Geothermal Energy in Iceland

Kaeo Ahu

CEE 491

Spring 2009

Final Presentation

HISTORY & BACKGROUND� Iceland is the 2nd largest island in

Europe� Located in the North Atlantic Ocean,

near the Arctic Circle

� Has unique geological conditions� Has unique geological conditions� Lies on the boundary of two tectonic

plates called the Mid-Atlantic Ridge

� Also lies above a hot-spot called the Icelandic Plume

� Creating the availability of geothermal resources

HISTORY & BACKGROUND� Iceland’s first settlers used geothermal springs for bathing, cooking &

laundering� Iceland’s capital named Reykjavik or “Smokey Bay” after the “smokey”

steam from hot springs

� 1755-1756: First wells for hot water in Reykjavik and Krisuvik

� 1907: Farmer conveyed steam through concrete pipe to heat home

� 1920s: First boreholes drilled for water to heat spaces

� 1930: First building to be heated by geothermal water -Austurbacjarskoli, a primary school

HISTORY & BACKGROUND� 1940s: State Electricity Authority established

� 1970s: Rise in oil prices� Beginning of geothermal power plant construction

USES & TECHNOLOGY� Main uses are to produce &

provide the country with:

� Electricity

� Heat

� Hot water

USES & TECHNOLOGY� Bore holes are drilled to capture

steam from the earth and volcanoes

� The steam flows through pipes � The steam flows through pipes to the power plants, turning turbines to create electricity

� Steam also flow through pipes to heat buildings and water

MAGNITUDES & COSTS� Iceland has five major geothermal power plants (GPP)

� Two produce electric and thermal energy

� Three produce only electricity

� Together provides 27% of country’s electricity and heat & hot water to 87% of the country

Electricity (Mwe)Thermal (MWt)

Svartsengi Power-Plant 76.5 80

Nesjavellir Power-Plant 120 400

Krafla Power-Plant 60

Reykjanes Power-Plant 100

Hellisheidi Power-Plant 214

MAGNITUDES & COSTS

� Capital costs of GPPs tend to be high

� Exploring resources have high financial risks

� Drilling accounts for most of cost(s) of GPPs

General construction costs� General construction costs

� 2-5 million € per MW of capacity ($2.7-$6.7 million)

� $1.14 - $2.85 billion (Electric)

� $960 million - $2.4 billion (Thermal)

� General operational costs

� 0.04-0.10 € per kWh

SOCIAL & ECONOMIC BENEFITS� Global leaders in renewable

energy

� Partnerships around the world to share expertise and developmentsdevelopments

� “Unlimited” resources

� Exploration of uses of hydrogen

� Hydrogen stations

SOCIAL & ECONOMIC BENEFITS� Recreation & Tourism

� Blue Lagoon and other spas

� Whale watching

� Oil boats used due to less oil importingoil importing

� Sight seeing

� Geysers

WHAT MAKES THIS “GREEN”?� Use of natural resources

� Unlimited

� Renewable

� No air pollution� No air pollution

� No green house gases emission

WHAT MAKES THIS “GREEN”?� Less use of coal & oil

� Plans for 100% fossil-fuel free

PROBLEMS & CHALLENGES� Financial risks in exploring

deep resources

� Drilling bore holes extremely dangerous

� Explosion in 1970s created Crater Viti or “Manmade Hell”

Thank You!