Solar EOR a Big Win for GlassPoint

The greenhouses that contain GlassPoint’s 1 GW Miraah solar EOR during construction at the Amal oil field in Oman

Unlike other CSP developers who leverage the heat of the sun as the “fuel” for a power block that then generates electricity to the grid; GlassPoint’s enclosed troughs are simply employed in the direct production of steam, focusing on what the company sees as an ignored market for heat.

“We founded the company to not do electricity,” explained Chief Technology Officer and co-founder, Pete von Behrens, the holder of numerous patents. “Almost everybody else has been focused on the electricity market which competes with very low cost photovoltaics. If you make heat instead, you eliminate the need for a power block and open yourself up to a major untapped market. The demand for heat is much bigger than the solar utility market.”

“We had to take our technology and optimize it for a number of challenges. We first solved the problem of how to make cheap heat, which is the big problem. Then we had to uniquely solve how to keep it clean in super dusty high wind environments.”

Hence; the greenhouses.

How GlassPoint evolved

Even after deciding nine years ago to focus just on producing heat rather than on electricity generation, it took von Behrens and co-founder Rod MacGregor some time to find the perfect application for their technology. While industrial processing uses a lot of heat for steam, or to dry things out, or to heat ovens or kilns, they found that each application has its own peculiarity, making it tough to focus on any one industry need that would constitute a large enough market.

“There are many applications for industrial heat but most don’t have the right amount of scale. There are also technical considerations; for example, the temperature may need to be very hot or heat is needed on a continuous 24 hour cycle, so there’s a lot of peculiarities that can drive costs up,” von Behrens explained. “We didn’t necessarily understand that because of the many different heat requirements, finding the right application was pretty tricky even with heat, and it took us a little time to find the right application.”

The challenge was to find a market that required a temperature range they could meet where they could provide heat at a large enough scale, at a lower cost than natural gas, and of course, found in countries with the high DNI – direct normal irradiance – that is ideal for concentrated solar power (CSP).

The Goldilocks Customer

GlassPoint found that perfect market in the world’s sunny high DNI desert regions of the Middle East. The company has fine-tuned its technology to specifically provide steam for EOR – enhanced oil recovery. The steam helps to flush out heavy oil, which is too viscous to pump to the surface using primary oil production methods.

After a “prove it” pilot demonstration at 7 MW thermal, GlassPoint was able to land the world’s largest order for solar thermal. Miraah, a $600 million, 1 GW thermal solar EOR steam producer for Petroleum Development Oman (PDO), the Sultanate’s largest hydrocarbons producer. The pilot tested one greenhouse unit. Because it is modular, each unit will make its own steam.

“The pilot has been a resounding success,” PDO Managing Director Raoul Restucci said in a testimonial on the company’s website. “It has exceeded its nameplate capacity. It’s met all its criteria. Above all, it’s shown minimal maintenance requirements, very high reliability, and an outstanding uptime in excess of 98% no matter what the weather over the past two and a half years.”

With its massive energy demand and deep pockets, the oil industry turned out to be the Goldilocks customer.

“It turned out to be significantly bigger and better than we had expected. The oil and gas industry is one of the largest energy consumers in the world,” said von Behrens. “Aside from EOR, refining is also very energy-intensive; a lot of thermal energy, usually in the form of steam, is needed to turn crude oil into the fuel that can be burned in your car. Different applications need different temperatures, but it’s all pretty well in our sweet spot.”

Oil is found in deserts, where there is plentiful sun and the conditions are idea for solar thermal. The oil industry needs steam in the temperature range of GlassPoint’s “sweet spot.” It can use balance-sheet funding to shepherd innovative technology across “the valley of death” into full-scale operation – and to top it all off, in much of the Middle East, the natural gas it traditionally uses for EOR is expensive or scarce.

Fossil Fuel Subsidies Indirectly Boosted Solar

Like many Gulf nations, Oman has a growing gas shortage. PDO estimated that with solar replacing natural gas, the company will save 5.6 trillion Btus of natural gas each year.

It might seem counterintuitive that natural gas is scarce or expensive in oil fields. As with other oil-rich regions, natural gas co-occurs in many Gulf oil fields. But perversely there is a disincentive to invest in extracting it, because regional governments have heavily subsidized consumer use of natural gas to ensure domestic tranquility.

Consequently, local natural gas prices are so low that there is little incentive for industry to invest in the infrastructure to extract it. Governments buy cheaper gas on the world market, and oil fields flare it off.

So, while the Gulf is famous for its oil industry, its natural gas industry barely exists. Oman’s neighbour, Qatar has natural gas, but can get a better price on the international market.

So, ironically, in the Gulf, fossil fuel subsidies have – in a roundabout way – made solar a cheaper option.

2008: Pete von Behrens ponders GlassPoint’s initial project; a 300 kW thermal project at Berry Petroleum in California’s oil-rich Kern County.

A Bonus in Enclosing the Parabolic Troughs

To protect from the dusty environment of an oil field the company invented enclosed trough technology. For the enclosure, GlassPoint bought readily available commercial greenhouses used in agriculture – with standard off-the-shelf cleaning robots. This decision had many benefits.

Normally parabolic troughs have to be engineered to withstand wind. But because GlassPoint’s parabolic mirrors are inside the glasshouses, not exposed to wind, they can be much lighter weight than usual, which reduces costs.

“By eliminating the wind load, GlassPoint is able to use ultra-lightweight, thin reflectors, which are suspended from the roof of the greenhouse,” Dr. Chiaki Treynor, Vice President of Technology at GlassPoint told attendees at the 2016 SolarPACES award ceremony in Abu Dhabi.

“Compared to older solar thermal designs with exposed reflectors, we use a fraction of the raw materials throughout the entire system,” she explained.

GlassPoint Solar won the 2016 SolarPACES Technical Innovation Award for its innovative enclosed trough technology generating steam.

“This has a cascading effect on cost—from reduced shipping costs, installation costs, to using smaller, off-the-shelf motors and drive systems used to track the sun. Since our reflectors are low-cost, we pack them much closer together to achieve the highest ground efficiency of any solar thermal system. This is particularly important for steam generation on oilfields, where siting is limited by active wells, roads and transmission lines.”

Images: GlassPoint

  • Steven Geiger

    kudos to Oman and PDO for pioneering solar EOR. But as with any fast-moving technology like solar, new innovations quickly make older technologies obsolete. Unfortunately this is the case with Glasspoint and its glasshouse technology.

    6 years ago, it was easy to sell the story that you “need to put solar mirrors in an expensive glasshouse for protection”. Nobody knew, since there were no local CSP plants. But now we have real-life operating data available from open-field CSP plants like Shams 1 in Abu Dhabi which demonstrates beyond any doubt that exposed parabolic trough mirrors can withstand the harshest Middle East desert conditions (dust, sand, winds, even >125 kmph sandstorms!!) and still perform ABOVE specifications.

    Additionally, Glasspoint actually requires more land, not less, than some other CSP systems. For example, their own Miraah fact sheet says they need 300 hectares to produce 6000 tons of steam per day, while companies like Solarlite can produce the same amount while only using 215 hectares, i.e. ~30% less land than Glasspoint requires. So for tight oilfield spaces, they are not the most appropriate technology.

    It is also an open question whether Glasspoint actually uses MORE, rather than less, raw materials than other CSP designs. The amount of glass used in building their stadium-sized fully-enclosed structures is enormous, plus the concrete base of the glasshouses. Compared with open-field CSP systems using very thin mirrors (0.9 mm) and a light-weight composite trough with optimized support structures, Glasspoint may using more raw materials. It would be great if they could provide some data from Miraah on how many tons of glass, aluminum & steel they need per ton of steam produced so the industry could possibly validate their claim.

    Oman has invested ~$40 million through their wealth fund into Glasspoint, so one can understand their desire to recover this investment. Unfortunately, steam from Glasspoint’s systems is $7/ton more expensive than others. At some point, they will realize they are throwing away another $40 million every 2.5 years of every Miraah they build, or $400 million lost in overpriced steam over each project’s 25-year life.

    • Interesting point, Steven. I will have to research this other solar EOR firm: I had no idea that the competition was anything other than the previous natural gas technology; that this represents a first in class. But I would like to see more solar steam for all the other industries that use steam.

      But as to the cost of the glasshouses though, since they are just mass-market agricultural greenhouses, I’d imagine that they are relatively cheap?

      • Steven Geiger

        Susan, if you Google “solar EOR myths” the technical and business case is laid out explicitly on my Slideshare doc (this site won’t let me post a link). On page 14, you’ll see why Glasspoint can never produce cheap steam.

        The fundamental design limitations impose such a hit on efficiency that all the “cheap materials” in the world cannot overcome these huge losses. You lose 10% efficiency just going through the glass roof, then another 10% from a poor reflective surface (which they like to call “cheap mirrors”….as they say, “the cheap pay twice”), and the worst is yet another whopping 20% loss in output because the troughs must be placed literally right next to each other. They are not doing this voluntarily as they say: they must, otherwise the expensive glasshouse will become massively expensive if they spaced out the rows.

        Added up, these losses are so big that nothing can save them. They had a good run for a while on the “need to protect the trough” story, but as you see in the presentation and Shams 1 in Abu Dhabi has now proven, every one of their claims has been thoroughly debunked (i.e. troughs in the field can’t handle wind, dust, sandstorms, cleaning…blah blah).

        On page 16, everyone can see a head-to-head comparison, where other systems produce 55-70% more steam for the same price, and higher quality steam as well. As I said, eventually someone higher up in Oman will realize there is no point throwing good money after bad, and making their future oil production less and less competitive, especially as they desperately need every additional dollar they can earn for their national treasury and population.

        Interesting that you mention other industrial steam applications. Because there is beautiful synergy for high-efficiency DSG troughs. Pages 35-40 show the “scale multiplier”, whereby scale gained in EOR translates into CSP and into SIPH. HE-DSG trough can do 1.4 cents/kWh-th today, with a clear roadmap for 0.7 cents/kWh-th @1900 DNI and decent industrial size, including all capex & opex. Which other solar thermal technology can beat this?

        Finally concerning the “glass is cheap” myth, nothing is cheap if you need a LOT of it. Glasspoint uses way more raw material glass than HE-DSG trough, about the same amount of concrete, and perhaps some slight savings on steel. If they would publish their material balances, we could possibly verify their claim, but to date they have chosen not to. Until then, it is just one more myth.

        PPS, if your main material is commodity glass, you are not going to be able to reduce your costs much with scale. The price of commodity glass doesn’t change much with volume.

      • …actually on googling them, see that this firm is really not remotely comparable. Their proposed project is just under 5 MW, (compared to Glasspoint’s 1,000 MW) and not even for EOR either, and they don’t seem to have even developed their trough design yet. So I really don’t understand why you are so impassioned on their behalf.

        • Steven Geiger

          Susan, not sure what you mean by “remotely comparable”. So let’s let the facts speak for themselves:

          Imagine you were a small company with superior technology and entered the only open tender for solar EOR held in the last 5 years against a competitor which has:

          a. a war chest over $80m
          b. top-name VCs backing it (Rockport, Chrysalix)
          c. backed by a major oil company as a strategic investor (Shell), who owns 34% of the national Oman oil company and has an influential $3 billion advisory contract with Kuwait National Oil Company for heavy oil & EOR development
          d. has a large 1 GWth project under development, with all the scale economies associated with that.
          e. did 2 of the only 3 solar EOR projects on the planet

          and despite all those advantages, your technology won. And won by not 10 or 20%, but but by more than 100%! Stop and think about that for a moment: your competitor is building a giant 1 GW project yet still cannot come even remotely close to a company lacking all those scale economies and ability to “influence things”, shall we say.

          Doesn’t that really tell you everything about one technology being far superior to another?

          So you might be, as you say, a bit “impassioned” having a better mousetrap with significant potential.

          Also not sure what you mean by “they haven’t even develop their trough design”. I guess you are not aware that Solarlite has already built the world’s first commercial DSG CSP power plant back in 2011. Project banked financed, as well. Independently inspected by DLR 2 years later and found to be overperforming all performance specs.

          I trust you’ll agree that it’s not really possible to do a bank-financed commercial CSP power plant if you “haven’t even figured out your troughs”. So we’ll write that one off to a simple lack of information.

          DSG is essential for solar EOR, and there are only 2 companies I’m aware of who have completed commercial DSG CSP plants, and Solarlite is one. No one has to date completed a commercial DSG solar EOR project; Glasspoint has done 2 pilots and Brightsource 1 pilot.

          It is difficult for most CSP companies to pivot to solar EOR because they’ve never done DSG and because they’ve designed for projects minimum 50MWe / 150MWe. So the pool of truly qualified companies for solar EOR is indeed very small.

          But solar EOR is pretty trivial for a company who pioneered DSG like Solarlite. Handling dirty oilfield water is not a problem; you can either run in closed loop with a heat exchanger (cheap n easy), or you run directly in your receiver tubes. Also not an issue if done properly, and KOC agreed when they awarded the tender to Solarlite. 2 other major oil companies have also agreed.

          Susan, I’ve enjoyed reading your writings on solar and CSP. And for sure, you’re not expected to do deep dives on technical & economic analysis just to write articles. But I have yet to meet a single CSP or solar thermal expert who sees any merit in putting troughs in a glasshouse which loses 45% efficiency. If you find one, please let me know.

        • Steven Geiger

          Susan, Solarlite built the world’s 1st commercial direct-steam CSP power plant. It was bank financed, so obviously they have fully-deployable commercial systems. It was also 19MWth, larger than anything @GlasspointSolar has brought online and achieved customer final acceptance test with, at least as of today.

          EOR is not complicated if you’ve been working with DSG systems for 15 years (like Solarlite). You simply run the dirty water with modified receivers, or in the worst case you run normal water in closed-loop with a heat exchanger (cheap and easy). Actually relatively simply stuff, but some people like to mystify it.

          So yes, I am impassioned with a commercially-proven technology in a $50 billion business which has already beaten the “industry leader” #Glasspoint in an open tender and can undercut their costs any day of the year by a whopping 40-50%. Who wouldn’t be?