The value of heat and geothermal waters

Banks, D. (2023) The value of heat and geothermal waters. Quarterly Journal of Engineering Geology and Hydrogeology, 56(1), 2022-064. (doi: 10.1144/qjegh2022-064)

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Abstract

Evaluation of proposed geothermal projects often requires a value to be assigned to waterborne geothermal heat or geothermal fluids. A methodology for valuing low-enthalpy warm fluids (<90°C) is presented: the method uses a reference price for sale of waterborne district heating at a relatively high temperature (in this paper, we have assumed 70°C), and then discounts this price by the value of electricity that must be expended in a heat-pump compressor to transfer heat from the source fluid to the target reference level. An alternative methodology is also presented, based on the exergy content of the geothermal fluid: this is arguably more theoretically justifiable but does not account for the real costs of running a heat pump. Compared with other sources of low-carbon environmental heat, prospecting for deeper warm geothermal fluids will be favoured when drilling costs are low and electricity prices are high; shallow cooler fluids, coupled with the use of heat pumps, are economically favourable when electricity is cheap and drilling costs are high.

Item Type:Articles
Keywords:Geothermal, heat, electricity, economics, heat pump, exergy.
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Banks, Mr David
Authors: Banks, D.
Subjects:H Social Sciences > HB Economic Theory
Q Science > QC Physics
Q Science > QE Geology
College/School:College of Science and Engineering > School of Engineering > Systems Power and Energy
Journal Name:Quarterly Journal of Engineering Geology and Hydrogeology
Publisher:Geological Society
ISSN:1470-9236
ISSN (Online):2041-4803
Published Online:18 October 2022
Copyright Holders:Copyright © 2022 Geological Society
First Published:First published in Quarterly Journal of Engineering Geology and Hydrogeology 56(1):qjegh2022-064
Publisher Policy:Reproduced in accordance with the publisher copyright policy

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