Geothermal energy represents one of the most feasible resources in the green transition, and closed-loop geothermal systems (CLGS) are a solution for universalizing the use of this type of energy, according to the experts of the Oil and Gas Employers’ Federation (FPPG).
They explained, at a meeting with the press, that the closed-loop technology, already used in Canada, Germany and the USA, presents significant key advantages compared to the conventional system, among which are the absence of fracturing, the possibility of exploiting geothermal energy regardless of the availability of hot water aquifers near the cogeneration plant, the lack of risks related to induced seismicity, the absence of any elements subject to corrosion/erosion/deposition and the direct connection between cities where there is demand and hot water resources, according to Agerpres.
The closed circuit system involves deep drilling and the introduction of pipes made of a special, heat-conducting material, into the ground, near the igneous rock layer, where temperatures of approximately 300 degrees are recorded. Water from its own source is introduced into the thermoconductive pipes, water that will capture the heat of the rocks. The water returns to the surface through a natural thermosiphon and reaches the cogeneration plant, where both electricity and thermal energy are produced.
“The technology has just emerged and has not yet started to be used in Romania. (…) The oil and gas companies operating in Romania have the necessary capacity to ensure the transfer of drilling technology to implement and use the closed circuit technology. The footprint is very small, it is not taken from the agricultural circuit, because it has to be done in areas where there is industrial activity. There is no fracking, it does not depend on the season. It is a cycle that works 24 hours a week, without problems “, explained the FPPG experts.
According to them, in Canada, the test loop has been in operation since 2019, while in Germany drilling operations are still ongoing.
Romania is among the top five European countries with geothermal energy potential, currently being explored in 24 sites, but has a much larger number of underground sources of geothermal water.
The FPPG experts pointed out that several locations in western Romania, close to the border with Hungary, present suitable geological conditions for the development of geothermal projects and for the application of closed circuit heat capture systems. Several cities in Romania are already interested in exploring and using geothermal energy for heating residential areas, such as Arad, Timisoara, Oradea.
A problem in the implementation of such projects would be the small number of very large drilling installations that can do such works, at the European level there are only a little over 15 such installations, which is why “there is a fight between countries to reserve them “.
The initial cost of such an installation is very high, at least 100 million euros for a loop, but subsequently the operational costs are very low.
However, in order to be able to use these geothermal resources, a series of legislative changes are necessary and, among the recommendations made by the FPPG representatives to the authorities, is the amendment of the Mining Law.
“Here we believe that it can be made more efficient the fastest. There are only a few additions to encourage these significant long-term investments. We will see to what extent the issue of subsidies can also be raised. But we, in the first phase, just want to we see the willingness to dialogue. We are in a situation where we want to see how Romanians could benefit as quickly as possible from this resource, which will obviously reduce their bills, which many of them consider high during the day as of today. We need to extend to 30 years the periods provided by law for drilling permits.(…) We should get closer to the way the oil and gas industry is regulated, being much more similar to ea.(…) On the cost component, they will obviously be borne by the private sector and we will see to what extent this matter will matter in all the regulation and fiscal aspects of a law that could regulate it the option of revising Law 123, but from our point of view it is not appropriate. We are waiting to see if the Romanian state considers it more appropriate. We will be able to take this into account as well, but from our point of view it is very clear, following the analysis of the entire industry, that the Mining Law 85/2003 would be the fastest way to reach the development of these projects”, stated the experts of the Federation of Oil and Gas.
They pointed out that, at the beginning of this year, the European Parliament voted in favor of the Resolution for the establishment of a European strategy on geothermal energy, and the Hungarian presidency puts a lot of emphasis on it.
“We believe that, in addition to the positive examples we have discussed with Germany, Canada and the United States, there is an international context that allows a more fruitful dialogue for this regulation and we hope that we, as Romanians, will be part of this European dialogue about how we can benefit from this resource throughout the continent, which seems to me to be one of the most feasible in the green transition. A large part of the green transition is idealistic, we believe that there are much more real foundations for a proper transition and that’s why we would put the money on the table for that. What we really need is a clear definition, a simplified authorization process…,” concluded one of the FPPG experts.
According to Federation data, as part of its dry and hot rock geothermal project, one of Romania’s most important oil and gas companies is currently collecting subsurface data in western Romania, with plans to launch the first loop pilot drilling at the end of the year 2025 and in the first quarter of 2026.
Currently, the exploration and exploitation of mineral resources, including geothermal energy, is regulated by the Mining Law no. 85/2003. The mineral resources regulated by this law include, among others, geothermal waters and related gases, as well as therapeutic mineral waters and residual mineral residues.
“The definition of geothermal heat is a critical issue for the proper regulation of the sector. In this context, it is necessary for legislators to decide whether geothermal energy falls within the definition of ‘mineral resources’ or whether it should be considered a specific feature of the earth. This distinction is fundamental both for the establishment of the property regime and for the establishment of a regulatory framework, authorization and adequate monitoring of the operations related to the capture of geothermal heat. Based on the analysis of the legislation in force, it can be concluded that any new attempt to regulate the definition of geothermal heat will require the development of rules that comply with the definition used by the Mining Law no. 85/2003. In addition, the National Agency for Mineral Resources (ANRM) is the authority with in-depth experience in the regulation of geothermal energy and, in particular, regarding regulating the involved underground drilling operations. At the same time, the energy of the earth cannot be included in the definition of oil or oil reserves. Furthermore, while in the case of crude oil, the regulated resource can be measured in quantitative terms, this is not applicable to geothermal heat. The latter cannot be determined in quantitative terms, because this resource is not extracted from the underground, but only used as a recirculation system,” says FPPG.