Recovery Act funding recipient profile II: AltaRock’s EGS work lands $25 M

In California, AltaRock Energy, Inc. will get nearly $25 million in DOE Recovery Act funding to demonstrate EGS – Engineered Geothermal System – technology to generate power from the Newberry Known Geothermal Resource Area in Oregon in partnership with Davenport Power. EGS has the potential to bring geothermal energy to areas across the country, and around the world for that matter, that do not have near-surface geothermal sources or naturally occurring hot water resources at any depth. This is a key technology to watch.

Davenport Power, which operates the Newberry site, had previously drilled a 10,000-foot well that came up dry. According to AltaRock CEO Donald O’Shei, this well will be injected with cold water at high pressure to fracture the rock at the base of the well creating pathways and a reservoir for water to circulate through the rock, which he said is at a temperature of 600 degrees F. This is done over a week, and may be repeated as many as three times.

As the fracturing progresses, a series of sensors at the surface measure the noise generated by the process and generate a 3D computer model showing the resulting fractures and their location nearly in real time. The returning steam – carrying tracers added by the company – also adds data on the volume of space generated. There is additional proprietary technology used to determine the success or failure of the fracturing process that O’Shei declined to discuss. A final measure of the amount of volume created is only available when the system is fully in place and can be flowed.

Getting the EGS system in place fully will require two additional wells, and the program funding allows for drilling these wells. The existing well will be used for injection, with the final pair acting as production wells.

O’Shei said that the relationship with Davenport grew organically. The companies knew of each other from the industry, and investors in each company were known to each other as well. Once their well came up dry, Davenport went looking for an EGS partner, and didn’t have far to look. The project is to be completed by the end of 2010.