017.  The dispute has raised questions about the security of KenGen’s investments, the government’s management of geothermal resources and the potential consequences for Kenya’s electricity supply. Olkaria is the country’s most important geothermal centre and accounts for the overwhelming majority of Kenya’s installed geothermal generation capacity.  Licence Error Exposes Strategic Assets The problem dates back to September 19, 2008, when the Ministry of Energy and Petroleum issued KenGen a licence covering ...

$14.2 Million Announced Subsequently by US DOE For Enhanced Geothermal Pilot Projects

Unleashing the Power Beneath: The Second-Round EGS Pilot Demonstrations

By: Robert Buluma

image:wells of power at Kenyan Geothermal Field gushing steam

Geothermal energy is a game-changer in the quest for sustainable and reliable energy sources. The U.S. Department of Energy (DOE) is pushing the boundaries of this potential through its Geothermal Technologies Office (GTO). With the second round of funding opportunities for Enhanced Geothermal Systems (EGS) pilot demonstrations, authorized under President Biden's Bipartisan Infrastructure Law, the future of geothermal energy looks brighter than ever. This initiative aims to catapult EGS into the mainstream, contributing significantly to the goal of a carbon pollution-free electricity system by 2035.

 What Are Enhanced Geothermal Systems (EGS)?

Enhanced Geothermal Systems (EGS) represent a cutting-edge approach to geothermal energy. Unlike traditional geothermal systems that rely on naturally occurring hydrothermal resources, EGS creates man-made geothermal reservoirs. By injecting fluid into hot rock formations, EGS enhances the permeability of these rocks, allowing heat to be extracted and converted into electricity or used for heating purposes.

The Second-Round Funding Opportunity

The second-round funding opportunity, identified as DE-FOA-0002826, comes with a substantial $14.2 million up for grabs. This initiative aims to support a variety of pilot projects that demonstrate EGS in different geologic settings. These projects will help advance EGS towards achieving DOE’s ambitious Enhanced Geothermal Shot™ and GeoVision analysis goals. The ultimate objective is to harness 90 gigawatts of domestic electricity-generating capacity by 2050, enough to power over 65 million American homes.

Key dates for this funding opportunity are:

- Letters of Intent Due: July 18, 2024

- Full Applications Due: September 25, 2024

- Selection Notifications: December 2024

- Award Negotiations: January 2025

Objectives and Benefits

The economic viability of EGS hinges on developing and improving technologies to understand the subsurface, including geological qualities and permeability. By supporting EGS pilot demonstrations, the DOE aims to:

Model Reliability and Performance: Prove the reliability and performance of EGS technologies, ultimately reducing risks associated with their development.

Learn-by-Doing: Utilize pilot projects to identify new challenges that might not be evident at smaller, lab-based scales.

Validate Design Approaches: Test hypotheses and validate design approaches tailored to specific geological conditions.

Standardize Best Practices: Establish best practices and general operational processes through collaboration.

Market Connection: Begin connecting with consumers and off-takers to understand their needs, helping define the market for geothermal energy.

Focus on the Eastern United States

The second-round funding opportunity is particularly focused on Topic Area 4, which seeks to demonstrate EGS at a well-characterized site in the eastern United States with potential for near-term electricity or thermal power production. This focus aims to diversify the geographic and geological applicability of EGS, paving the way for broader development and implementation.

Get Involved

If you're interested in this transformative opportunity, review the second-round FOA Quick Guide for eligibility details and application instructions. Explore the Teaming Partner List if you wish to form a partnership to apply

The second-round EGS pilot demonstrations represent a pivotal step towards unlocking the full potential of geothermal energy. By fostering innovation, collaboration, and practical implementation, these projects will not only drive technological advancements but also contribute significantly to the nation's clean energy goals. Don’t miss the chance to be part of this groundbreaking journey towards a sustainable energy future.


For more information and to stay updated, visit the Geothermal Technologies Office page on Energy.gov.

Source:Energy Gov

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