GEOTHERMAL R&D

Question: What level of funding is requested and comment on recent developments in the Hot Dry Rock project.

Answer: Five million dollars is requested in FY 1987 for Hot Dry Rock geothermal energy development. Further support is anticipated through the International Energy Agency Hot Dry Rock cooperative program, under which Japan is providing $2.5 million and is assigning scientists and engineers to the Fenton Hill Hot Dry Rock project in FY 1986. In May, 1985, an underground connection was achieved at Fenton Hill which will allow recirculation of water through a large fractured reservoir. Tests thus far have indicated that the flow impedance is low and therefore favorable for proceeding with heat extraction tests. However, the heat extraction capability is not yet known and will be established by extended circulation experiments.

Question: Why do you proposed to terminate hydrothermal industrialization activities?

Answer: Prior year funding for the hydrothermal industrialization program element has supported State geothermal resource assessment studies. This program element has achieved its objective in that the States have now developed sufficient capabilities to plan and carry out any additional resource assessment activities they identify that may be necessary to meet any future requirements.

Question: What funding is proposed for magma energy extraction and how does your program differ from the FY 86 activities?

Answer: One million dollars is requested for magma energy extraction in FY 87. In FY 86, research is being carried out to develop materials and instrumentation capable of withstanding the hostile environment expected in the magma regime as well as to analyze the results of past geophysical measurments made at Long Valley, in east-central California which has been selected as the location for the next field test. In FY 87, the analyses will be completed, and drilling of an observation well for detailed studies of the magma chamber under Long Valley will begin.

Question: What is the status of the geopressured resource

program?

Answer: Geopressured program field activities are continuing at the two design wells used to study the behavior of geopressured reservoirs under extended flow conditions. The Gladys McCall well near Lake Charles, LA is operating satisfactorily. Using a newly devised scale control technique, flow rates of up to 30,000 barrels per day have been sustained for prolonged periods without indications of scale problems. The Pleasant Bayou well near Houston, TX is presently undergoing renovation to allow testing of the Electric Power Research Institute energy conversion system to begin in FY 87. A third geopressured well, the Hulin well near Lafayette, LA, which was

donated by industry for possible testing, is in standby condition pending the result of analyses of future reservoir testing needs. Research to develop mathematical models for prediction of

reservoir dynamics and to evaluate possible environmental effects of geopressured energy utilization is continuing in support of the field program.

Geothermal Loan Guaranty Program

Question: Provide a status report on this program including pending applications and follow-on loans.

Answer: The geothermal loan guaranty program was

established by Congress in 1974 and was subsequently provided with a loan guaranty authority of $500 million. In a March 1982 Federal Register notice, the Department noted that existing guaranties and pending applications exceeded the loan guaranty authority and therefore suspended applications for new projects. Since that time some of the pending applications have been approved and the rest withdrawn.

There have been several successes under this program. For example, the Northern California Power Authority (NCPA) repaid their loan early, and then without a government guaranty constructed a second power plant at The Geysers. Another success was Geothermal Food Processors, which recently paid off its loan in full.

Due to changed economic conditions which have arisen since certain of the loan guaranties were signed

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decreased oil costs three

and lower than anticipated demand for electricity projects have gone into default, of which two have been paid off by DOE in the total amount of $29 million.

Of the $500 million loan guaranty authority, $244.4 million in guaranties have been issued to date on a total of 8 projects. addition, conditional commitments to 2 projects total $99.8 million, bringing the total authority committed under this program to $344.2 million.

In

GENERAL

Question: For the record, provide the Committee with a breakdown of funding for solar and renewable programs for FY 80 through FY 87.

Answer: The following information is provided for the

record:

Electric Energy Systems

Question. Please provide the Committee with a complete breakdown of the FY 1987 request using the format contained in the FY 1986 justification material on Page 133-136 and include FY 1986 levels.

Answer. The breakdown is submitted for the record.