geothermal development plan: pinal county · oracle 2,206 san manuel 4,708 superior 5,629 2020...

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GEOTHERMAL DEVELOPMENT PLAN: PINAL COUNTY Prepared by The Arizona Geothermal Commercialization Team Don H. White, Ph.D., Principal Investigator Larry A. Goldstone, Project Manager Arizona Geological Survey Open-File Report 79-11 Arizona Geological Survey 416 W. Congress, Suite #100, Tucson, Arizona 85701 State Contractor: Arizona Solar Energy Commission James F. Wamock, Jr., Director Frank Mancini, Ph.D., Associate Director 1700 West Washington Phoenix, Arizona 85007 Work pelformed under Contract No. DE-FC03-80RA50076, Modification No. A-001 Evaluation of Geothermal Energy in Arizona U.S. Departnwnt of Energy San Francisco Office Region IX Subcontract 114-80 with Department of Chemical Engineering University of Arizona Tucson, Arizona 85721 This report is preliminary and has not been edited or reviewed for conformity with Arizona Geological Survey standards

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Page 1: GEOTHERMAL DEVELOPMENT PLAN: PINAL COUNTY · Oracle 2,206 San Manuel 4,708 Superior 5,629 2020 34,466 7,757 33,539 13,949 11,691 5,287 5,189 3,316 10,200 6,823 7,979 Casa Grande,

GEOTHERMAL DEVELOPMENT PLAN:PINAL COUNTY

Prepared byThe Arizona Geothermal Commercialization Team

Don H. White, Ph.D., Principal InvestigatorLarry A. Goldstone, Project Manager

Arizona Geological SurveyOpen-File Report 79-11

Arizona Geological Survey416 W. Congress, Suite #100, Tucson, Arizona 85701

State Contractor:Arizona Solar Energy Commission

James F. Wamock, Jr., DirectorFrank Mancini, Ph.D., Associate Director

1700 West Washington Phoenix, Arizona 85007

Work pelformed underContract No. DE-FC03-80RA50076, Modification No. A-001

Evaluation ofGeothermal Energy in ArizonaU.S. Departnwnt ofEnergy San Francisco Office Region IX

Subcontract 114-80 withDepartment of Chemical Engineering

University ofArizona Tucson, Arizona 85721

This report is preliminary and has not been editedor reviewed for conformity with Arizona Geological Survey standards

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Page 3: GEOTHERMAL DEVELOPMENT PLAN: PINAL COUNTY · Oracle 2,206 San Manuel 4,708 Superior 5,629 2020 34,466 7,757 33,539 13,949 11,691 5,287 5,189 3,316 10,200 6,823 7,979 Casa Grande,

ACKNOWLEDGEMENTS

The Arizona Geothermal Commercialization Team has been comprised

of many individuals over the past several years. Recognition is

extended to the following professors who have contributed to the

Team's efforts: John Kessler, Ph.D.; Mike Pasqualetti, Ph.D.; and

David Wolf, Ph.D~

Group leaders were Mohamad Chehab, Larry Goldstone, Lani Malysa

and Bill Weibel.

Other contributors include Cherif Ballamane, Ronda Bitterli,

Wei-hsin (Alex) Chung, Elizabeth Foster, Jeff Hagen, Akram Hasan,

Greta Jensen, Gary Kyle, Timeral Rowe, Edward Seames and John Westover.

The following people were special task contributors: Don Astrom,

Greta Jensen, Iftikhar Khan, Doug Linkhart, Lani Malysa, Mobin Qaheri,

Xavier Suarez, Charles Tabet and Steve Unguran.

In addition, W. Richard Hahman, Sr., Claudia Stone and Jim Witcher

of the Arizona Bureau of Geology and Mineral Technology-Geothermal Group

deserve recognition for their contributions and assistance.

Special thanks are extended to Bette Holt for drafting some of the

figures and to Peggy Jackson and Lee DeYonghe for their assistance in

typing the final manuscript.

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TABLE OF CONTENTS

LIST OF FIGURES

LIST OF TABLES

INTRODUCTION

AREA DEVELOPMENT PLANS

GEOTHERMAL RESOURCES

ECONOMY

PopulationGrowthIndustry and EmploymentIncomeOther Economic Indicators

LAND OWNERSHIP

ENERGY USE

WATER

MATCHING GEOTHERMAL RESOURCES TO POTENTIAL USERS

APPENDIX A

BIBLIOGRAPHY

i

ii

iii

1

2

2

66899

9

12

13

15

22

24

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LIST OF FIGURES

Figure

1 Area Development Plans for Arizona

2 Arizona's Proven, Potential and Inferred Resources

3 Population Projections for Pinal County

4 Employment Sector Projections for Pinal County

5 General Land Ownership Map for Pinal County

6 Projected Alternatives for Water Use in Pinal County

7 Projected Geothermal Heat On Line Under Private Development

8 Projected Geothermal Heat On Line Under City Development

ii

Page

3

4

7

10

11

14

16

17

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Table

1

2

3

4

5

6

7

8

9

10

LIST OF TABLES

Some Common Conversion Factors

Proven and Potential Reservoirs of Pinal County of LessThan 1.2 Km Depth

Major Towns in Pinal County and Their Current and ProjectedPopulations

Breakdown of Land Ownership in Pinal County

Energy-Use Projections for Pinal County

Estimated Average Energy Prices by User Class, 1979

Estimated Process Heat Energy Requirements

Barrels of Oil Replaced by Geothermal Energy Per Year ­Process Heat Market

Number of Firms Within Various Agricultural Sectors forSome Cities in Pinal County

Energy Use in the Prepared Feeds Segment

iii

2

5

8

12

12

13

18

19

19

20

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INTRODUCTION

Alternative sources of energy will have to be developed as the avail-

ability of traditional energy resources continues to diminish. Arizona

is supplied with geothermal reserves which could potentially supplement

the existing energy supplies. Consequently, planning efforts have con-

centrated on estimating the potential of geothermal energy utilization in

Arizona and in providing information necessary for its prospective com-

mercialization.

Geothermal commercialization plans were prepared for seven distinct

intrastate subdivisions. The geothermal resource prospect and the poten-

tial geothermal uses for each area are discussed in separate Area Develop-

ment Plans (ADPs). The major objective of the ADP is to provide information

for the prospective development and commercialization of geothermal energy

in the specified area. Attempts are made to match the available geothermal

resources to potential residential, commercial, industrial and agricultural

users.

This ADP is concerned with geothermal potential in Pinal County. Wells

drilled in the county provide evidence of geothermal energy sufficient for

process heat and space heating and cooling applications. Annual energy con-

sumption was estimated for industries whose process heat requirements are

o 0less than 105 C (221 F). This information was then used to model the in-

troduction of geothermal energy into the process heat market. Also, agri-

culture and agribusiness industries were identified. Many of these are

located on or near a geothermal resource and might be able to utilize

geothermal energy in their operations.

-1-

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AREA DEVELOPMENT PLANS

Arizona has been divided into seven distinct single or multicounty

subdivisions for which Area Development Plans (ADPs) for geothermal com-

mercialization have been developed. A map of Arizona presented in

Figure 1 shows these areas which are numbered in order of planning priority.

This ADP is concerned with Pinal County. Both metric and English

units are provided in the text. However, only metric units appear in the

tables and figures. For convenience, some common conversion factors are

listed in Table 1.

TABLE 1: SOME COMMON CONVERSION FACTORS

Length and Volume Conversions:

To Convert: Multiply Bv: To Obtain:,

meters 3.281 feet

kilometers 0.6214 miles

cubic kilometers 0.2399 cubic miles

liters 0.2642 gallons

T C · OF -- (1'.8 x °C} + 32.emperature onvers~ons: u

GEOTHERMAL RESOURCES

° 0Four areas of proven geothermal resources of less than 90 C (194 F)

are located within Pinal County. Numbered boxes in Figure 2. identify these

areas; Table 2 gives the location of each of these areas along with rough

depth, volume and temperature estimates.

Thirty-eight wells drilled in Pinal County have surface water tem­

peratures ranging from 35.0oc (95 0 F) to 7l.7oC (16loFl; well depths range

from 84 m (276 ft) to 995 m (3265 ft). Most of these wells are located in

-2-

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Priorities

I) MaricopaII) Pima.III) Graham/GreenleeIV) PinalV) YumaVI) Cochise/Santa CruzVII) Northern Counties

(1,3,4,8,9,13)

County Names

1. Apache2. Cochise3. Coconino4. Gila5. Graham6.' Greenlee7. Maricopa8. Mohave9.- Navajo10. Pima11. Pinal12. Santa Cruz13. Yavapai14. Yuma

Figure 1: Area Development Plans for Arizona.

-3-

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APACHE

'lI

II

NAVAJO

rJ ._.:..J COCHISE :

I J i lil""··.... t SA1:rTA. ,.:-.... ~ I ~I

........... ...;,... CRUZ i oBiabee .:(:/' II........... --------r----- :::...-J

PIMA

")

114" 113" 112"37" --____ __......,.-__

ili

MOHAVE ).{

34"r----+---_

..................... ""-Q4

...9_.,.,+'rl'--l.._SO...l.,_..--__--luf MILESr I I I i I I -o 50 100 KILOMETERS

Ill" 110" 109"--~T---- I -----

I iI·I·I\,·I

36"\-~::Lf~~--4i-+------=~--f----+~~---i-----~

From J. C. Witcher (1979)INOEX MAP OF ARIZONA

Figure 2: Arizona's Proven, Potential and Inferred Resources.

-4-

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TABLE 2: PROVEN AND POTENTIAL RESERVOIRS OF PINAL COUNTY OF LESS THAN 1.2 KM DEPTH

Modified from Witcher (1979) Tr - Average Reservoir Temperature

Area Location Volu~e

(km )

oMeasured ( C)Temperature

oDep th Tr C C)(km)

GeothermometrzTemperature ( C)

Method

IlJlI

1

2

3

4

R5-88 , R7-9E

T8-10S, R16-l8E

T8-9S, R6-8E

T4-78, R2-4E

126.9

61.9

80.5

164.1

30-45

30-45

30-45

30-40

<0.76 55 40-80 Chalcedony

<0.31 60 50-70 Chalcedony

<0.76 55 40..,..80 Chalcedony

<0.46 55 ..,.- Reservoir Temg. forGradient ~ 35 C/km

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the Coolidge area. Twelve wells in this area discharge water at less than

o o. 0 050 C (122 F); seven wells d~scharge water at greater than 50 C (122 F).

Fluids discharged during a production test of a 250Q-m '(8200-ft)

geothermal test well drilled in the Picacho Basin reached a maximum tem-

o 0perature of 82 C (180 F). This temperature is not sufficient for electric

power production but could be applicable to space and process heating.

A forthcoming state geothermal map compiled by the Arizona Bureau of

Geology and Mineral Technology and published by the National Oceanographic

and Atmospheric Administration will provide a complete and updated listing

of data concerning thermal well and spring locations as well as temperature

and depth estimates, flow rates and total dissolved solids. This map

will be available in late 1981.

ECONOMY

Population

The 1980 population of Pinal County was 90,918. The total land areaI

of 5,386 square miles give the county a population density of 17 persons

per square mile. Ethnic breakdown of the population is 50 percent white,

36 percent Hispanic, 9 percent Indian and 4 percent black.

Growth

Historically, the population of Pinal County has grown at a 2.6 percent

annual rate since 1950. Future projections place growth at a 1.6 percent

annual rate to 2020. Figure 3 presents population projections for Pinal

County.

Pinal County, situated between Maricopa and Pima counties, is pre-

dominantly rural. The major cities and their populations are listed in

Table 3.

-6-

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190,OdO

180,000

170,000

160,000

I

l150,OOO-..j

I

140.000

130,000

120,000

110,000

80,000

70,000

85 90 95 2000 05 10 15 20

Figure 3: Population Projections for Pinal County.Source: Technical Advisory Committee (DES)

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TABLE 3: MAJOR TOWNS IN PINAL COUNTY AND THEIR CURRENT AND

PROJECTED POPULATIONS

1979

Apache Junction 9,979

Arizona City 1,239

Casa Grande 16,908

Coolidge 7,427

Eloy 7,039

Florence 3,181

Kearny 2,703

Mammoth 2,228

Oracle 2,206

San Manuel 4,708

Superior 5,629

2020

34,466

7,757

33,539

13,949

11,691

5,287

5,189

3,316

10,200

6,823

7,979

Casa Grande, located between Phoenix and Tucson, is the largest city in

Pinal County. It is expected to grow at a 1.8 percent annual rate with re-

sidential expansion occurring to the north and industrial expansion occurring

to the west. Coolidge, the second largest city, is growing at a 1.5 percent

annual rate with expansion occurring primarily to the west.

Industry and EmplOyment

Pinal County is well balanced in terms of employment options. Mining,

agriculture and manufacturing are all important sectors of the economy.

Mining output contributed nearly $400 million to the Pinal County economy

in 1977. Estimated mining employment for 1979 in Pinal County was 6282

workers. Projections place mining employment at 9124 by the year 2000,

an annual growth rate of 1.8 percent.

Value added by manufacturing amounted to $88 million in 1977, a

-8-

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decline from the 19.72 leveL Manufacturing employed 2320. persons in 1919.;

projections place manufacturing employment at 5891 by 2000.

Total value of agricultural production in 19]7 was $244 million, down

from the. 1976 1e.vels. Agriculture. employed a total of 3782 workers in 1919.•

By 2000, the. number of agricultural workers is expected to decline to 3014.

Tourism is also some.what important in Pinal County. In 19]8, expendi­

tures on tourism in Pinal County we.re estimated at over $28 million.

Figure 4 summarizes employment in 191~ in Pinal County and provides

projected employment information to the year 2QOQ. According to the figures,

the fastest growing employment sectors are mining and manufacturing.

Income

Personal income and per capita income are both projected to grow at

real annual rates of 4.3 percent and 2.6 percent, respectively. The current

level of personal income. is $282 million and per capita income is $3,228.

Both are in 1912 dollars.

Other Economic Indicators

Between 1~68 and 19]8, the. value. of retail sa1e.s steadily increased

in Pinal County with a 251 percent increase occurring over the ten-year

period. Bank deposits increased by 20Q percent over the same time period.

LAJ.'ID OWNERSHIP

Figure 5 shows a general land ownership map for Pinal County.

Acreage breakdowns for each ownership class are. pre.sented in Table 4.

Procedures for acquiring surface and mineral rights depend upon which

se.ctor owns the. land.

-9-

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Number of

Employlees

10.000

~2000

9000

r-8000

7000I

19786000 L .---

5000I

t--0I 4000 .. 1978

r-l2000

- - r-3000

2000

1000

2000r-

1978r-

2000r--

Loca.

2000r-

Civilian

1978n

2000.--

Services

19.18..-

FIRE

2000In nTrade

2000..--

Utilities

1978nManuf.

1978..--

Constr.

2000..---

1978r-

2000..---

1978

nHinlngAgricult.

Figure 4: Employment Sector Projections for Pinal County.Source: Department of Economic Security

_., ..=.""".~."> ....",",.~"..~,~,-<,_,.,~, ... "' __ ~=-F'" •• - !" m®:"-

Page 17: GEOTHERMAL DEVELOPMENT PLAN: PINAL COUNTY · Oracle 2,206 San Manuel 4,708 Superior 5,629 2020 34,466 7,757 33,539 13,949 11,691 5,287 5,189 3,316 10,200 6,823 7,979 Casa Grande,

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PINAL COUNTY - LAND OWNERSHIP

Figure 5: General Land Ownership Map For Pinal County.Source: Arizona Water Conunission (1977)

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TABLE 4: BREAKDOWN OF LAND OWNERSHIP IN PINAL COUNTY

Acres Percent of Total

Federal 791,660 23

State 1,239,120 36

Indian 550,720 16

Private 860,500 25

Total 3,442,000

ENERGY USE

Electricity, natural gas, distillate fuels and liquid petroleum gas, the

energy types that the county most depends upon, are considered here. No

attempt has been made to project the impact of the use of alternative energy

sources such as wind power and solar energy.

Energy use and projections of energy use to the year 2020 for Pinal

County are presented by user class in Table 5.

TABLE 5: ENERGY-USE PROJECTIONS FOR PINAL COUNTY( 1) (Trillion Btu)

1978 (2) 1985(3) 2000(3) 2020(3)

Residential 2.19 2.0 1.8 2.0

Commercial 2.58 2.4 2.1 2.3

Industrial 5.0 4.6 4.0 4.4

Total 9.77 9.0 7.9 8.7

(1) Excludes transportation and conversion and transmission losses fromthe generation of electricity.

(2) 1978 figures for each sector were developed from Arizona Energy Use,1978 compiled by the Division of Economic and Business Research,University of Arizona.

-12-

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(3) Projections were developed by the New Mexico Energy Institute bymaking use of growth rates for each user class.

The figures in Table 5 do not necessarily reflect what actual consumption

will be but do show a general projection of energy-use trends. Energy use,

determined by factors such as personal income and price of energy, is ex-

pected to decline in all three user classes due to consumer responsiveness

to energy price increases. Table 6 shows 1979 energy prices for each user

class per million Btu.

TABLE 6: ESTI}~TED AVERAGE ErillRGY PRICES BY USER CLASS, 1979 (Per Million Btu)

Residential Connnercial(l) Industrial (2)

Electricity $14.65 - $17.58 $11. 70 $8.07

Natural Gas $3.27 $ 2~48 $2.36

Liquid Petroleum Gas $3.27 - $4.20 same same

Distillates $4.72 - $4.51 same same

(1) Commercial: includes sm~ll industry

(2) Industrial: large industry

Source: Salt River Project Agr. Improvement and Power District, Arizona,Feb. 26, 1979; Arizona Public Service Co., Gas Division, 1979 data.

WATER

Figure 6 shows projections of water availability and use for Pinal

County. The three alternative futures presented in the figure take into

account a variety of factors such as population growth, industrial develop-

ment and consumer habits and lifestyles that will have an effect on the

future level of water use. The alternative futures summary in the figure

-13-

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PINAL COUNTY

ALTERNATIVE FUTURES

PROJECTED ALTERNATIVE WATER DEPLETIONSAND DEPENDA8LE SUPPLY

2100,.------------------------------.,l­UJUJu...UJex:~u.oI,J)

oz:4I,J)

::lo::tI-

1400 f-

ALTERNATIVE

~\.T. t

'fEAR

FUTURES SUMMARY

-

ITEM ALTERNATlVE FUTURES

(Quanlllles in Thou.andsl I 11 III

1970 1990 2020 1990 2020 1990 2020

POPULATION 68.6 138.0 218.0 115.0 157.0 115.0 157.0

HARVESTED ACRES 231.0 2710 292.0 244.0 248.0 244.0 143.0

URBAN DEPLETIONS AF/VR 11.6 18.1 25.5 16.0 19.8 16.0 19.8

STEAM ELECTRIC DEPLETIONS AF/VR 1.4 1.8 S.3 1.4 3.3 1.4 3.3

MINERAL DEPLETIONS AF/YR 31.0 61.0 219.0 79.0 160.0 79.0 160.0

AGRICUlTURAl DEPL. AF/YR 830.0 934.0 942.0 639.0 601.0 839.0 462.0

TOTAL WATER DEPL. AF/VR 674 1035 1192 935 984 935 645

DEPENDABLE WATER AFiVR 2501 991 645 991 645 991 645

SURPLUS SUPPLY (Def) (620) (44) (547) 56 (339) 58 0

Figure 6: Projected Alternatives for Water Use in Pinal County.Source: Arizona Water Commission (1977)

-14-

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shows that water use for agriculture accounts for 95 percent of projected

water depletions in Pinal County; mineral production, accounting for less

than four percent of total water depletions, is the county's second major

water user. Both projected urban and steam electric water depletions are

relatively small in comparison to total expected depletions.

In Pinal County, the assumed allocation of the Central Arizona Project

(CAP) water is expected to completely satisfy the water needs for a short

period of time after the CAP is complete. However, as agricultural water

supplies from the Project decrease, the dependable supply available to the

county will shrink rapidly. Under Alternative II in Figure 6, the dependable

water supply is projected to decrease from 991,000 acre-feet in 1990 to

645,000 acre-feet in 2020. In 2020, annual deficiencies of 547,000 acre­

feet and 339,000 acre-feet are predicted under Alternatives I and II, res­

pectively; Alternative III predicts a balance between water supply and

demand.

MATCHING GEOTHERMAL RESOURCES TO POTENTIAL USERS

One aim of the development plan is to define a time frame in which

geothermal resources will reatize commercial use. A time line was produced

with the assistance of the New Mexico Energy Institute (NMEI). Information

provid~d by the Solar Energy Research Institute identified industries with­

in Pinal County having process heat requirements less than 1050

C (221oF).

Annual energy consumption was then estimated for each of these industries

which are identified by a four-digit standard industrial code. This

information, tabulated in Table 7, was then used to model the introduction

of geothermal energy into the process heat market. Figures 7 and 8 show

time line results of this modeling under private development and under city

-15-

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Figure 7: Projected Geothermal Heat On Line Under Private Development.Source: New Mexico Energy Institute

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Figure 8: Projected Geothermal Heat On Line Under City Development.Source: New Mexico Energy Institute

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utility development t respectively. The differences primarily are due

to variations in the cost of capital and tax liabilities for each type

of development. Comparison of the figures shows that development of

geothermal energy would occur faster under a city utility than it would

under private development.

TABLE 7: ESTIMATED PROCESS HEAT ENERGY REQUIREMENTS

Assumed Reservoir Temperature: 1050

C

SIC Number Description Energy Use12Code of Firms Btu/yr x 10

2048 1 Animal Feed .323

2086 1 Soft Drinks .0016

2099 2 Misc. Foods .0033

2519 1 Jiouseho1d Furniture .1802

2599 1 Furniture and Fixtures .1395

3273 2 Ready-Mix Concrete .0058

3441 1 Structural Metal .0164

3443 1 Boiler Shops .0014

3499 3 Misc. Metal Products .4526

3911 1 Jewelry .0003

Total 1.127

For purposes of comparison t the results of the modeling are presented in

summary form in Table 8 in terms of barrels of oil replaced by geothermal

energy annually.

The NMEI model is discussed more fully in Appendix A.

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TABLE 8: BARRELS OF OIL REPLACED BY GEOTHERMAL ENERGY PER YEAR·

Process Heat Market

Private Developer

City Utility

1985

416,071

1,145,695

1990

1,351,685

1,561,599

2000

1,767,589

1,769,551

2020

2,624,057

2,624,057

Specific industries in Casa Grande which may be able to use geothermal

energy for their space heating and/or process heat needs include Arizona

T~~ti1e Corporation, Casa Grande Oil Mill, Casa Grande Valley Newspapers,

Champion Products, Hexce1 Corporation, Pinal Materials Company Incorporated

and Skyline Corporation. Geothermal applications may also ~~ist in Coolidge

for Gila Enterprises and Gila River Indian Enterprises, Incorporated.

In matching geothermal resources to potential users, the agribusiness

and agriculture industries within Final County were identified. Table 9

presents a list of the types of agribusiness industries in the county and

the cities in which they are located. Many of these oper~tions are located

on or near a geothermal resource and probably could adopt geothermal energy.

TABLE 9: NUMBER OF FIRMS WITHIN VARIOUS AGRICULTURAL

SECTORS FOR SOME CITIES IN PINAL COUNTY

City

Casa Grande

Coolidge

E10y

Maricopa

Picacho

AgriculturalChemicals

4

1

-19-

Feeds

3

1

1

CottonProducts

7

2

3

2

1

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Geothermal energy may also have some applications in the prepared

feeds industry. The prepared feeds industry is comprised of plants pri-

marily engaged in manufacturing prepared feeds and feed ingredients (alfalfa

meal and feed supplements) for livestock and poultry. An estimated 52.8

percent of the total energy consumed by the industry in 197.2 was provided

by natural gas; 10.6 percent was provided by fuel oil and 27.6 percent by

purchased electricity. The remaining energy was obtained from other sources

such as gasoline and diesel fuel consumed in harvesting and transporting.

The prepared feeds industry is divided into five segments: prepared

feeds, dehydrated alfalfa, sun-cured alfalfa, dehydrated grass and dehy-

drated citrus pulp. The prepared feeds segment, producing over 97 percent

of the total output of the industry, is the most significant segment in

terms of tons of feed processed. The type and amount of energy used in

this segment for the various manufacturing processes are shown in Table 10.

TABLE 10: ENERGY USE IN THE PREPARED FEEDS SEGMENT

Source: Energy-Saving Techniques for the FoodIndustry, Noyes Data Corporation, 1977

Process

Drying (direct use)

Boiler losses

Conditioning, flakingand pelleting

Plant heating and othersteam users

Mechanical power

Lighting

,Type Energy Used

Fuel

Fuel to boiler

Steam

Steam

Electricity

Electricity

Percent of Total

1.0

18.6

36.6

6.7

35.2

1.9

100.0

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As shown in the table, the conditioning, flaking, and pelleting operations

and the production of mechanical power consume the greatest amounts of

energy. Less than seven percent of the total energy consumed is used for

plant heating and other steam uses while only one percent is used for drying.

There is one plant in Pinal County that falls under the prepared feeds

industrial classification. Geothermal energy has potential applications

in the drying process, in heating boiler feed water and in space heating.

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Appendix A

The New Mexico Energy Institute at New Mexico State University has

developed a computer simulation model, BTHE&~, to assess the economic

feasibility of residential and commercial district space heating, hot

water heating and industrial process heating using low temperature geo-

thermal energy. Another model, CASH, was developed to depict the growth

of geothermal energy on line over the next 40 years as a function of price

of competing energy sources. A major assumption of these models is that

geothermal energy must be price-competitive with the lowest-cost conventional

energy source in order to assure market capture.

Development of a geothermal resource is characterized by large capital

outlays, but a long-term geothermal investment has the potential to provide

relatively inexpensive energy at a stable price. Unlike natural gas and

-electricity, however, geothermal energy is an unknown energy involving cer-

tain risks such as price and reservoir life and the need for back-up systems.

An analysis of the costs and economic competitiveness of geothermal energy

must take these uncertainties into account. Thus, costs may be overestimated

so that the benefits will not be overstated.

BTHERM models the residential, commercial and industrial sectors

of a typical city, each sector having unique energy costs and energy system

physical parameters as well as different growth rates. The model possesses

the ability to model each sector individually and can analyze the application

of geothermal energy to new growth only, to conversion of existing structures

or to a combination of both. The model also has the capability to model

both private and city-owned utility development of the geothermal resource.

Output of the model includes the levelized price per million Btu of

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delivered energy, the discounted present value of investment necessary and

the undiscounted values of investments for policy studies. Also, from input

of the price and price growth rate of conventional energy, the model deter­

mines the discounted or undiscounted values for federal and state taxes,

tax credits, royalty rates, property taxes and consumer savings due to

conversion from conventional energy to geothermal.

Certain limitations of the model have already been suggested. Costs,

for example, may be overestimated due to safeguards built into the model to

take into account the risks associated with geothermal energy. This over­

estimation of costs might result in the exclusion of a potential use of

geothermal energy. Another limitation is that the price of natural gas is

taken as the price of competitive (conventional) energy, but not all users

have access to natural gas.

The output of the model is not a substitute for detailed engineering

design studies but it is useful for determining order-of-magnitude costs

and potential benefits of geothermal energy development.

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BIBLIOGRAPHY

References used in preparing the Area Development Plans

Arizona Agricultural Statistics 1978, 1979: Phoenix, Arizona, ArizonaCrop and Livestock Reporting Service, 68 p.

Arizona Community Profiles, 1981: Phoenix, Arizona, Research Program,Arizona Office of Economic Planning and Development.

Arizona Statistical Review, 1979: Phoenix, Arizona, Valley National Bankof Arizona, 72 p.

Brown, K., 1978, Industrial Process Heat Demand Balance: Golden, Colorado,Solar Energy Research Institute, unpublished draft.

Climatograph of U.S. No. 81 Arizona, 1978: Asheville, North Carolina,National Climate Center.

Dunn, D. and Cox, D.C., 1979, Papers in Community Development No.2 - Socio­Economic Indicators for Small Towns: Tucson, Arizona, Rural InformationCenter, 58 p.

Energy Analysis of 108 Industrial Processes, 1979: Philadelphia, Pennsylvania,Drexel University.

Energy-Saving Techniques for the Food Industry, 1977, M.E. Casper, editor:Park Ridge, New Jersey, Noyes Data Corporation, 657 p.

Frank, H.J., 1977, Arizona Energy Inventory: 1977: University of Arizona,Tucson, 100 p.

Gerber, L.A., Worden, M.A., and Dunn, D., 1980, Papers in Community Devel­opment No. 5 - Safford, Arizona: A Trade Area Analysis: Tucson,Arizona, Rural Information Center, 76 p.

Gibson, L.J., Worden, M.A., and Solot, M.S., 1979, Papers in CommunityDevelopment No.1 - A Citizen's Handbook for Evaluating Community Impacts:Tucson, Arizona, Rural Information Center, 65 p.

Hodgson, ~.L., 1978, Arizona Job Scene 1985: A Labor Markee InformationPublication of the Arizona Department of Economic Security, 133 p.

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Industrial Waste Heat Survey, 1978, Rocket Research Company.

Inside Phoenix 1979, 1979: Phoenix, Arizona, Phoenix Newspapers, Inc., 152 p.

Inside Phoenix 1981, 1981: Phoenix, Arizona, Phoenix Newspapers, Inc., 128 p.

1981 Directory of Arizona Manufacturers, 1981: Phoenix, Arizona, PhoenL~

Metropolitan Chamber of Commerce, 200 p.

Phase II - Arizona State Water Plan: Alternative Future, 1977: Phoenix,Arizona, Arizona Water Commission, 145 p.

Population, Employment and Income Projections for Arizona Counties 1977 ­2000, July 1978 & 1979: Arizona Department of Economic Security.

Population Estimates of Arizona as of July 1, 1979: Phoenix, Arizona, ArizonaDepartment of Economic Security Report No. 12, 66 p.

Statistical Report for Financial Analysis 1969 - 1979: Phoe~x, Arizona,Arizona Public Service Company, 24 p.

Stone, C~, 1980, Preliminary Assessment of the Geothermal Potential at thePapago Farms, Papago Indian Reservation, Arizona: State of ArizonaBureau of Geology and Mineral Technology Open-File Report 80-6, 62 p.

Stone, C., 1981, A Preliminary Assessment of the Geothermal Resource Poten­tial of the Yuma Area, Arizona: State of Arizona Bureau of Geologyand Mineral Technology Open-File Report 81-4, 28 p.

Survey and Analysis of Solar Energy Process Heat Opportunities in Arizona,1979: University of Arizona, Department of Nuclear Energy, EnergyManagement and Poli~J Analysis Group, Final Report prepared for ArizonaSolar Energy Research Commission under Office of Economic Planning andDevelopment Contract No. 458-78

Swanberg, C.A., Morgan", P., Stoyer, C.H., and others, 1977, An AppraisalStudy of the Geothermal Resources of Arizona and Adjacent Areas in ~ew

Mexico and Utah and Their Value for Desalination and other Uses: NewMexico Energy Institute Report No.6, 76 p.

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Tucson Trends 1980, 1980: Tucson, Arizona, Valley National Bank of Arizonaand Tucson Newspapers Inc., 88 p.

Witcher, J.C., 1979, Proven, Potential and Inferred Geothermal Resources ofArizona and Their Heat Contents: State of Arizona Bureau of Geologyand Mineral Technology Open-File Report ~-5, 65 p.

~

Witcher, J.C., 1981, Geothermal Energy Potential of the Lower San FranciscoRiver Region, Arizona: U.S, Geological Survey Open-File Report 81-7,

~ 135 P.

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