Project Description

Project Name

Hudson Ranch Geothermal

Location

Salton Sea, California

Challenge

Finance Large Scale Geothermal Plant

Description:

Increasing concern over climate change and energy security is driving a call for increasing use of domestically sourced renewable energy resources for the power delivered to American households, industry, and business. For electric power generation, wind, solar, biomass, and geothermal based electricity are the choices most frequently considered for new generating capacity in a carbon-constrained world. The search for viable renewable technologies that have the high capacity factors and reduced intermittency has become more urgent as the utilization of electric-drive vehicles, such as plug-in hybrid electric vehicles (PHEVs), take hold in certain areas. It is for these reasons that geothermal energy supplies an increasingly piece of the renewable energy spectrum with it’s stable “always on” capability with sufficient resource densities for single plants to supply tens of thousands of homes and businesses.

The Hudson Ranch I Power was borne out of this need and was developed into Project Finance Magazine’s, “2010 North American Geothermal Deal of the Year” award by Hannon Armstrong and Catalyst Renewables both of whom cofounded EnergySource, the plant owner and operator. Hannon Armstrong led sourcing the $400 million in debt and equity financing needed for construction. Financing the project was complicated by the scarcity of capital created by the financial turmoil occurring at that time plus the fact that the financial markets had not seen a triple-flash geothermal transaction in 20 years. Hannon Armstrong reached out to PowerSurety principal Ken Ormsbee, who at the time was working for Chevron USA, to engage on the project. Ken, along with other PowerSurety principals directed a fast-track technical and financial due diligence operation that resulted in the final investment that allowed this important project to be completed.

The Facility is a triple flash plant using Crystallizer Reactor Clarifier (CRC) technology to process the geothermal brine and steam from the Salton Sea production wells.  The plant can be grouped into the following two areas: the Brine Processing Facility, (BPF), and the Turbine Generator Facility (TGF).  The BPF will encompass up to 3 production wells on a single well pad, the production pipelines, the CRC system, and the injection system with up to 3 brine injection wells and a plant injection well.  The BPF processes the brine to generate turbine quality steam at three pressures (HP, SP and LP) for the TGF.  The BPF brine continues through an atmospheric flash tank, two clarifiers, and the main brine injection system.  The BPF also includes the Plant Thickener, the solids handling system, the steam scrubbers, and the aerated brine injection well.  The brine injection system begins at the pipe specification break on the discharge of the Main Brine Injection Pump and the injection piping system shall continue to as many as three injection wells located on a single pad.  The TGF includes the demisters, the T/G set, electrical distribution/transmission, heat rejection equipment, fire protection, condensate injection, water treatment, non-condensible gas removal system, and H2S abatement system.
TGF auxiliary system includes instrumentation service air, cooling tower chemical addition, DCS, service/utilities/potable water, service water pond, and purge water system and dilution water system.

Technical & Financial Due Diligence Reviews/Deliverables
Production Well Resource Characteristics
Utility Transmission Services Agreement
Construction & Commissioning Review
Interconnection Agreement
Operational Proforma
Water Supply Agreement
EPC/O&M Cost Analysis
Triple Flash Technology Review
Prime Mover Review (Fuji Turbine)
O&M Contract Review
Salton Sea Geothermal Characteristics
  • Largest Geothermal Resource in North America

  • Shallow Heat Anomaly

  • Low Resource Degradation

  • High Temperature Resource

  • Good Well Depth Porosity

  • Sedimentary Reservoir Rock System

Return to Projects