Construction of a geothermal cogeneration installation for the production of heat, electricity and cold at Chochołowskie Thermal Baths (HYDRO-GEO)

Project facts

Project promoter:
Chochołowskie Termy sp. z o.o.(PL)
Project Number:
PL-CLIMATE-0020
Status:
Completed
Final project cost:
€7,060,277

Description

The need to implement the project results comes from the necessity to reduce energy costs, increase energy supply security (currently the company''s energy supplies are based on one geothermal-well drilled in the 1990s) and the need to fulfill the obligations imposed by the Concession in force, which requires the construction of an injection well before 2026.

The project involves the expansion of the existing geothermal installation with a new geothermal (production) well with an ORC power plant, a water turbine to supply facilities with heat, cooling and electricity from renewable energy sources. The existing PIG 1 well will be changed into an absorbent well in accordance with the requirements of the Concession

The environmental effect is an increase in avoided emission of CO2 - 1,586 Mg / year, production of electricity 1,835 MWh / year, production of geothermal heat 134,220 GJ / year

The beneficiaries of the project will be: the Company itself, the inhabitants of Chochołów and Witów, because the biggest company in this part will not emit CO2 or harmful dust. Students of technical studies and clients in general.

        

Summary of project results

Chochołowskie Termy has undertaken a project to construct a geothermal cogeneration installation for the production of heat, electricity, and cooling (project acronym: HYDRO-GEO). This investment is co-financed by the National Fund for Environmental Protection and Water Management within the EEA Financial Mechanism for 2014-2021 and the Norwegian Financial Mechanism for 2014-2021 under the Environment, Energy and Climate Change Program (deep geothermal energy).

As part of its core activities, the company operates a complex of thermal pools. Additionally, Chochołowskie Termy manages a Mining Facility, engages in research and development activities, and works to benefit the local community.

The thermal water used to heat the facility and fill the thermal pools is extracted from a depth of 3,572 meters. The Chochołów PIG 1 well, from which the water is drawn, was drilled in 1989-1990 and is one of the most abundant sources in the region. The water temperature at the source is approximately 90 degrees Celsius. Electricity for the facility has been purchased from a national power supplier. This electricity is derived from fossil fuels (non-ecological) and its cost increases year by year.

Given the concession requirements, which mandate the existence of a second well to serve as an injection well, the rising costs of electricity, and the company’s consistent policy of sustainable ecological development, the decision was made to undertake a project aimed at modernizing and expanding the existing energy generation sources. This includes the addition of a geothermal heating plant and power station, as well as the construction of a photovoltaic power plant integrated with an energy storage system. The photovoltaic power plant integrated with an energy storage system forms a hybrid project HYDRO-GEO-SOLAR also co-financed by the National Fund for Environmental Protection and Water Management under the priority program No. 5.18 Polish Geothermal Plus.

Thanks to the implementation of the HGS project:

  • a new geothermal well was drilled (an injection well)
  • the capacity of the existing source has increased from 120m3/h to 160 m3 / h.
  • In order to fully use the energy potential of the geothermal well, the result of the project is a cascade heat collection system, equipped with an ORC installation (first in Poland), heat exchangers, a micro water turbine, a photovoltaic installation and an energy storage.

In addition to HYDRO-GEO-SOLAR project, it is planned to prepare a project for the management of the heat for the construction of a local district heating network. The construction of the local district heating system based on geothermal water would allow for heating the surrounding houses located in Witów and the historic village of Chochołów which is under conservation protection. As a result, it would be possible to reduce low emissions and significantly improve the well-being of the local community. This initiative is being planned now.

The HGS project aims to:

  • ensure the continuity and reliability of geothermal heat supply for the energy needs of Chochołowskie Termy;
  • increase in the use of energy from renewable sources;
  • increase the avoided CO2 emissions due to the reduction of electricity consumption from the power grid of Tauron SA.

An additional goal of the company is to create conditions for the development of a project for a district heating system based on geothermal heat.

The objectives of the project are in line with the objectives of the priority programs in terms of increasing the use of geothermal resources in Poland and reducing the negative impact of enterprises on the environment, including improving air quality, by supporting investment projects.

To achieve the above mentioned aims, it was necessary to drill a new geothermal well (an injection well) and build new renewable energy sources (RES) for the production of heat and electricity. The new well has allowed to achieve a closed loop geothermal system, and the whole project itself a  wider industrial use of the geothermal source, which supplies the current swimming pool facility and the newly built recreation and relaxation area, and in the following years it may allow for the development of a district heating system based on geothermal heat for the neighbouring villages.

The project includes two technologies for the production of electricity from geothermal energy: ORC installation of approximately 205 kWe and a 45 kWe water micro-turbine.

A supplementary source of electricity in the planned RES installation in Termy is a photovoltaic power plant with a capacity of about 700 kWp, which has been located on the surface of the current parking. The installation of photovoltaic plant on so called carports has allowed for the development of free space above the parked cars, without interfering with the free space intended for customers staying in the Thermal Baths, and increasing their comfort - in summer cars will be less heated (as a consequence, the consumption of air conditioning in cars will decrease, i.e. fuel consumption will decrease), and cars will not be snow-covered in winter. The photovoltaic part is not financed within EEE funds but with HYDRO-GEO part of the investment forms a complete system of energy production.

In order to maximize the use of renewable energy sources, the enterprise has installed an electricity storage in order to optimize the system for generating energy from renewable sources and energy management. The energy storage will be loaded from the PV power plant and ORC installation outside the peak demand, and the surplus energy will be used for the own needs of the Chochołowskie Thermal Baths facilities.

DETAILED INFORMATION

Task 1: Geothermal Well GT-1

From April 2022 to November 2022, drilling operations were conducted, achieving a final well depth of 4,228 meters. Planned intensification work, including fracturing and acidizing, was carried out as specified in the Geological Work Plan. In December 2022, unforeseeable instability in the Chochołów GT-1 well led to its blockage at a depth of 3,743.21 meters. The inability to remove the obstruction necessitated a trajectory change and additional work to drill a sidetrack. In January 2023, drilling operations were completed, and a geothermal wellhead was installed. The final depth after additional work was 3,795 meters.

Hydrogeological documentation was prepared and approved, and a request for a license modification was submitted. The new license and updated operational plan were issued. The injection well was commissioned in August 2024 and added to the fixed asset register.

Task 2: Injection Pumps for Well GT-1

A set of injection pumps, comprising five pumping units, was purchased. Delivery occurred in March 2024. The equipment was installed, commissioned by the end of August 2024, and recorded as fixed assets.

Task 3: Water Turbine

The water turbine was designed between 2022 and 2023. It was subsequently manufactured and delivered to Chochołowskie Termy. During 2024, the turbine was integrated with pipelines and other system components. By the end of August 2024, the turbine was recorded as a fixed asset.

Task 4: ORC Installation

The ORC (Organic Rankine Cycle) installation was designed between 2022 and 2023. It was delivered to Chochołowskie Termy and mounted on a foundation. The ORC was connected to pipelines, other system components, and the PIG-1 well. The installation was accepted and recorded as a fixed asset at the end of August 2024.

Task 5: Construction Work

Construction work for the foundation and technological pipelines was conducted between 2023 and 2024. The pumping station was connected to the injection well in the first half of 2024. The foundation for the ORC installation and technological pipelines were registered as fixed assets.

Task 6: Promotional and Educational Activities

Promotional and educational activities related to the project were carried out as planned, targeting various audiences and stakeholders. During the project implementation, various informational and educational activities were carried out targeting technical university students, schoolchildren, and visitors to Chochołowskie Termy. The following promotional activities were conducted as part of the project:

  • An informational board, containing complete details about the funding, was displayed at the entrance in a publicly visible location.
  • Study visits to the project site and presentations about the ongoing project were organized. Participants included students and university pupils, as well as representatives from the Polish Academy of Sciences (PAN) and other industry institutions.
  • Information about the project was published on the website: https://www.chocholowskietermy.pl/projekt/.
  • A dedicated website, https://eko.chocholowskietermy.pl, was designed to showcase the project and all activities related to environmental protection at Chochołowskie Termy, as well as corporate social responsibility efforts.
  • The project was presented during a study visit by representatives of Chochołowskie Termy to Iceland on September 27, 2023, as part of the KeyGeothermal project also financed from EEA funds.
  • In August 2023, the Mineral and Energy Economy Research Institute of the Polish Academy of Sciences created an informational and educational film about geothermal conditions and investments in the Podhale region. On August 22, 2023, representatives of Chochołowskie Termy participated in the filming to present the new investment being implemented under the project. The development of this material was commissioned by the Ministry of Climate and Environment.
  • Photos and descriptions of selected project activities were added to the Media Library database in accordance with the requirements outlined on https://www.gov.pl/web/klimat/media-library.
  • In December 2023, a representative of Chochołowskie Termy (Izabela Strzelecka) participated in a panel session titled "Geothermal Projects Under Implementation," presenting the project and providing information about its co-financing through the EEA Mechanism and the Polish Geothermal Plus program.
  • In January 2024, the first of three planned educational events took place. Fifth-year students of Water Engineering and Management at the University of Agriculture participated in workshops titled: "Water Gives Power, Water Gives Energy – Using Geothermal Waters for Energy and Heat Production in Line with Sustainable Development Principles." The workshop was led by Ms. Izabela Strzelecka (Management Strategy and Development Advisor) and Ms. Agnieszka Zachora-Buławska (Deputy Head of the Technical Department and a doctoral student at the University of Agriculture).
  • In April 2024, the second of three planned educational events was held, targeting employees of the Polish Geological Institute - National Research Institute.
  • During the closing conference of the EEA Financial Mechanism project "Building the Key Capacities of Stakeholders in the Field of Geothermal Energy" in April 2024, a representative of Chochołowskie Termy participated in a discussion panel, presenting the progress of the HGS project.
  • In May 2024, Ms. Agnieszka Zachora-Buławska participated in the 4th International Scientific Conference and Ecological and Environmental Engineering in Beja, Portugal, where she discussed the project being implemented at Chochołowskie Termy.
  • In June, the third workshop was held for students of Environmental Engineering.

Also in June, Chochołowskie Termy showcased the project during the Health Picnic organized in Nowy Targ.

The implementation of the project delivered significant outcomes and impacts across several dimensions, benefiting multiple stakeholders.

1. Environmental Impact

  • Reduction in carbon emissions: By transitioning from fossil fuel-derived electricity to renewable energy sources, the project contributes to lowering greenhouse gas emissions. The environmental effect of the implementation of the HGS project will be the increased in avoided emission in CO2 - 1900 t / year
  • More efficient resource use: The integration of geothermal energy, photovoltaic systems, and energy storage ensures the sustainable use of natural resources. The expected effect of reducing the demand for electricity from the power grid should reach an average of 25% per year for this project.
  • Energy circularity: The use of a closed-loop system for geothermal water minimizes waste and promotes eco-friendly practices.
  • Additional results of the project will be:
    • electricity production from hydropower plants at the level of 1,834 MWh / year
    • heat production from geothermal energy 18,071.27 MWh / year
  • The above-mentioned results relate only to the Thermal Baths investment project, while the effects of the possible construction of a district heating system will be estimated at the moment of starting the implementation of the concept of additional heat management from the borehole.

Beneficiaries: The environment and the broader community benefit from reduced carbon emissions and sustainable resource management.

2. Technological and infrastructure outcomes

  • Innovative energy system: The successful integration of an ORC installation, a micro water turbine, and photovoltaic panels represents a pioneering approach in Poland.
  • Operational efficiency: The facility now has a reliable, cost-efficient, and renewable energy source, reducing dependence on the external electricity provider (Tauron S.A).
  • Advanced energy management: The specialized energy management software enables optimized energy production, storage, and usage.

Beneficiaries: Chochołowskie Termy and technical partners engaged in energy system design and management.

3. Economic and financial impact

  • Cost savings: Transitioning to renewable energy sources decreases long-term operational costs by reducing reliance on purchased electricity.
  • Increased investment appeal: Demonstrating innovative solutions and successful project execution enhances the facility’s reputation and potential for future funding.

Beneficiaries: Chochołowskie Termy, the tourism sector, and local businesses supported by the facility''s operations.

4. Educational and Social Impact

  • Knowledge dissemination: The project included educational initiatives targeting technical students, school children, and visitors, raising awareness about renewable energy and sustainability.
  • Community engagement: Workshops, study visits, and public presentations fostered community involvement and understanding of geothermal energy.

Beneficiaries: Local residents, educational institutions, students, and visitors to Chochołowskie Termy.

5. Policy and industry impact

  • Model for future projects: The project serves as a benchmark for integrating renewable energy sources in tourism and wellness facilities.
  • Support for energy transition goals: The project aligns with national and international objectives for renewable energy adoption and climate change mitigation.

Beneficiaries: Policymakers, energy industry stakeholders, and other facilities exploring sustainable energy solutions.

Summary of impact

The project has had far-reaching positive effects, creating a sustainable energy model that benefits the environment, the local economy, and the community. It also provides a replicable framework for future renewable energy projects, contributing to broader national and international energy transition goals.

Information on the projects funded by the EEA and Norway Grants is provided by the Programme and Fund Operators in the Beneficiary States, who are responsible for the completeness and accuracy of this information.