|Ecolog is operating in a very intensive market. Its unique combination of in-house capabilities, experience and decision making speed enable the company to leap into major opportunities that go beyond its core sector, which is service solutions and supply chain for a wide range of public and commercial customers.|
Being a flexible company combined with the entrepreneurial mind-set of its founder, Ecolog is driven to continuously search for new opportunities as a part of its investment diversification strategy. Moreover, creating multidimensional and sustainable values is part of our company vision and energy, more specifically renewable energy offers precisely multifaceted potentials for development. With this in mind, in our pursuit for opportunities in this area it was rather simple to select Turkey among the first priority locations. Not only because of our existing presence with other operations in the country, but more so due to the overall energy market outlook of Turkey.
The endeavor began. It didn’t take too long until we identified a serious opportunity related to Geothermal resources. A project with a good economic potential that is also environmentally sustainable. Project Geo2E was conceived to manage the development of the project to the next stages.
|The Project Geo2E is the first energy project of Ecolog International in the energy sector in Turkey. It started in the end of 2011 with the acquisition of a 42 geothermal exploration licenses, which followed after the preliminary study made to determine the potential of the fields. In parallel a designated project team was formed in Istanbul. In addition, we identified and engaged the most suitable exploration companies and experts to collaborate during our project.|
In the exploration phase, the fields were further selected and then consolidated into 12 licenses, covering a total area of 34,685 hectares, with potential water temperature ranging from above 80 oC to 270 ºC. The estimated power generation capacity is 750 MWe, which is more than 30% of the total estimated geothermal resources potential of Turkey. The fields are located in the Western part of Turkey, or the Menderez and Gediz Graben.
Currently, phase 1- Preliminary Study and phase 2 – Exploration have been completed, and we are finalizing the next phase program, Drilling. In parallel, we continue to further refine the business models and maximize the project business potential.
Multidimensional values, multiple uses
|The main idea behind Project Geo2E is to develop the potential of the geothermal resources that are covered with the licenses we have acquired, and with this participate in the response to the growing energy demand in Turkey, but also in response to environmental protection requirements and the need for sustainable development.|
| geothermal energy will be used for|
| generating electricity|
| low cost heat for greenhouses,|
|heating facilities, thermal tourism|
|The increase in demand has given rise to the long-term investments made by the private sector. The Turkish energy sector have registered a rapid growth after the liberalization of the energy market. In line with the implementation of regulations and the high increase in demand, the electricity market enlarged its capacity to attract investments to the market.|
The Turkish government encourages investors to implement energy projects in Turkey with new incentives on renewable energy. This ensures that the government’s feed-in tariff will accelerate investment projects in the coming years.
|Turkey has become one of the fastest growing energy markets in the world in parallel to its economic growth registered in the last eight years and is rapidly gaining a competitive structure.|
The Turkish Electricity Transmission Company estimates that Turkey’s demand for electricity will increase at an annual rate of six to eight percent.
The growing energy demand in Turkey is one of the significant factors along with market liberalization and the country’s potential role as an energy terminal in its region.
Hottest Geothermal Regions
Source | US Geological Survey
Heat Map of Turkey
Potential for Geothermal Energy Generation in Turkey
- Forecasts 6-8 percent annual growth in energy demand until 2020, expecting to add 50,000 MW to the grid.
- Hottest market in Europe for geothermal, 7th most promising
country in the world.
- 163 MW of installed capacity for geothermal power
- 800 MW of proven geothermal capacity for electricity
- 2000 MW total estimated potential capacity.
- +550 MW of installed geothermal capacity in Turkey by 2015.
120 energy investment projects by 2020 with the focus on geothermal energy.
- Potential Economic activity by Reaching the 2015 Tragets is
32 Bill USD/year.
(4 Billion kWh)
|1,6 billion USD|
|1,2 billion USD|
(5 million m2)
|600 million USD|
|Drying||500.000 tons/year||120 million USD|
|400 thermal facility|
|1 billion USD|
|Cooling||50.000 res. Equiv.||250 million USD|
|Total: 4,77 billion USD|
Investment amounts for fulfilling the 2015 Govt. targets
Project Process and Status of Development
Overview of Licenses
Field Locations Map
The Project Development and Progress
|From the very beginning there was a clear goal to base our project development on the best known international practices especially regarding the scientific components of the exploration process, and the consequent stages as well. Hence our development process is structured in six main phases, and each phase follows a specific program which is constantly adjusted based on the findings. The first consisted of identifying the site with a promising geothermal resource, followed with the second phase or the analysis of the subsoil by means of scientific prospecting in order to evaluate its features.||The next phase then involves deep exploration. And if the indications provided by scientific studies are confirmed, the project proceeds with the Field Development phase through production wells and consequently building of the power plant units.|
The studies were conducted by our in-house team, Erdwerk, WesternGeco, Schlumberger, FNC Petrol, Sismik-A, Enerson Companyö Prof.Dr. Erdin Bozkurt, Prof.Dr. Mahmut Parlaktuna, Prof.Dr. Nilgün Güleç, and Prof.Dr. Nurkan Karahanoğlu.
Phase 1. Preliminary Study
|In order to identify potential obstacles that could slow down the development later on, we considered a number of factors during the preliminary study phase regarding the 42 geothermal licenses acquired at the beginning. During this phase we engaged experienced geothermal consultants to assess the information and to design the program for the exploration phase as effectively as possible. In summary, the preliminary study has covered the following areas:|
- the power market and possible power purchase possibilities such the feed in tariff
- infrastructure issues (roads, water, communication, transmission)
- resource ownership issues and relevant legal framework environmental and social issues
- institutional and regulatory frameworks
- issues relating to political and financial stability and
- information from available literature on the resource itself, including geological, hydrological or hot spring thermal data and historic exploration data from the
surrounding areas of interest
The study resulted with a further selection and elimination of the initial number of fields. Hence, the final selection included: 12 exploration license, with fields total area of 34,685 hectares.
|Key indicators at existing explorations or operations in the Gediz and Büyük Menderes Area|
|Shallowest drilled well with over 200 ºC thermal source||540 m||364 m|
|Deepest drilled well with over 200 ºC thermal sources||3200 m||3000 m|
|Highest thermal source temperature||287 ºC||237 ºC|
|Total installed power capacity||124 MW||88 MW|
|Total number of wells with over 130 ºC||41||32|
The findings of the Exploration surveys conducted at our geothermal fields are clearly showing a very close match with the historical data reviewed during the Preliminary Study for the Gediz and Büyük Menderes Area, respectively for locations that are in a very close proximity to our fields.
|For each field the following surveying techniques where applied:|
- Gathering local knowledge
- Locating active geothermal surface features
- Assessing surface geology
- Electrical conductivity
- Flow rate of fluids from active features
- Soil sampling
- Electrical resistivity
- Vertical Electrical Sounding (VES)
- Magnetotelluric (MT)
- Temperature gradient drilling
- 3D Modeling
|Following the studies, detailed report for each aspect and each license was compiled, including: VES Studies, MT studies, corresponding 3D Models, geological, geochemical and hydrogeological assessments and interpretations, gradient drillings report, and final 3D Models interpretation and proposal for potential well locations for each field.|
Geological Evaluation at Atburgzai – Views from matrix supported marble conglomerate. The marble clasts are angular to semi rounded (left image) and may reach up to block size (right image). The clasts are cemented by sandy muddy carbonaceous material.
Present Status and Next Phase
|With the final report in hand, the Exploration phase is now completed.|
The especially encouraging fact is that, all the reports and interpretations indicate that our fields contain great potential of geothermal reservoirs which is supported by both geophysical and geological experts with solid scientific indicators.
After the final reports conclusions, we have further refined the drilling location mapping, and based on the drilling specific locations the corresponding Well Designs and Engineering. In parallel, we are working closely with MARSH Insurance, and Munich RE, respectively, to find appropriate Drilling and Exploration Risk Management solution aiming to further mitigate the project development risk.
The Next phase, or Drilling is planned to start with the completion of the risk management solution, or by the beginning of 2014.
3D View of the structural model with faults and top basement and the prominent strike slip fault.