unfc-2009 geothermal specifications deck - iga-unece.pdf · unfc-2009 geothermal specifications...

IGA Resources and Reserves Committee

UNECE Task Force on the Application of the UNFC-2009 to Renewable Energy

1October 2017

Application of UNFC-2009 to

Geothermal Energy Resources

Presented by Paolo Conti on behalf of the Task Force on

the Application of the UNFC-2009 to Renewable Energy and

the IGA Resources and Reserves Committee

Evento ATI/UGI “La Geotermia”Milano, martedì 24/10/2017



2October 2017

Why Classification?

▪ The number of Geothermal Energy Projects is growing

globally (albeit from a small base).

▪ Each Geothermal Energy Project only happens if there is a

business case for investors to finance the development.

▪ A business case demands an objective evaluation of the

maturity, value and confidence of the Geothermal Energy

Resource estimate (risk assessment).

▪ The UNFC-2009 provides a universally recognized system

for objective reporting of energy resources.

▪ Its adoption for Geothermal Energy Projects should improve

investor confidence.



6October 2017

United Nations Framework Classification for Fossil Energy

and Mineral Reserves and Resources 2009 (UNFC-2009)

ECE ENERGY SERIES No. 42

What is UNFC-2009?



7October 2017

▪ Create a universal-accepted, unique and plain

framework in resource classifications.

▪ Create a project-based classification framework to

represent in a uniform way the maturity and

uncertainty of the (future) “extraction” project, reporting

the related resource/energy quantities.

▪ Users/stakeholders:

– Investors

– Governments

– Industrial operators

– Non-governmental institutions

WHY UNFC-2009?



8October 2017

The resource classification process consists of:

1. Defining a Project, or Projects, associated with a

Geothermal Energy Source,

2. Estimating the quantities of energy that can be

recovered and delivered as Geothermal Energy

Products by the Project, including any regenerative

potential, and

3. Classifying the Geothermal Energy Resource

based on the criteria defined by the E, F and G

categories.

How does it work?



9October 2017

‘Project-Based’ System

A project is the level

at which a decision is

made on whether or

not to proceed (i.e.

spend money or not.)

Oil/Gas project

Uranium/Coal project



10October 2017

A Project is the link between the Renewable Energy Source

and marketable quantities of Energy Products.

A Project provides the basis for economic evaluation and

decision-making.

Classified quantities

UNFC for ‘Renewables’



12October 2017

The Project based

classification

▪ Control volume

approach

▪ Energy and mass

balance

▪ Time-integral

evaluation

Control

Volume

Points of

evaluation

Reference

point

Fluxes at the boundary


Geothermal

energy

source

Geothermal

energy

product



13October 2017

Project Resources

▪ The estimated resources can be visualized in future

production profiles over the disclosed lifetime of the project.

Project lifetime #1

Project lifetime #2

Project lifetime #3



14October 2017

A

B

C

Heat pump unit

COP = 3

CHP engines

ηth = 0.36

ηe = 0.44

Back-up boilers

ηth = 0.9

Groundwater

Storage

DH network

National electrical

grid

Ep,in = 165 TJ

(45.9 GWh)

Ep,in = 470 TJ

(130.5 GWh)

Eth,CHP = 135 TJ

(37.5 GWh)

Eth,b = 149 TJ

(41.3 GWh)

Eel,CHP = 207 TJ

(57.4 GWh)

Eth,HP = 266 TJ

(74 GWh)

Eth,HP = 550 TJ

(152.8 GWh)

Eth,HP = 175 TJ

(49.4 GWh)

Eel,HP = 89 TJ

(24.7 GWh)

Primary energy

Eel,,pump = 13 TJ

(3.7 GWh)

Thermal energy

Electrical energy

*..Quantities shown are based upon a reference year of operation (repeated for 20

years). The letters A,B, and C indicate the four points of evaluation for energy

quantities. The Reference Point for the evaluation of the Geothermal Energy

Resources is highlighted in red (point A).

Reference point




15October 2017

“United Nations Framework Classification for Fossil

Energy and Mineral Reserves and Resources”

▪ Generic, principles-based classification system

– Now applicable to solid minerals, fossil energy, renewables

(geothermal energy) and injection projects

– NOT a quantification system!

▪ Based on three criteria

– ‘E axis’ (degree of favorability of social and economic conditions

for establishing commercial viability of project)

– ‘F axis’ (maturity of studies and commitments necessary to

implement project)

– ‘G axis’ (level of confidence in the estimate of reported

quantities and potentially recoverable quantities)

What is UNFC-2009?



16October 2017

Actual definition

▪ ‘E axis’ (degree of favorability

of social and economic

conditions for establishing

commercial viability of project)

▪ ‘F axis’ (maturity of studies

and commitments necessary to

implement project)

▪ ‘G axis’ (level of confidence in

the estimate of reported

quantities and potentially

recoverable quantities)

Misleading simplifications

▪ ‘E axis’: Economic viability

▪ ‘F axis’: Feasibility of the

project (i.e. a of the maturity of

the technology involved in the

project)

▪ ‘G axis’: Geological

knowledge (i.e. level of

knowledge of the underground)

BE CAREFUL!

What is UNFC-2009?



17October 2017

F axis

categories

E axis

categories

G axis

categories

What is UNFC-2009?



18October 2017

Category Definition

E1 Extraction and sale has

been confirmed to be

economically viable.

Category Definition

F1 Feasibility of extraction by

a defined development

project or mining

operation has been

confirmed.

Category Definition

G1 Quantities associated

with a known deposit that

can be estimated with a

high level of confidence.

UNFC Class: 111

What is UNFC-2009?



19October 2017

ExtractedSales Production

Non-sales Production

ClassCategories

E F G

Future recovery by commercial

development projects or mining

operations

Commercial Projects 1 1 1, 2, 3

Potential future recovery by

contingent development projects

or mining operations

Potentially Commercial Projects 2 2 1, 2, 3

Non-Commercial Projects 3 2 1, 2, 3

Additional quantities in place associated with known deposits 3 4 1, 2, 3

Potential future recovery by

successful exploration activitiesExploration Projects 3 3 4

Additional quantities in place associated with potential deposits 3 4 4

19

UNFC–2009: 2D representation

What is UNFC-2009?



20October 2017

Alignment of systems

(schematic)

Sales Production

Non-sales Production

Class

Commercial

Projects

Potentially Commercial

Projects

Non-Commercial

Projects

Additional quantities in place

Exploration

Projects

Additional quantities in place

To

tal

co

mm

od

ity i

nit

iall

y i

n p

lac

e

Production

Class

Reserves

Contingent Resources

Unrecoverable

Prospective Resources

Unrecoverable

UNFC-2009 PRMS CRIRSCO

Extracted

Class

Mineral Reserves

Mineral Resources

Not reported

Not reported

Exploration

Results

Not reported



21October 2017

UNFC-2009 Classification Framework and Category Definitions

Generic Specifications

Bridging

Document

Petroleum

Specifications

PRMS

Bridging

Document

Solid Mineral

Specifications

CRIRSCO

Generic

guidelines

Bridging

Document

Other Aligned

Systems

Renewable

energy

specifications

Injection

projects

Nuclear Fuel

Resources

Hydro

specificationsWind

specifications

Solar

specifications

Geothermal

specificationsBio-energy

specifications

UNFC-2009 Hierarchy



22October 2017

Geothermal Specifications linked to Renewable

Specifications and Generic Specifications

UNFC-2009 Hierarchy



23October 2017

Name

Country of

residence Affiliation

Gioia Falcone Germany TU Claustal (representing UNECE and IGA R&R)

Miklos Antics France GPC IP/Geofluid (endorsed by EGEC)

Roy Baria UK Mil-Tech UK Ltd.

Larry Bayrante Philippines Energy Development Corporation

Paolo Conti Italy University of Pisa (endorsed by UGI)

Malcolm Grant New Zealand MAGAK (endorsed by NZGA)

Robert Hogarth Australia Hogarth Energy Resources

Egill Juliusson Iceland Landsvirkjun

Harmen F. Mijnlieff Netherlands TNO (endorsed by Dutch Geothermal Platform)

Annamaria Nádor Hungary Geological and Geophysical Institute of Hungary

Greg Ussher New Zealand Jacobs

Kate Young USA National Renewable Energy Laboratory

(*)

(*) Now at Cranfield University, UK

Observers: Graeme Beardsmore, Chair, IGA R&RC

Horst Rüter, Director, IGA Service GmbH

Geospec Working Group



24October 2017

Example: allied definitions

Geothermal Specifications

-

Geothermal Energy Source

Geothermal Energy Product

Geothermal Energy Resources

Project

Reference point

Project lifetime

Renewable Specifications

(non-editable)

Renewable energy

Renewable Energy Source

Renewable Energy Product

Renewable Energy Resources

Project

Reference point

Project lifetime

Geospec Working Group



25October 2017

From:

«Specifications for the application of the United Nations Framework Classification for

Fossil Energy and Mineral Reserves and Resources 2009 (UNFC-2009) to

Geothermal Energy Resources”

Geothermal specifications



26October 2017

From:

«Specifications for the application of the United Nations Framework Classification for

Fossil Energy and Mineral Reserves and Resources 2009 (UNFC-2009) to

Geothermal Energy Resources”

Geothermal specifications



27October 2017

An integrated approach to exploration,

quantification and classification

1. What is the geology of the geothermal system?

2. What extraction project is most appropriate?

3. How do I best quantify the Geothermal

Resource?

4. What should I consider during resource

quantification that will assist classification?

5. How do I classify my Geothermal Resource?

Look-ahead



28October 2017

Look-ahead



29October 2017

Traning, promoting, and looking for case studies

Look-ahead



30October 2017

What? How?:

definitions, evaluation approach and

methodologies (i.e. stored heat vs

energy and mass balance)

Who?: Competent person

Look-ahead



31October 2017

We look for volunteers offering case studies to:

▪ Test the Geothermal Specifications as they

are and see what can/cannot be done without

further classification guidance

▪ Define the boundaries between resources

classification and quantification.

Case studies should cover geological,

engineering, economy, social features…

Look-ahead



32October 2017

Some of the ongoing activities:

▪ On 30 Sept 2016, the Sustainable Energy Committee

requested the UNECE Expert Group on Resource

Classification (EGRC) to consider changing the name of

UNFC-2009 to reflect that it is for energy and mineral

resources and not just for fossil energy.

▪ The UNFC revision process has just started, which will

include renaming the system. The intent is for the EGRC to

issue revised system end-2018/early-2019.

▪ Accommodating Environmental and Social Considerations in

UNFC-2009

Look-ahead



33October 2017

▪ This work was only possible thanks to the significant time,

support and input of many experts and organizations around

the world. We would particularly like to acknowledge:

– Working Group members for their voluntary service

– Financial support from the Energy Sector Management Assistance

Program of the World Bank (ESMAP) and United States Department

of Energy (DoE) Geothermal Program

– In kind support from the International Renewable Energy Agency

(IRENA) and the Geothermal Resource Council (GRC)

– Expert input by the International Energy Agency Geothermal

Implementing Agreement (IEA-GIA), the Geothermal Energy

Association (GEA), the European Geothermal Energy Council

(EGEC), the l’Unione Geotermica Italiana (UGI) and authors of

submissions during the public comment period

Acknowledgements



34October 2017

THANKS FOR YOUR KIND

ATTENTION!

Application of UNFC-2009 to Geothermal Energy Resources

Presented by Paolo Conti on behalf of the Task Force on the Application of the UNFC-2009 to

Renewable Energy and the IGA Resources and Reserves Committee

unfc-2009 geothermal specifications deck - iga-unece.pdf · unfc-2009 geothermal specifications...

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