Augustine geothermal leasing approved
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Kristen Nelson Petroleum News
The State of Alaska has approved geothermal leasing at Augustine Island in Cook Inlet, but has also noted difficulties in use of any discovered geothermal energy because of the island’s remote location.
The Department of Natural Resources Division of Oil and Gas requested applications for and public comment on geothermal exploration at Augustine, near Kamishak Bay some 60 miles southwest of Homer, in early 2007, and said that based on responses to the call for applications and comments, the DNR commissioner would determine whether to proceed with a competitive geothermal lease sale, issue one or more non-competitive prospecting permits or cancel the offering.
A Jan. 14 finding by Division of Oil and Gas Director Bill Barron, also signed by DNR Commissioner Dan Sullivan, said the state is offering some 65,992 acres in 26 tracts on and surrounding Augustine Island for geothermal resources disposal.
The finding determined that disposal is in the best interest of the state, with potential benefits to the state outweighing possible negative effects. After a 20-day period for reconsideration requests, the decision goes into effect on the 31st day after issuance.
Active volcano The area proposed includes all of Augustine Island and some tidelands and adjacent waters within three miles of the island, but excludes nearshore tidelands of the mainland, the decision said.
Augustine Volcano on the island is active, the decision said, and at least six major eruptions have occurred in the last 200 years, with ongoing eruptions and debris avalanches shaping the irregular coastline of the island.
“Geologic hazards may exist on the island including volcanic ash clouds, ash fallout and volcanic bombs, pyroclastic flows, debris avalanches, tsunamis, earthquakes, directed blasts, lahars and floods, volcanic gases, and lava flow,” the decision said.
While the presence of geothermal energy potential is indicated by the volcano, there is no subsurface and geologic data related to the geothermal resource available.
The island area is “currently primarily used and managed for research and education, and secondarily for commercial and subsistence harvest activities,” the decision said.
Energy uses Geothermal energy can be accessed by wells and the heat energy used to generate electricity, or directly used for heat, the decision said, noting that to be economically recoverable geothermal resources must be near the surface and of very high temperature.
If a geothermal resource were discovered on Augustine Island, it could be converted to electric power, but transporting geothermal energy can be a challenge, the decision said, as it “must be used or converted to electricity within a few miles of its recovery from the ground reservoir. Compared to other energy sources, geothermal resources can only be transported a short distance using conventional technologies.”
The decision describes the challenge for transporting geothermal-generated power from Augustine Island, which is “far from existing electrical power grid infrastructure.”
The nearest power plants are the Chugach Electric Association-operated Beluga facility, on the west side of Cook Inlet some 150 miles northwest of Augustine Island, and the Homer Electric Association-operated Nikiski generation plant some 112 miles from Augustine.
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