Fervo Energy

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Fervo Energy is an energy resource company focused on harnessing heat through enhanced geothermal systems (EGS). Co-founded in 2017 by Tim Latimer, a mechanical engineer by background, Latimer worked as a drilling engineer at BHP until 2015. [1] His departure from the oil and gas sector was driven by a desire to apply techniques observed during the shale revolution to geothermal extraction. [2] [3]

Contents

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

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. [3] In the third quarter of 2022, Fervo Energy received $22 million of series C funding from a multitude of venture capitalists. [3] 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. [4] [5]

Background

Petroleum industry applications

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. [6] 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. [6] 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. [6] Fracking has been a controversial method to free up fluids (notably petroleum) from tight hydrocarbon reservoirs.

EGS application

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. [3]

First prototype design by Mark Mclure. An-EGS-doublet-of-horizontal-wells-connected-by-vertical-fracture-stages-normal-or.png
First prototype design by Mark Mclure.

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. [7]

EGS around the world has struggled in being cost-competitive with other carbon-neutral sourced electricity. [8] Vertical wells often encounter thermal short circuiting. [9] 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. [7] This causes certain fractures to produce different water temperatures where they meet at the production well, thus they're heating affects is negated. [7]

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. [7]

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. [10] [11]

Pilot projects

Drilling demonstrations & Nevada Operation

Nevada Operation in 2023. Fervo-Drilling-Operations-Overhead-top.webp
Nevada Operation in 2023.

On July 18, 2023, Fervo Energy announced the completion of its first geothermal plant in Nevada, USA. [13] It 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. The two wells attained a true vertical depth of 8000 feet, with horizontal sections extending 3250 feet. [3] 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. [3] 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. [3] This output is roughly adequate to satisfy the energy needs of 2000 households. [14]

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. [15] 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. [3]

Cape Station Project

On September 25, 2023, Fervo Energy held its groundbreaking ceremony for the Cape Station Geothermal Project in southwest Utah, specifically in Beaver County. 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. [16] 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. [3] [17]

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. [18] Fervo Energy claims this project will generate over 6,000 jobs during construction, generating $437 million in wages. [3]

Comparable plants

A vertical EGS systems with similar heat conditions (as the Nevada Fervo operation) in the north eastern part of Nevada produces over ten times more energy. [19] However, the project has 5 injection and 6 production wells. On a per well bias, each pair is making around 7MW - twice the amount produced at Fervo's plant. [20]

The Vendenheim goethermal plant in eastern France also with a similar heat resource generates 10MW of electrical energy surpassing Fervo's. [21]

A paper published by several engineers backed by Baker Hughes notes that horizontally drilled EGS systems have the potential to become cost and energy competitive with conventional reservoirs if downhole directional drills can be rated to temperatures up to 300Co. Cost competitiveness can also come in the form of combing horizontal EGS with other carbon neutral technologies such as carbon capture. [22]

Related Research Articles

<span class="mw-page-title-main">Geothermal energy</span> Thermal energy generated and stored in the Earth

Geothermal energy and muhammad naseem is thermal energy extracted from the Earth's crust. It combines energy from the formation of the planet and from radioactive decay. Geothermal energy has been exploited as a source of heat and/or electric power for millennia.

<span class="mw-page-title-main">Barnett Shale</span> Geological formation in Texas, United States

The Barnett Shale is a geological formation located in the Bend Arch-Fort Worth Basin. It consists of sedimentary rocks dating from the Mississippian period in Texas. The formation underlies the city of Fort Worth and underlies 5,000 mi2 (13,000 km2) and at least 17 counties.

<span class="mw-page-title-main">Geothermal power in Australia</span> Overview of geothermal power in Australia

Geothermal power in Australia was at one time hoped to provide cost effect, renewable power for Australia. There are locations that have been shown to contain hot granites at depth which hold good potential for development of geothermal energy. Exploratory geothermal wells have been drilled to test for the presence of high temperature geothermal reservoir rocks and such hot granites were detected. However, all these projects have since been abandoned. A small geothermal plant in Queensland experienced problems during commissioning and as at May 2022, remains idle.

<span class="mw-page-title-main">Geothermal energy in the United States</span> Overview of geothermal power in the United States of America

Geothermal energy was first used for electric power production in the United States in 1960. The Geysers in Sonoma and Lake counties, California was developed into the largest geothermal steam electrical plant in the world, at 1,517 megawatts. Other geothermal steam fields operate in the western US and Alaska.

<span class="mw-page-title-main">The Geysers</span> Worlds largest geothermal field, California

The Geysers is the world's largest geothermal field, containing a complex of 18 geothermal power plants, drawing steam from more than 350 wells, located in the Mayacamas Mountains approximately 72 miles (116 km) north of San Francisco, California.

<span class="mw-page-title-main">Shale gas</span> Natural gas trapped in shale formations

Shale gas is an unconventional natural gas that is found trapped within shale formations. Since the 1990s a combination of horizontal drilling and hydraulic fracturing has made large volumes of shale gas more economical to produce, and some analysts expect that shale gas will greatly expand worldwide energy supply.

<span class="mw-page-title-main">Enhanced geothermal system</span> Type of electricity generation system

An enhanced geothermal system (EGS) generates geothermal electricity without natural convective hydrothermal resources. Traditionally, geothermal power systems operated only where naturally occurring heat, water, and rock permeability are sufficient to allow energy extraction. However, most geothermal energy within reach of conventional techniques is in dry and impermeable rock. EGS technologies expand the availability of geothermal resources through stimulation methods, such as 'hydraulic stimulation'.

<span class="mw-page-title-main">Geothermal power</span> Power generated by geothermal energy

Geothermal power is electrical power generated from geothermal energy. Technologies in use include dry steam power stations, flash steam power stations and binary cycle power stations. Geothermal electricity generation is currently used in 26 countries, while geothermal heating is in use in 70 countries.

<span class="mw-page-title-main">Well stimulation</span>

Well stimulation is a well intervention performed on an oil or gas well to increase production by improving the flow of hydrocarbons from the reservoir into the well bore. It may be done using a well stimulator structure or using off shore ships / drilling vessels, also known as "Well stimulation vessels".

AltaRock Energy Inc. is a privately held corporation that focuses on the development of geothermal energy resources and enhanced geothermal systems (EGS). It is headquartered in Seattle, Washington and has a technology development office in Sausalito, California. AltaRock has filed patent applications and holds exclusive licenses for related intellectual property related to EGS. In 2008 it started its first project near The Geysers in California to demonstrate the ability of EGS to be a reliable, renewable and clean source for the production of electric power.

<span class="mw-page-title-main">Shale gas in the United States</span>

Shale gas in the United States is an available source of unconventional natural gas. Led by new applications of hydraulic fracturing technology and horizontal drilling, development of new sources of shale gas has offset declines in production from conventional gas reservoirs, and has led to major increases in reserves of U.S. natural gas. Largely due to shale gas discoveries, estimated reserves of natural gas in the United States in 2008 were 35% higher than in 2006.

United Downs Deep Geothermal Power is the United Kingdom's first geothermal electricity project. It is situated near Redruth in Cornwall, England. It is owned and operated by Geothermal Engineering (GEL), a private UK company. The drilling site is on the United Downs industrial estate, chosen for its geology, existing grid connection, proximity to access roads and limited impact on local communities. Energy is extracted by cycling water through a naturally hot reservoir and using the heated water to drive a turbine to produce electricity and for direct heating. The company plans to begin delivering electricity (2MWe) and heat (<10MWth) in 2024. A lithium resource was discovered in the well.

<span class="mw-page-title-main">Geothermal exploration</span>

Geothermal exploration is the exploration of the subsurface in search of viable active geothermal regions with the goal of building a geothermal power plant, where hot fluids drive turbines to create electricity. Exploration methods include a broad range of disciplines including geology, geophysics, geochemistry and engineering.

<span class="mw-page-title-main">Fracking</span> Fracturing bedrock by pressurized liquid

Fracking is a well stimulation technique involving the fracturing of formations in bedrock by a pressurized liquid. The process involves the high-pressure injection of "fracking fluid" into a wellbore to create cracks in the deep-rock formations through which natural gas, petroleum, and brine will flow more freely. When the hydraulic pressure is removed from the well, small grains of hydraulic fracturing proppants hold the fractures open.

<span class="mw-page-title-main">Fracking in the United Kingdom</span>

Fracking in the United Kingdom started in the late 1970s with fracturing of the conventional oil and gas fields near the North Sea. It was used in about 200 British onshore oil and gas wells from the early 1980s. The technique attracted attention after licences use were awarded for onshore shale gas exploration in 2008. The topic received considerable public debate on environmental grounds, with a 2019 high court ruling ultimately banning the process. The two remaining high-volume fracturing wells were supposed to be plugged and decommissioned in 2022.

<span class="mw-page-title-main">Environmental impact of fracking</span>

The environmental impact of fracking is related to land use and water consumption, air emissions, including methane emissions, brine and fracturing fluid leakage, water contamination, noise pollution, and health. Water and air pollution are the biggest risks to human health from fracking. Research has determined that fracking negatively affects human health and drives climate change.

<span class="mw-page-title-main">Fracking in Canada</span>

Fracking in Canada was first used in Alberta in 1953 to extract hydrocarbons from the giant Pembina oil field, the biggest conventional oil field in Alberta, which would have produced very little oil without fracturing. Since then, over 170,000 oil and gas wells have been fractured in Western Canada. Fracking is a process that stimulates natural gas or oil in wellbores to flow more easily by subjecting hydrocarbon reservoirs to pressure through the injection of fluids or gas at depth causing the rock to fracture or to widen existing cracks.

<span class="mw-page-title-main">Solar augmented geothermal energy</span> Solar-heated artificial underground lake

Solar augmented geothermal energy (SAGE) is an advanced method of geothermal energy that creates a synthetic geothermal storage resource by heating a natural brine with solar energy and adding enough heat when the sun shines to generate power 24 hours a day. The earth is given enough energy in one hour to provide all electrical needs for a year. Available energy is not the issue, but energy storage is the problem and SAGE creates effective storage and electrical power delivery on demand. This technology is especially effective for geothermal wells that have demonstrated inconsistent heat or idle oil or gas fields that have demonstrated the proper geology and have an abundance of solar.

Eavor Technologies Inc. is a global geothermal technology company headquartered in Calgary, Alberta. The firm was founded in 2017 with the goal of producing a scalable form of baseload, dispatchable energy.

<span class="mw-page-title-main">Closed-loop geothermal</span> Closed-loop geothermal, a new type of geothermal energy system

Closed-loop geothermal systems are a type of engineered geothermal energy system containing subsurface working fluid that is heated in a hot rock reservoir without direct contact with rock pores and fractures.: Instead, the subsurface working fluid stays inside a closed loop of deeply buried pipes that conduct Earth’s heat. Closed-loop geothermal systems are one of the prominent categories of next-generation geothermal systems in development today.

References

  1. ↑ "Tim Latimer". CERAWeek. Retrieved March 21, 2024.
  2. ↑ "The U.S. Shale Revolution". The Strauss Center. Retrieved February 16, 2024.
  3. 1 2 3 4 5 6 7 8 9 10 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.
  4. ↑ "Fervo Energy Announces Technology Breakthrough in Next-Generation Geothermal - Fervo Energy". fervoenergy.com. July 18, 2023. Retrieved February 16, 2024.
  5. ↑ Terrell, Michael (November 28, 2023). "A first-of-its-kind geothermal project is now operational". The Keyword. Google.
  6. 1 2 3 Rapier, Robert. "How The Shale Boom Turned The World Upside Down". Forbes. Retrieved February 16, 2024.
  7. 1 2 3 4 5 Shiozawa, Sogo; McClure, Mark W. "EGS designs with horizontal wells, multiple stages, and proppant" (conference paper).
  8. ↑ "DOE Launches New Energy Earthshot to Slash the Cost of Geothermal Power". Energy.gov. Retrieved March 21, 2024.
  9. ↑ 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.
  10. ↑ "Multistage fracturing using plug-and-perf systems". www.worldoil.com. October 4, 2011. Retrieved February 18, 2024.
  11. ↑ Munsell, Faith (September 28, 2017). "Pinpoint-Entry Fracturing vs. Plug and Perf". Keystone Energy Tools. Retrieved February 19, 2024.
  12. ↑ Temple, James (March 7, 2023). "This geothermal startup showed its wells can be used like a giant underground battery". MIT Technology Review. Retrieved March 15, 2024.
  13. ↑ Clifford, Catherine (July 18, 2023). "Fervo Energy hits milestone in using oil drilling technology to tap geothermal energy". CNBC. Retrieved March 21, 2024.
  14. ↑ "California ISO - Understanding electricity". www.caiso.com. Retrieved February 19, 2024.
  15. ↑ "Geothermal | Electricity | 2023 | ATB | NREL". atb.nrel.gov. Retrieved February 19, 2024.
  16. ↑ Blackett, Robert (February 2004). "GEOTHERMAL GRADIENT DATA FOR UTAH" (PDF). Stanford.
  17. ↑ 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.
  18. ↑ "Cooper Basin Enhanced Geothermal Systems". Australian Renewable Energy Agency. Retrieved February 19, 2024.
  19. ↑ "NV Energy". www.nvenergy.com. Retrieved March 21, 2024.
  20. ↑ "The Blue Mountain Geothermal Power Plant, USA". Power Technology. Retrieved February 19, 2024.
  21. ↑ GeoEnergy, Think (May 9, 2022). "Investigation report released on Vendenheim geothermal project in France" . Retrieved February 19, 2024.
  22. ↑ Dick, Aaron; Otto, Mike; Taylor, Kyle; et al. (2012). "A 300°C Directional Drilling System for EGS Well Installation" (PDF). GRC Transactions. 36.
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