Management of risk through exploration and site assessment

Management of risk through exploration and site assessment Drilling rig on The Geysers project site of Western GeoPower (probably around 2007/ 2008) (source: Western GeoPower)
Alexander Richter 24 Jul 2012

The management of geothermal exploration risk continues to be a hot topic and this recent article looks at the European experience and how it could be applied to North American geothermal projects.

A recent article in North American Clean Energy describes a way to mitigate risk for geothermal projects and describes “financial risk mitigation” as the “golden bullet” to geothermal exploration.

There are so many examples of well run and successful projects in geothermal development, but also many examples of unsuccessful projects.

The article was written by Michael Albrecht and Helmut Tenzer of TBA PowerSo when the two authors in the article describe well laid out exploration not only as a scientific exercise, but as a risk management tool, one has to agree.

The authors also refer to the different approach in Europe and the U.S. and say that a better exchange of information, could essentially change and make project outcomes in the U.S. more successful.

The article talks in some detail on how European projects have set up tasks for both evaluation and management of risk, that are now part of the due diligence process as requested by investors and e.g. by the drilling insurance.

The article is worth reading and can be accessed via the link below.

Source: North American Clean Energy