Legislature(2023 - 2024)BUTROVICH 205
04/12/2023 03:30 PM Senate RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| SB78 | |
| Consideration of Governor Appointees | |
| SB92 | |
| SB69 | |
| Presentation(s): Alaska's Geothermal Resources | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 92 | TELECONFERENCED | |
| *+ | SB 69 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 78 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE RESOURCES STANDING COMMITTEE
April 12, 2023
3:30 p.m.
MEMBERS PRESENT
Senator Click Bishop, Co-Chair
Senator Cathy Giessel, Co-Chair
Senator Bill Wielechowski, Vice Chair
Senator Scott Kawasaki
Senator James Kaufman
Senator Forrest Dunbar
Senator Matt Claman
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 78
"An Act relating to hunting, trapping, and fishing licenses for
certain nonresident postsecondary students; and providing for an
effective date."
- MOVED SB 78 OUT OF COMMITTEE
CONSIDERATION OF GOVERNOR APPOINTEES
Board of Game
Jacob Fletcher - Talkeetna
- CONFIRMATION ADVANCED
SENATE BILL NO. 92
"An Act relating to state ownership of submerged land underlying
navigable water within the boundaries of and adjacent to federal
areas; and providing for an effective date."
- HEARD & HELD
SENATE BILL NO. 69
"An Act relating to geothermal resources; relating to the
definition of 'geothermal resources'; and providing for an
effective date."
- HEARD & HELD
PRESENTATION(S): ALASKA'S GEOTHERMAL RESOURCES
- HEARD
PREVIOUS COMMITTEE ACTION
BILL: SB 78
SHORT TITLE: HUNT/FISH LICENSE FOR NONRESIDENT STUDENT
SPONSOR(s): SENATOR(s) WILSON
02/24/23 (S) READ THE FIRST TIME - REFERRALS
02/24/23 (S) RES, FIN
04/03/23 (S) RES AT 3:30 PM BUTROVICH 205
04/03/23 (S) Heard & Held
04/03/23 (S) MINUTE(RES)
04/12/23 (S) RES AT 3:30 PM BUTROVICH 205
BILL: SB 92
SHORT TITLE: STATE OWNERSHIP OF SUBMERGED LAND
SPONSOR(s): SENATOR(s) GIESSEL BY REQUEST
03/08/23 (S) READ THE FIRST TIME - REFERRALS
03/08/23 (S) RES
03/29/23 (S) RES AT 3:30 PM BUTROVICH 205
03/29/23 (S) Heard & Held
03/29/23 (S) MINUTE(RES)
04/12/23 (S) RES AT 3:30 PM BUTROVICH 205
BILL: SB 69
SHORT TITLE: GEOTHERMAL RESOURCES
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/15/23 (S) READ THE FIRST TIME - REFERRALS
02/15/23 (S) RES, FIN
04/12/23 (S) RES AT 3:30 PM BUTROVICH 205
WITNESS REGISTER
JACOB FLETCHER, Appointee
Board of Game
Alaska Department of Fish and Game (ADF&G)
Talkeetna, Alaska
POSITION STATEMENT: Testified for reappointment to the Board of
Game.
MARK RICHARDS, Executive Director
Resident Hunters of Alaska (RHA)
Fairbanks, Alaska
POSITION STATEMENT: Testified that RHA was neutral on the
reappointment of Jacob Fletcher to the Board of Game because the
board is too weighted in favor of commercial hunting interests.
WAYNE KUBAT, Vice President
Alaska Professional Hunter's Association (APHA)
Wasilla, Alaska
POSITION STATEMENT: Testified in support of the reappointment of
Jacob Fletcher to the Board of Game.
CRAIG COMPEAU, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 92.
MIKE TINKER, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 92.
JOHN BOYLE, Commissioner-Designee
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Introduced SB 69 on behalf of the
administration.
JOHN CROWTHER, Deputy Commissioner
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Participated in the presentation for SB 69.
DR. DAVID LEPAIN, Director and State Geologist
Division of Geological and Geophysical Surveys
Department of Natural Resources
Fairbanks, Alaska
POSITION STATEMENT: Participated in the presentation for SB 69.
BRETT HUBER, Chair
Alaska Oil and Gas Conservation Commission
Anchorage, Alaska
POSITION STATEMENT: Provided information during the hearing on
SB 69.
BERNIE KARL, President
Chena Power
Fairbanks, Alaska
POSITION STATEMENT: Delivered a presentation on Alaska's
geothermal resources.
ACTION NARRATIVE
3:30:33 PM
CO-CHAIR CLICK BISHOP called the Senate Resources Standing
Committee meeting to order at 3:30 p.m. Present at the call to
order were Senators Dunbar, Claman, Kawasaki, Kaufman,
Wielechowski, Co-Chair Giessel, and Co-Chair Bishop.
SB 78-HUNT/FISH LICENSE FOR NONRESIDENT STUDENT
3:31:47 PM
CO-CHAIR BISHOP announced the consideration of SENATE BILL NO.
78 "An Act relating to hunting, trapping, and fishing licenses
for certain nonresident postsecondary students; and providing
for an effective date."
3:32:01 PM
CO-CHAIR GIESSEL moved to report SB 78, work order 33-LS0372\A,
from committee with individual recommendations and attached zero
fiscal note.
3:32:16 PM
CO-CHAIR BISHOP found no objection and SB 78 was reported from
the Senate Resources Standing Committee.
^CONSIDERATION OF GOVERNOR APPOINTEES
CONSIDERATION OF GOVERNOR APPOINTEES
BOARD OF GAME
3:32:23 PM
CO-CHAIR BISHOP announced the consideration of governor
appointee Jacob Fletcher to the Board of Game.
3:32:52 PM
JACOB FLETCHER, Appointee, Board of Game, Talkeetna, Alaska,
Testified for reappointment to the Board of Game. He stated that
he owns a big game guide business that operates predominantly on
Kodiak Island in the spring and fall. He was recently awarded a
federal guide-use area in the Kenai Wildlife Refuge and looks
forward to operating there in 2024. He is an outdoorsman and is
very familiar with the way that game regulations are implemented
in the field. He has served one previous term on the Board of
Game and he believes the commitment from all participants makes
the process the best in the world. As a consumptive and non-
consumptive user, he committed to continue to look out for the
wild game in Alaska.
3:35:07 PM
CO-CHAIR BISHOP opened public testimony.
3:35:18 PM
MARK RICHARDS, Executive Director, Resident Hunters of Alaska
(RHA), Fairbanks, Alaska, stated that RHA has more than 3,200
members statewide that advocate for sustainable wildlife
management policies that enhance and prioritize resident hunting
opportunities. Therefore, RHA was neutral on the reappointment
of Jacob Fletcher because the board is more heavily weighted in
favor of commercial hunting interests than ever before. Mr.
Fletcher is currently one of the five licensed guides and one
retired guide on the seven-member board. If he is reappointed,
he will be one of four guides on this seven-member board. He
emphasized that RHA is not against guides and not against Mr.
Fletcher; RHA is only looking out for the interests of resident
hunters. He expressed interest in having conversations about how
to reform both the Board of Game and the Board of Fisheries to
ensure balance, regardless of whom the governor appoints.
3:37:26 PM
WAYNE KUBAT, Vice President, Alaska Professional Hunter's
Association (APHA), Wasilla, Alaska, testified that APHA
supports the reappointment of Jacob Fletcher to the Board of
Game. He lives fulltime in rural Alaska, understands the unique
challenges of living and working remotely, and he knows how
important fish and wildlife resources are to rural communities.
He brings unique viewpoints and experiences to the board
process, is accessible to the public, is willing to listen to
all sides of the issue, and is committed to making the best
decisions he can on wildlife issues. He restated support for the
appointment.
3:38:37 PM
CO-CHAIR BISHOP closed public testimony.
3:38:47 PM
CO-CHAIR GIESSEL stated that the Senate Resources Committee
reviewed the qualifications of the governor's appointee, and
recommends the following name be forwarded to a joint session
for consideration:
Board of Game
Jacob Fletcher - Talkeetna
Signing the reports regarding appointments to boards and
commissions in no way reflects individual members' approval or
disapproval of the appointees; the nominations are merely
forwarded to the full legislature for confirmation or rejection.
CO-CHAIR BISHOP stated that the name would be forwarded to the
joint session.
SB 92-STATE OWNERSHIP OF SUBMERGED LAND
3:39:14 PM
CO-CHAIR BISHOP announced the consideration of SENATE BILL NO.
92 "An Act relating to state ownership of submerged land
underlying navigable water within the boundaries of and adjacent
to federal areas; and providing for an effective date."
3:39:30 PM
CO-CHAIR BISHOP opened public testimony on SB 92.
3:39:44 PM
CRAIG COMPEAU, representing self, Fairbanks, Alaska, testified
in support of SB 92. He pointed out that the state was given
ownership of submerged lands at statehood, that there were
nearly one million miles of river in Alaska, and that the
federal government had recognized just nine percent as
navigable. He commented that at this rate it would take hundreds
of years for the federal government to designate all the rivers.
He opined that it was time for the state to say enough. The
landmark Sturgeon decision hasn't changed the mindset in some
federal agencies; no change has been made to the US National
Park Service (USNPS) regulation on the use of hovercraft in
Alaska. SB 92 makes it clear that the state is finally taking
control of what was promised at statehood.
CO-CHAIR BISHOP asked him to send the testimony to his office
for distribution because some of it was broken.
3:42:48 PM
MIKE TINKER, representing self, Fairbanks, Alaska, testified in
support of SB 92. He stated that he had been involved in natural
resources issues for decades. He characterized SB 92 as a fight
against federal overreach. He mentioned the Sturgeon decision
and noted that there had been no changes in regulation. He
voiced support for the systematic approach and the committee
substitute (CS) that was adopted during the previous meeting.
3:44:38 PM
CO-CHAIR BISHOP closed public testimony on SB 92 and held the
bill for further consideration.
3:44:50 PM
At ease
SB 69-GEOTHERMAL RESOURCES
3:47:14 PM
CO-CHAIR BISHOP reconvened the meeting and announced the
consideration of SENATE BILL NO. 69 "An Act relating to
geothermal resources; relating to the definition of 'geothermal
resources'; and providing for an effective date."
He noted that this was the first hearing.
3:47:40 PM
JOHN BOYLE, Commissioner-Designee, Department of Natural
Resources, Anchorage, Alaska, stated that a most important
priority for DNR is to advance energy security in Alaska. He
highlighted that while a number of areas within the state should
be very conducive to geothermal exploration and development,
these areas had not been delineated and characterized for
decades. He said it is also important to ensure that the leasing
statutes and regulations encourage and promote the exploration
and development of the identified energy resources. DNR believes
that advances in technology provide multiple opportunities to
develop geothermal resources along the volcanic chain and areas
in the Interior with both warm and hot springs. SB 69 is
important to this effort.
3:51:15 PM
JOHN CROWTHER, Deputy Commissioner, Department of Natural
Resources, Anchorage, Alaska, described the presentation and
introduced DR. LePain.
3:51:41 PM
DR. DAVID LEPAIN, Director and State Geologist, Division of
Geological and Geophysical Surveys, Department of Natural
Resources, Fairbanks, Alaska, began the presentation on slide 4,
"Fundamental Ingredients of Useable Geothermal Energy." He
explained that the graphic on the left shows a typical high
temperature hydrothermal system that used hot water at depth to
power turbines that generate electricity. There is a power plant
at the surface and production wells (represented with the red
arrows) that move hot fluid up from depth. The hot fluid goes
into the system and turns a turbine that generates power. The
fluid that has gone through this process has cooled and is
reinjected at some distance from the production wells.
He described the following requirements:
• Elevated geothermal gradient
• Porosity and permeability for the migration of
fluids
• Surface access
• Sufficiently large thermal system
• Customers for energy
3:54:11 PM
CO-CHAIR BISHOP asked Mr. Crowther if this type of reinjection
well would need Class VI certification.
MR. CROWTHER answered that geothermal wells fall under Class V
of the Environmental Protection Agency's (EPA) underground
injection control program for the Safe Water Act. The Class V
category applies to the injection of non-hazardous fluids. He
noted that Class VI certification is for injection of carbon
dioxide for carbon sequestration purposes.
CO-CHAIR BISHOP asked what the timeline is to get Class V
certification.
MR. CROWTHER relayed his understanding that the EPA currently is
not permitting Class V wells for geothermal, but SB 69 does
authorize the Alaska Oil and Gas Conservation Commission (AOGCC)
to investigate it in the event that the EPA provides that
authorization in the future. He said he didn't know the
timeframes for other Class V permits, but the EPA has the
ability to issue the permits directly to the applicant without
the state assuming primacy. Geothermal wells are not complex and
should not take the 2-3 years that it can take for the EPA to
issue a permit for a Class VI well.
3:56:56 PM
CO-CHAIR GIESSEL asked the likelihood that the geothermal fluids
would contain minerals.
DR. LEPAIN replied it's a possibility, depending on the rocks
that the fluid comes from. He noted that lithium has been found
in some of the produced geothermal fluids in Nevada.
CO-CHAIR GIESSEL asked whether lithium is considered a hazardous
substance.
DR. LEPAIN replied that it would depend on the concentration. He
deferred to Mr. Crowther to discuss how that would affect the
regulations for the wells.
MR. CROWTHER said he'd follow up with the exact specifications
for the different classes of wells, but DNR's understanding is
that mineral concentrations that typically cycle in geothermal
systems fit within Class V. Most geothermal water is saline
brine with trace elements.
3:59:21 PM
DR. LEPAIN referenced the graphic on slide 4 and advised that if
there are hot dry rocks at depth, water can be injected and
circulated through those rocks then produced some distance away
for use in a power plant. The cooled water can then be
reinjected some distance from the production hole and the
process can be repeated. The fluid doesn't have to be hot but
hot rocks are a necessity.
DR. LEPAIN advanced to slide 5, "Heat Flow in Alaska." It shows
the color-coded natural heat flow from the earth superimposed on
a map of the state. He explained that the earth is a layered
system that has radioactive minerals at depth that generate heat
as they decay. He acknowledged that the map conveys the
inaccurate impression that every hole that's dug will result in
an elevated heat flow. He added that it does correctly convey
that much of the state has slightly elevated heat flow.
Importantly, the white symbols that run in a belt from the
Seward Peninsula to Circle and Central reflect geothermal
springs. He highlighted that of the 97 geothermal sites
scattered throughout the state, there was advanced understanding
of the system in just five of those sites. These are the
Makushin Volcano, Akutan, Spur, Pilgrim, and Chena. Only Chena
is producing. Little is known about the other 92 sites scattered
across the state, but widespread geothermal potential is
suggested.
4:02:49 PM
DR. LEPAIN advanced to the chart on slide 6, "Geothermal
Gradients." He explained that he provided this depth temperature
plot for reference. It shows that at the Makushin Volcano, the
temperature of the water at 2000 feet is a little warmer than
380 degrees Fahrenheit. It is a high temperature system. By
comparison, the temperature at Chena is a little more than 160
degrees Fahrenheit at a depth of 1000 feet. He underscored that
little is known about the other 92 spots and where they fit in
this depth temperature space.
4:04:00 PM
DR. LEPAIN advanced to slide 7, "Geothermal Resource Quality,"
and discussed the following:
Generation capacity per unit cost depends on several
geologic and economic factors:
• Temperature hotter is better
• Flow rate higher flow rates are
better
• Reservoir framework uniform porosity
better than fractures
• Recharge partially natural
better than all
artificial
• Depth shallower is less
expensive, thus
better
• Location, location? relative to
population,
transmission system,
development costs...
CO-CHAIR BISHOP commented that he could envision several
villages tied together to take advantage of one geothermal site.
4:06:22 PM
DR. LEPAIN advanced to slide 8 and spoke to the following
summary:
INTRODUCTION TO GEOTHERMAL RESOURCES
• Geothermal heat, where technically and economically
accessible, is an excellent form of sustainable
energy
• Hydrothermal systems are the most common form of
energy extraction from geothermal heat
• Complex geologic parameters necessary for a viable
geothermal resource, all present at one location, is
rare
• Alaska contains several potential geothermal
resources
• New technologies that will help expand geothermal
development into less favorable geology are on the
horizon
MR. CROWTHER advised that Mr. Huber was online to clarify the
interaction between Class V and the requirements for permitting
wells for geothermal.
4:08:07 PM
BRETT HUBER, Chair, Alaska Oil and Gas Conservation Commission,
Anchorage, Alaska, stated that Class V is only necessary for the
injection portion of the wells. AOGCC currently has the
authority to permit to drill for exploratory wells, delineation
wells, and stratigraphy wells. Statute directs that the
turnaround time for those permits is to be as expedient as
practicable. In practice this translates to turnarounds in about
two weeks.
MR. CROWTHER advised that the supplemental information he
mentioned earlier begin on slide 29, "Supplemental Information."
4:09:09 PM
At ease
4:09:41 PM
CO-CHAIR BISHOP reconvened the meeting.
4:09:55 PM
DR. LEPAIN directed attention to the map on slide 30,
"Geothermal Systems of Alaska." It shows two broadly classed
geothermal systems: granite-related systems and volcano-related
systems. The latter are located in the Aleutian arc, up the
Alaskan Peninsula, and along the west side of the Cook Inlet
basin. Three granite-related systems have been identified: 1)
the east-west system that trends from the Seward Peninsula to
the hot springs at Circle and Central, 2) the Southwest system
that runs from Tatawiksuk in the northeast to Ophr, and 3) the
Southeast system. There are large granitic bodies that have been
intruded at 3000 to 5000 feet up into shallower crustal depths,
some of which are on the surface. These systems are up to 100
million years old. They've been cooling for a long time and are
still extremely hot.
The volcano-related systems stem from the Pacific crust
subducting under Southcentral Alaska. This generates magma that
rises and creates volcanoes. He advised that the next few slides
provide a closer look at each area.
4:12:33 PM
DR. LEPAIN advanced to slide 31 that identifies the geothermal
systems in the Fairbanks region. Each site is classified as high
temperature hot spring, hot spring, or warm spring. This region
has quite a few warm and hot springs, but no high temperature
hot spring. These sites are widespread and all are granite-
related. Many are off grid but have villages close by.
DR. LEPAIN advanced to slide 32 that identifies the geothermal
systems on the Seward Peninsula. He identified Pilgrim Hot
Springs, the high temperature hot spring at Serpentine, and hot
springs at Lava Creek, Koyuk, Golovin, Elim, Nome, and Kotzebue.
With the exception of Pilgrim, not much is known about these
systems.
DR. LEPAIN advanced to slide 33 which identifies the volcano-
related systems along the Alaska Peninsula and the eastern part
of the Aleutian chain. He identified the Makushin Volcano and
the high-temperature hot springs at Hot Springs Cove, Partov
Cove, and Akutan. Makushin is in the process of being developed
and work has been done at Akutan, but it's not being developed.
These systems are widely distributed along the chain and up into
the upper peninsula, but not much is known about most of them.
4:15:07 PM
DR. LEPAIN advanced to slide 34 which shows geothermal resources
in Southeast Alaska. There are high-temperature hot springs at
Bailey Bay and Tenakee Inlet, and a number of warm and hot
springs are scattered throughout the region. They are all
granite-related systems, and not much is known about them other
than the temperature and flow rate of the water coming from the
spring, and perhaps the chemistry of the water.
DR. LEPAIN underscored how widespread the geothermal resource
potential is in the state and how little is known about it.
4:16:26 PM
CO-CHAIR BISHOP asked if he had more details on what Nevada has
been doing to produce power from geothermal resources.
DR. LEPAIN offered to follow up with details for Nevada. He
noted that California, Idaho, and potentially Utah have been
producing power with geothermal resources.
4:17:38 PM
SENATOR DUNBAR commented that it seems that the geothermal
resources generally are where the population isn't. He noted
that the largest gap was in the Anchorage and MatSu area. He
asked three questions: 1) whether the development on the
Aleutians was associated with the fish processing plant, 2)
whether mines were exploring geothermal as a potential power
source, and 3) what the land ownership looks like and whether
access to the resource would be difficult on federal land.
DR. LEPAIN responded that he knows that some of the sites in the
central belt from the Seward Peninsula to the Canadian border
are on federal land. He acknowledged that he didn't know how
difficult it might be to develop those sites.
SENATOR DUNBAR asked for information about industrial users like
mines and fish processors.
DR. LEPAIN said he understands that the project underway at
Makushin Volcano will provide power to the City of Unalaska and
the fish processor in the area. He mentioned the slow
development of the Donlin Gold Mine and posited that one
geothermal plant in that area could be a game changer.
4:20:41 PM
MR. CROWTHER thanked the committee and advised that DNR would
give a detailed review of the bill at a future meeting.
CO-CHAIR BISHOP held SB 69 in committee.
4:21:05 PM
At ease
^PRESENTATION(S): ALASKA'S GEOTHERMAL RESOURCES
PRESENTATION(S): ALASKA'S GEOTHERMAL RESOURCES
4:22:32 PM
CO-CHAIR BISHOP reconvened the meeting and announced a
presentation on Alaska's geothermal resources by Bernie Karl.
4:22:38 PM
BERNIE KARL, President, Chena Power, Fairbanks, Alaska stated
that he was on a mission to make the world a better place to
live by harnessing geothermal resources to produce power instead
of burning oil.
4:25:13 PM
MR. KARL played the following video that provides information
about the opportunities for geothermal in Alaska:
https://www.alaskageothermal.info/video.
MR. KARL stated that while there is a lot that isn't known about
geothermal in Alaska, taking a water sample will show the
geochemistry without drilling. He opined that it would be a good
project for summer interns at the university to take samples of
every untested hot spring in the state.
4:32:04 PM
MR. KARL skipped to slide 4, "Three Major Regions with Alaskan
Geothermal Potential." He explained that the heat flow map was
part of heat flow mapping for the entire US.
MR. KARL displayed slide 5, "Alaskan geothermal resources, How
Much?" He answered the question saying there's enough geothermal
in Alaska to run the world. He relayed that there are 60
volcanoes on the Ring of Fire and water samples should be
collected from each one.
MR. KARL turned his attention to Chena Hot Springs and spoke to
slides 6-8 that read as follows:
Chena Hot Spring's Low-Temperature, Electricity
Generation Is the Perfect Solution for the Central
Alaska Region.
Many low-temperature, but high flow rate hot springs,
like CHS are spread out across central Alaska.
Low-temperature geothermal electricity generation was
not thought possible at less than 194°F, CHS moved the
temperature to less than 167°C and 'opened the door'
for Central Alaska geothermal development.
Chena Hot Spring's binary, geothermal power plant,
operating since 2006, at a nominal 350 MWe, has
generated clean, carbon-free renewable energy for
sustainable operations
4:34:12 PM
Slide 7
Chena Hot Springs Pioneered Geothermal, Low-
Temperature, Electricity Generation and Changed the
World
Geothermal Enables: fresh food greenhouses, recycling,
Clean H2, and balneology.
4:38:06 PM
Slide 8
South-Eastern Alaska Region Will Also Benefit from
Chena Hot Springs Low-Temperature Geothermal System
In addition to Chena Hot Spring's binary, geothermal
power plant for electricity, geothermal waters are
further employed to heat buildings, outdoor walkways
and grow food year-round and, cool the icehouse. This
is called direct use of geothermal energy.
Heat flow estimates in the SE region of Alaska (except
Juneau) might be able to generate electricity, but
certainly SE cities would benefit from direct usage.
4:37:36 PM
MR. KARL advanced to slide 9, "Aleutian Islands Have an Enormous
Untapped Geothermal Potential," and spoke to the joint venture
between Ounalashka Corporation and Chena Power (OCCP):
Alaska's Aleutian Islands are the largest island arc
volcanic center in the World. Total Aleutian volcanic
energy was estimated as 1022 joules. How to tap into
this enormous source of energy for Alaska's benefit?
In 2016, Makushin scored first on a DOE-EERE-GTO
funded report assessing island arc geothermal-
potential, favorability? list of over 59 Aleutian
volcanoes near population centers.
Makushin volcano is estimated at 3x1019 joules is the
key.
MR. KARL highlighted the signed power purchase agreement between
OCCP and the City of Unalaska to purchase 30 megawatts of power
at 16.3 cents. Today that power costs 45 cents. He expressed
optimism that the price would eventually be as low as 8 cents.
He noted that this site has 7000 acres of patented ground and
the employees own the resource. He described Unalaska as a
perfect location for geothermal. The project geophysicist told
him that 450 megawatts of power could be generated from the 7000
acres.
4:41:17 PM
MR. KARL advanced to slide 10, "Unalaska is Strategically
Located in the Aleutian Chain." He described the location as
perfect. He highlighted that Unalaska is the largest deep water
fishing port in the US and Alaska's only international port. He
said the fishing industry is a heavy energy consumer and
geothermal can meet this need.
MR. KARL displayed slide 11, "What is the Makushin Geothermal
Project?" The picture on the lower left is of the Makushin
Valley looking west and the topography map on lower right shows
that the power plant site is about 14 miles from the City of
Unalaska. He continued to describe the project speaking to the
following:
Makushin Geothermal Project (MGP) is a 100% renewable
energy 30MWe geothermal power system:
• Powerplant utility corridor and three
production/injection wells,
• Modular geothermal plant with multiple, cascading
OEC units,
• Power transmission/communications lines on land and
underwater connection to City of Unalaska's power
grid, and
• Automated controls and integration scheme with power
grid.
4:45:29 PM
MR. KARL continued to slide 12, "OCCP Aleutian Vision Summary,"
and spoke of the following:
• Starts on Unalaska Island and Makushin Volcano's
thermal energy.
• Next, the larger Makushin Geothermal Resource (MGR)
and then the complete Volcano itself.
• Next, a move to Adak island to replace diesels.
• Finally, Aleutian volcanoes, more than any other
place on Earth, are tapped for large-scale,
industrial businesses such as green H2 production
and green ore smelting.
Eventually, eleven commercial business ventures are
visioned with numerous OCCP-1 (30MWe) size power
plants or much larger for heavy-use offtakers for a
total of over 1 GW of capacity and attracting almost
$13B in power plant and facilities investment capital.
4:51:22 PM
SENATOR KAUFMAN asked what mechanism is used at Chena to convert
heat into electricity.
MR. KARL replied that they use an organic Rankine cycle, which
is the opposite of a refrigeration cycle. The air will provide
the cooling and the water will be reinjected at temperatures
above 180 degrees. He highlighted that Ormat was chosen as the
engineering, procurement, construction (EPC) contractor for the
project.
4:57:01 PM
SENATOR DUNBAR asked him to discuss the permitting and how long
it's taken.
MR. KARL answered that it took 7 months to get the permits from
the Army Corps of Engineers and a year to get the permit from
the Alaska Department of Fish and Game (ADF&G).
SENATOR DUNBAR asked about EPA and DEC.
MR. KARL said DEC permitted the camp for drinking water and
there were no problems. He anticipated some difficulty with EPA
because geothermal drilling is now linked to oil and gas. He
said there is no oil and gas potential, but they still have to
go through the process.
4:59:45 PM
CO-CHAIR GIESSEL recalled that Ormat tried and abandoned
geothermal drilling in other locations.
MR. KARL said that's right; Ormat tried and abandoned drilling
at Mount Spur. He shared his belief that Mount Spur still had a
lot of potential.
CO-CHAIR BISHOP asked if he'd thought about hydrogen production.
MR. KARL said yes; OCCP applied to become a hydrogen hub and
they're still working on that.
CO-CHAIR BISHOP thanked Mr. Karl for the presentation.
5:03:07 PM
There being no further business to come before the committee,
Co-Chair Bishop adjourned the Senate Resources Standing
Committee meeting at 5:03 p.m.