Presentation given by Alexander Richter, Director at CanGEA and Founder & Principal at ThinkGeoEnergy Event: Global Geothermal Summit, Reykjavik/ Iceland - October 12, 2011

1. RAISING THE BAR
POSITION OF GEOTHERMAL
ENERGY TODAY
Alexander Richter
Canadian Geothermal Energy Association (CanGEA)
ThinkGeoEnergy.com
@thinkgeoenergy
12 October 2012

2. • Collective voice of Canada's
geothermal energy industry
• Non-profit industry association
• Industry promotion & promotion
of potential
• Outreach events
• Geothermal Reporting Code
• International representation
(IEA-GIA)

4. THE ROLE OF
GEOTHERMAL
TODAY

5. GEOTHERMAL UTILIZATION

6. Current & Planned Capacity
United States 3,093 2,307
Indonesia 1,197 2,303
Philippines 1,970 530
New Zealand 628 612
Mexico 958 182
Italy 843 77
Iceland 575 225
Japan 536 0
Kenya 167 363
El Salvador 204 86
Other 611 674
2010 Additional capacity planned till 2015

7. Coal
Gas
Hydro
Wind
Nuclear
Oil
Biomass
Waste
GEOTHERMAL ELECTRICTY
in TWh, IEA 2008

8. PERCEPTION AND
POSITION OF THE
INDUSTRY

9. “Geothermal
energy, potentially
the largest – and
presently most
misunderstood -
source of energy”
Al Gore, Our Choice

10. “The amount of
geothermal
energy potentially
available is
effectively
unlimited”
Steven Chu,
U.S. Secretary of Energy

11. PERCEPTION

12. PERCEPTION
Bathing monkeys in Jigokudani hot springs, Japan

13. PERCEPTION

14. PERCEPTION
Geothermal Energy
Geo(thermal) Power,
Geothermal Heat,
Geo-Exchange

15. REPRESENTATION
Government
Industry
Industry Associations
IEA

16. POSITIONING
Marketing
Representation
Advertisement
Visibility

17. POSITIONING

18. OUTLOOK FOR
THE INDUSTRY

19. Transmission, Permitting, Supply Chain Scaling, and Natural Gas Volatility
US carbon legislation and National RPS drives
45,000 sustained growth in the US. This is complemented
by significant growth in Indonesia and the
High Case
Philippines. Niche low-temperature and EGS activity
Base Case picks up momentum in Australia, and to a lesser
40,000 extent in Central Europe
Installed 2008
35,000 Increased growth internationally, with
Southeast Asia, Latin America, Chile,
Mexico, and East Africa complementing
steady growth in the US. Mega-scale
30,000 projects in New Zealand also brought
Near-term growth driven by online, with potential for additional
the US, New Zealand, and growth in Iceland
25,000 increased activity in Indonesia
and Turkey
MW
20,000
15,000
10,000
5,000
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: Emerging Energy Research

21. Source: Islandsbanki – Presentation GRC 2010

22. PROJECT TIMELINE
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year …
Exploration Phase
Explorat.
Pre-Feasibility
Pre-Feas.
Feasibility
Feasibility
Detailed Design & Construction
Detailed Design & Construction
Operation & Maintenance
Operation & Maintenance
Comment: Permitting for exploration and development can – in some cases – add up to one additional year to this time frame.
Source: Glitnir

23. VALUE CHAIN
Start-up
Exploration/ Feasibility
Detailed Start of
Pre-Feasibility
Design & Operation
Construction
Mezz./ Bridge
Project
Debt, Const.
Financing
Financing
Venture
Development Drilling
Project
Tax
Capital
Equity
Equity
Equity
Equity
• Legal Work
• Geophysical surveys
• Drilling of first • Drilling & testing of • Running &
• Concession/ Lease
• Geochemical and geological successful, full-sized remaining production maintaining
• Permits
data collection & analysis
production well.
and injection wells
power plant
• Temperature gradient drilling
• Confirmation Wells,
• Civil works required
• Possible
• Focused Exploration on most • Reserve Estimates
• Final design & testing
Extension of
favorable resource area
• Preliminary Design
Plant
• Sufficient Exploration data
collected & analyzed
Source: Islandsbanki

24. BUSINESS MODEL

25. MARKET STIMULATION
• Feed-in-tariffs
Driving demand
• Renewable Portfolio Standards
• Drilling grants & loan programs
Supporting development
• Insurance tools
• Loan guarantees
Financing stimulation
• Production/ Investment tax credits
• Carbon credits, IFC, World Bank
Other drivers
• GeoFund, Development Banks.

26. SUMMARY
• Marginal role of geothermal in global picture
• Important role for many countries
• Lack of political support
• Lack of visibility
• Concerted efforts in promotion to public and
politics necessary