Geothermal energy is considered to be one of the most sustainable energy sources owing to its limited burning of fuels and minimal emission of carbon dioxide and other greenhouse gases. As long as the earth is in existence, there will be a continuous source of energy to harness.
Derived from the heat produced by the slow decay of radioactive particles in the core of the earth, geothermal reservoirs are located deep underground where the most active geothermal resources exist along major tectonic plate boundaries.
Vareo understands the risks and variables which impact capital expenditure and operational expenditure for development of geothermal energy projects. As there can be significant risks involved with initial exploration and drilling, Vareo works closely with regulatory authorities to ensure a robust permitting program underpins each stage of delivery. This is achieved through development of a detailed Environmental and Regulatory Plan, applicable Technical Safety deliverables which figure significantly at each progress gate approval.
Vareo's preliminary studies, feasibility studies, front-end engineering (FEED) through detailed engineering will gradually determine the optimum production rates to ensure the sustainability of a particular plant is optimized. In other words, if a particular reservoir is exhausted too fast by inefficient or accelerated extraction, supply will cease and sustainability issues will ultimately render the plant inefficient and sometimes commercially crippled. Vareo's proven track record, risk mitigation and engineering processes provide technical assurance and plant process integrity in what can often be a high-risk scope environment.
Vareo spend considerable time early on in the engineering phase to investigate the geological and seismic conditions which can impact the plant over the course of its producing life. For example, although the production of geothermal energy does not release greenhouse gases, there can be a variety of sub-surface issues which are often ignored or missed. During the drilling phase and deep digging, the earth's structure maybe disrupted by shifts in tectonic plates resulting in an earthquake and the escape of gases into the atmosphere. All are considered extensively during the Environmental Impact Assessment.
Vareo's engineering team works seamlessly with procurement who in-turn interface with technical estimators to develop early cost estimates in support of conceptual and feasibility studies, FEED and detailed design reports. Once design definition reaches a specific level of completion, sourcing begins and POs can be issued ensuring any long-lead items support the execution strategy. Vareo's turnkey delivery follows a gated process which uses specific criteria (technical, financial, commercial) to allow progress from one stage to the next. Within that criteria there mandatory deliverables agreed with our client which must be fulfilled to allow progress beyond a specific gate.