Feasibility studies for geothermal projects

Abstract

Geothermal projects are complex and require high upfront investments before a decision can be made if to execute the project or not. It is important to carefully plan and organize the project preparation to ensure that the right information is available at the right time and presented in correct manner to help making the right decisions. The economy of geothermal projects is sensitive and errors in resource assessment and project design can be very costly. And the history of geothermal projects shows that such errors have been made in the past. This paper presents a stage gate process to help organizing the project preparation with the aim of optimising the financial success at the same time as minimising risk. The key document for the decision making process isthe feasibility study. The paper discusses the essential content and advice on how to prepare that document.