Geothermal Direct Use for a Crop

Drying Center in Costa Rica

Implemented by In cooperation with
Published by
Deutsche Gesellschaft für
Internationale Zusammenarbeit (GIZ) GmbH

Registered offices
Bonn and Eschborn, Germany

“Promotion of Geothermal Energy in Central America (Geo I)”

GIZ Office San Salvador
Boulevard Orden de Malta, Casa de la Cooperación Alemana,
Urbanización Santa Elena, La Libertad, El Salvador, Central America
T +503 2121-5145
F +503 2121-5101

E energia.ca@giz.de
I https: https://www.giz.de/en/worldwide/78071.html
I www.sica.int/energias4e/

As of
September 2020

Authors
Helen S. Carpenter
Based on the feasibility study conducted by:
Mauricio Muñoz, Sofia Vargas
Centro de Excelencia en Geotermia de los Andes CEGA

Editing
Isabel von Griesheim, Max Fernandez,
Ana Lucía Alfaro and Karla Hernandez (GIZ)

GIZ is responsible for the content of this publication

On behalf of the German Federal Ministry for Economic
Cooperation and Development (BMZ)

Design and layout

Plasmático Media Lab (Consultant), Karla Hernandez and Neimy Giron (GIZ)

Photo credits
Marco Entchev (GIZ)

2
 73% of the electrical energy
production in Central America is
produced with renewable energy
sources. From that, 5.2% is
provided by geothermal energy.

Source: ECLAC 2018.

3
 This summary presents findings from research
on the technical, economic, and social feasibility
of developing a geothermal direct use pilot
project in Costa Rica. The research took place
from 2018 to 2019 and forms part of the regional
project “Promotion of Geothermal Energy in
Central America (Geo I)” (2016-2020), which was
implemented by the Deutsche Gesellschaft für
Executive Internationale Zusammenarbeit (GIZ) GmbH on
behalf of the German Federal Ministry for Economic

Summary Cooperation and Development (BMZ). The objective

was to provide technical support as well as incentives
to invest in geothermal energy in Central America.
The main counterpart on the project was the Central
American System for Regional Integration (SICA).
The technical support from GIZ will continue in
a second phase that focuses on geothermal heat
processes in Central American industry (2020-2023).

For the project described here, GIZ consulted

the Costa Rican Institute of Electricity (ICE),
collected data and information, and established
relationships with potential stakeholders. In 2018,
GIZ commissioned the Andean Geothermal Center
of Excellence (CEGA) to research the feasibility of
developing a direct use project. The local community
supported the initiative, welcoming a plan to create
the country’s first direct use geothermal crop drying
facility.

The geothermal energy resources of interest, part

of the Dr. Alfredo Mainieri Protti Geothermal Field
in Miravalles, are a strong asset for the surrounding
community. In the canton of Bagaces and in nearby
municipalities, access to crop drying and storage
facilities that use geothermal heat could improve
farmers’ production and profits. Tapping into the
infrastructure already in place for the Miravalles
geothermal power plants can help producers dry and
store their harvest, thus gaining time and growing
income, all while learning about geothermal energy.
A drying and storage center based on direct use of
geothermal energy not only keeps carbon emissions
low, it can also promote sustainable community
development.
Cooling Tower at “Alfredo Mainieri Protti”
Geothermal Field/ Miravalles V

4
Benefits of
a drying center
Understanding energy needs: an empathy based- approach to design sustainable energy solutions using the geothermal
resource for a grain drying station.
The first of its kind in Costa Rica, the proposed
geothermal drying center will dry, store, and
commercialize crops and create jobs. GIZ researched
the project’s feasibility in terms of costs, risks, and
opportunities, and technical, social, and economic
requirements. The result of careful planning, the
drying center includes an initial pilot phase, where
the project will focus on onions, rice, beans, and
corn—crops with the highest potential for steady
and profitable sales. Over time, new crops may be
added. There are no other drying centers in the
5
area, so the proposed project fills an important
gap for local producers. The use of geothermal
energy reduces drying time considerably without
fossil fuels and thus avoids emitting carbon. At the
same time, the technification of the drying process
stabilizes and optimizes product quality regardless
of weather conditions, which makes the direct use
of geothermal energy a valuable anecdote to the
unreliable drying and storage conditions associated
with climate change.
An innovation that improves
the local economy
Field trip and interview with local cocoa producer, another possible beneficiary of the geothermal-powered drying station.
The drying center can build the local economy
in important ways. For example, a drying center
can help producers increase the quantity of goods
that they bring to the market. Currently, producers
dry crops naturally on fields or in homemade
artisan facilities, a process where they can lose
approximately 10 % to 50 % of their harvest due to
damage from sources such as rain, mold, and pests.
To mitigate this loss, they typically sell the crops
quickly after harvest. This means they may sell their
produce after ten or more days of natural drying, in
the case of onions and beans, or sometimes after
more than a month of drying, in the case of corn.
6
Because many producers are selling the same crops
at the same time, there is competition and prices
decline. After selling the harvest, producers must
budget wisely or find another source of income.
Access to a drying center can change all of this.
Using dryers, producers can preserve more of their
crops and do so at a faster rate, decreasing the time it
takes to prepare them while increasing the quantity
available to sell. Producers can dry their crops soon
after harvest instead of leaving them in the fields.
They can control the amount of drying time and
the temperatures for drying, skillfully calibrating
 Dryng Center Activities

| Receiving agricultural products from the

field-at first, onion, rice, beans, and corn.

| Transporting produce from warehouse

to either the onion drying room
or the grain processing room.

| Performing a quality control check.

| Cleaning grains.

| Drying onions and grains.

| Removing husks and cleaning

rice, beans, and corn.

| Performing final quality control check

to discard poor quality grains.

| Packaging products with environmental

or green logo in “quintals” (bags of 46 kg).

| Storing products in dedicated warehouses.

| Distributing products to consumers by

transporting them to markets, public
institutions, and government warehouses,
or selling them directly at the warehouse.

Through the interviews, experts pointed out that one of the

Figure 1. Drying center activities crops that could benefit the most out of the drying station
would be beans.

moisture levels, yielding reliable and dependable

quality. Afterwards, producers can safely store
dried crops in the warehouses, strategically saving
the crops to sell later, either throughout the year
or during specific seasons when prices are higher.
The availability of crops outside of harvest time
supports government objectives to supply food
year-round in the region and it allows producers to
have better control of their incomes.
In addition to providing services and facilities for
producers, the drying center will add revenue to
the local economy by operating a crop processing
business (Figure 1). The center will purchase crops
at fair prices, and then dry, store, and commercialize
them for profit. The center’s activities will
generate income to cover capital expenditures
and operating expenses, including compensation
for ten employees. Additional financial details are
summarized below. The resulting crop processing
center will sustain itself for the proposed ten
years and, hopefully, serve as a local institution for
agribusiness for many years beyond.

7
Direct use of
geothermal energy
Key findings pointed out that another crop that could benefit the most out of the drying station would be onions.
The proposed center will be based on direct use of
geothermal energy. Specifically, the dryers and the
climate-controlled warehouse will recover thermal
energy from brine pumped through the reinjection
pipes. The dryers will use brine fluids as heat sources.
To access the brine, engineers will tap into a pipe in
the western part of the geothermal field, next to route
165 about one kilometer north of Miravalles Power
Stations I and II (Figure 2). The area of interest, near
the Miravalles volcano, has similar temperature and
mass flow of brine throughout the year. In addition,
injection in this area is always under hot conditions
around 165 °C, ensuring a stable supply of heat for
three dryers and an absorption chiller. The existing
power plants will lose little energy from the proposed
drying center; the heat reduction is minor and is
described in more detail below.
The facilities that will rely on geothermal direct
use are an onion dryer, onion warehouse, and
grain dryers. A grain warehouse will not require
geothermal direct use.
8
Onion dryer. The center includes a 300 m2 onion
dryer that will dry 30 tons in three days, in contrast
to eight days on the field. Thermal insulation in
the walls will reduce energy losses caused by air
renewals. The use of the onion dryer decreases brine
temperature by an estimated 0.1 °C.
Onion warehouse. The center includes a 450 m2
warehouse with full capacity of 120 tons of onions.
The warehouse temperature will be 25 °C with a
relative humidity of 65 % to 75 %. These temperature
and humidity conditions come from an absorption
chiller, which will reduce the brine temperature by
an estimated 0.4 °C.
Grain dryers. The center will include three bed
type dryers, each with a three-ton capacity, and
where each is able to dry rice, beans, and corn. These
dryers will decrease drying time from three days to
one. When the three grain dryers run at the same
time, they will reduce the brine temperature by an
estimated 0.1 °C.
 85°35'W 85°30'W 85°25'W 85°20'W 85°15'W 85°10'W 85°5'W 85°0'W

N
Legend Upala
City
Rincón de la vieja Aguas Claras
Tows
National Park
Dr. Alfredo Mairieri Priotti
Geothermal Field Miravalles
Main producing zone Volcano
Bicarbonated zone
Acid zone
Reinjection area Bijagua
Guayabal

Miravalles
Guayabo
Protected area
Liberia La fortuna

Bagaces

Lomas de Barbudal
Cañas
Biological Reserve

0 5 10 20 km

85°35'W 85°30'W 85°25'W 85°20'W 85°15'W 85°10'W 85°5'W 85°0'W

Figure 2. Location of the Dr. Alfredo Mainieri Protti Geothermal Field. Base map from Google Maps.

Grain warehouse. The center will include a 270 m2
warehouse for rice, beans, and corn. This warehouse,
with a full capacity of 150 tons, does not require
temperature and humidity control, so it does not use
injection brine for its operation.
Supplying heat to the dryers and the absorption chiller
in the onion warehouse reduces the temperature
of the injection fluids by only 0.6 °C. In the interest
area, the injection fluid is about 160 kg/s mass flow
at 165 °C, so this temperature reduction is minimal.
Thus, the situation in Costa Rica represents an ideal
situation for launching a geothermal pilot project.
To spread awareness and to educate others, the
center will generate a brand to highlight its unique
geothermal processes when it markets crops.
Branding should help expand marketing networks
for those involved with the drying center. Products
will display an environmental or green logo to
indicate that they were processed using renewable
and clean energies, which, in this case, are direct
uses of geothermal energy.

9
Initial costs
and projected annual
expenses and profits
View of Geothermal Well 31 at Alfredo Mainieri Protti Geothermal Field. Guanacaste, Costa Rica.
The goal is to create and operate the drying center for
a minimum of 10 years. Start-up costs are estimated
to be an initial investment of US$  386,027 for
designing and building the center and paying staff,
plus working capital of US$  144,194 for acquiring
grains and onions in the first six months. Funding
will come from bank loans, but may also come from
grants, investments, and/or donations.
10
Profits rely on the margin between wholesale
prices and farm prices as follows: onion (30.9  %),
rice (89.8 %), bean (61.9 %), and corn (13.6 %). The
production level of the plant will increase gradually
until reaching peak production at 2,222 annual
tons in the seventh year of operation. The center
potentially has a high profit margin. Indeed, CEGA
predicted the proposed center will have a positive
net present value (NPV) of US$ 1,567,839 and an
internal rate of return (IRR) of 32 %.
Designing a
geothermal drying center
GIZ Experts visited several facilities where local farmers store their grains. The local production of beans, coffee, coca, corn and
onions is among the main income source of the communities surrounding Alfredo Mainieri Protti Geothermal Field in Costa Rica.
GIZ and its collaborators developed a roadmap that
will form the basis for building the drying center
and purchasing machinery and equipment. As the
planning stage begins, engineers will develop a basic
engineering model to (a) validate and verify the data
provided in the conceptual engineering model was
developed based on the feasibility study, (b) provide
technological guarantees, and (c) determine the
cost of the pilot project facilities and machinery. At
this stage, developers will assess the tasks for the
proposed construction and articulate the business
model more thoroughly.
This basic engineering model is followed by a
detailed engineering model that fully articulates
the project. It contains detailed diagrams for
construction, equipment, electrical facilities,
management of suppliers, costs, procurement of
equipment, economic evaluation, environmental
11
impact, the control system, and the schedule of
activities. Any studies that are required will occur at
this time.
Once design plans have been finalized, construction
can begin. To build the center, managers will hire
a qualified construction company with expertise
in building a drying center and the ability to
successfully intervene the reinjection pipe. It will
be important to connect the system to the thermal
and electric power line. Managers will also have to
research and purchase machinery and equipment for
the center’s operations. Operations can begin after
construction has been completed. Different actions
include ensuring that the drying system continues
functioning, training administrative and operational
teams, monitoring the operation, and consolidating
the supply chain management.
The governance structure for
operating the drying center
A coalition of stakeholders will participate in
developing and operating the drying center. At the
onset, a governing board of key stakeholders must
be established, and the project managers must be
identified. The next step is to engage additional
stakeholders who can broaden the project’s reach.
During the planning phase, the main stakeholders
should attend workshops and seminars to cement
12
engagement and then serve as guides for the new
stakeholders who begin to contribute to the project.
From the design and construction phase onwards,
as many stakeholders as possible should attend
workshops and field trips to the site to address
possible construction and operation challenges.
Informed, cohesive leadership will contribute to the
project’s overall success.
Through the interviews the experts were able to find a
governance structure that suited the nature of the different
organizations involved in the project and a sustainable
business model.
There is both enthusiasm and support for the center,
which will call on the knowledge and skills of local
experts while opening doors for others through
processing services, employment, and training
opportunities. The feasibility study indicated that
the Costa Rican Electricity Institute (ICE) is the
most important decision maker for the project.
Additional stakeholders and their potential roles
were identified based on the scope, mission, and
vision of each group. They are as follows:

The Costa Rican Institute of Electricity (ICE) is

a state-owned company that provides electricity
and telecommunication services in Costa Rica. ICE
will serve on the Board of Directors and provide
the geothermal resource for the project. They will
also provide real estate for building facilities and
machines for the project and technical assistance
for the project design and construction. They will
support the project in obtaining financing.

The Rural Development Institute (INDER) is a

national public institution responsible for leading
Costa Rican rural community development and
executing the rural development policies. INDER
will serve on the Board, provide funding for facilities
and machines, provide management and training to
establish strategies for agricultural production at
the drying center, and provide options for project
managers to obtain loans.
The National Production Council (CNP) is a
national public institution that promotes and
encourages agricultural production activities. CNP
will serve on the Board, provide commercialization
channels, and provide technical assistance for
construction and management of the project.
The Bagaces Municipality is the most important
local authority. They will serve on the Board, engage
stakeholders throughout project development,
provide commercialization channels, provide
support to the project to obtain financing, and
support a communication channel between project
managers, local producers, and main stakeholders.
Association of Women Farmers of Guayabo
is a cooperative formed by Bagaces citizens and
Stakeholders
Individual meetings and group meetings were held
in order to collect data and experiences that would
later reflect in the proposed governance structure
and business model for the drying center.
constituted to provide drying services. They will
serve on the Board and manage the project. They
will create and manage purchase contracts with
local crop producers and create and manage sales
contracts with wholesalers and retailers.
Ciudadanía Activa Foundation is a non-
governmental, non-profit organization (NGO)
with experience in strategic planning processes,
and formulating, implementing, and monitoring
social and production projects, while the Instituto
Nacional de Fomento Cooperativo is a public
institution responsible for promoting and developing
cooperatives in Costa Rica. Together these groups

13
will help empower the project managers, improve
their capabilities, and carry out follow-up strategies
for project implementation.
Integral Agricultural Marketing Program (PIMA)
is a public institution that provides marketing
and marketing services for the strengthening of
agricultural businesses with standards of customer
service. PIMA will provide a sales area in the
Chorotega Regional Market.
The Agricultural Extension from the Ministry
of Agriculture and Livestock (MAG) promotes
and executes methods for economic, social, and
environmentally sustainable production. MAG
will provide training for economic, social, and
environmentally sustainable production for the
project managers.
The National Institute of Innovation and Transfer
in Agricultural Technology (INTA) from the Ministry
of Agriculture and Livestock (MAG) researches and
transfers farming technology. MINTA will conduct
agricultural research to improve productivity
levels and product quality and provide support to
agricultural product suppliers.
14
The Ministry of Environment and Energy (MINAE)
is the institution responsible for managing Costa
Rica’s natural and energy resources to protect the
environment. MINAE will engage stakeholders
throughout project development, create and modify
public policies, promote implementation and
replicability of the project, and provide support for
obtaining financing for the project.
Llanos de Miravalles is a cooperative of agricultural
producers from the canton of Bagaces. They will sell
products to the drying center.
National Costa Rican University is a public
university recognized as a one of the most important
research centers in the country. They will strengthen
the process of community empowerment, through
support, monitoring, and training.
Colegio Técnico Professional Fortuna de Bagaces
is a local technical college. They will strengthen
the process of community empowerment, through
support, monitoring, and training.
The local community in Bagaces and nearby areas
will sell products to the drying center.
Local authorities were also interviewed. Their inputs were
of great value to understand the role other institutions
could take and convene a governance structure.
From independence
to social cohesion
The experience and inputs of individual farmers and farmers associations were considered in the proposed business model to
improve the possibility of selling their products.
The feasibility study indicated that stakeholders
and producers typically work independently. There
is a need to train stakeholders to collaborate on
the center’s management and operations. For
example, members of local communities who could
potentially administer the project typically work
independently, not as organized groups. To promote
collaboration, institutions (such as NGOs) that help
build teams, combined with educational and training
programs, will play key roles. After establishing the
drying center, follow-up assistance for managers
and staff will continue to be necessary.
In addition, the project’s stakeholders have not
collaborated before. Stakeholders report that
15
public programs carry out isolated efforts with
little connection to the key stakeholder—ICE—
and other institutions and local communities.
Although members of the local community hold
ICE in high regard for providing jobs and caring for
the environment, several participants from local
and national institutions mentioned the need to
strengthen relationships between ICE and others
by promoting two-way exchanges, interaction,
and collaboration. By planning ways to strengthen
community and stakeholder interaction, it is
possible to create an interactive governing board
and administration to run the drying center.
Temperature measurements of an injection well carried out by the experts from both ICE and GIZ during the field trip to
Alfredo Mainieri Protti Geothermal Field.
The proposed drying center is designed to be
a sustainable operation for years to come. The
feasibility study considered factors that could either
promote or hamper the drying center’s success over
time. It researched technical factors that impact
longevity, such as the lifespan of the heat source,
the condition of the geothermal field’s mechanical
system, and the pipes that transport injection fluids.
In addition, it examined whether the center could
sustain itself both legally and economically. Finally,
it looked at social factors, such as stakeholder
contributions, social systems, and community
know-how. The resulting roadmap, , available
from GIZ, incorporates actions that will enable the
center’s success.
Heat energy at the geothermal field will remain
available for decades. Temperatures in the reservoir,
estimated from geothermometry, are similar to
bottom-hole temperatures measured in the wells.
The similarity between the calculated and measured
values, plus the constant temperature in the reservoir
16
over time, indicate that the system is thermally stable.
In addition, the pipe system that delivers the fluids
is well-maintained. A chemical treatment controls
scaling and corrosion caused by minerals and
temperature changes. After 25 years of use, efforts
to keep corrosion and scaling at bay continue to be
effective. Moreover, the useful life of the reservoir is
projected to continue until at least 2060.
The drying center will sustain itself financially
through purchasing, producing, and commercializing
crops.
There are several venues for commercializing the
crops:
y Costa’s Rica’s government-administered Food
Processing and Marketing Centers (CEPROMAs) can
purchase agricultural products from small and mid-
sized Costa Rican farmers to supply an array of public
institutions (e.g., hospitals, schools, and colleges).
y Local supermarkets, restaurants, and hotels can
sign sales contracts with the center. Supermarkets
include Wal-Mart, Auto Mercado, Compre Bien,
Perimercados, Pequeño Mundo, PriceSmart, and
MegaSuper. Additionally, there are other local
supermarkets of interest in Liberia such as Peri Liberia,
Maxi Pali, Super Compro Liberia, and Super Spiti.

y The Chorotega Regional Market is a wholesale

market that can benefit local producers by enabling
them to commercialize their products without
intermediaries to hotels, independent greengrocers,
restaurants, and other wholesale consumers. The
marketisexpectedtobenefit17,500small-andmedium-
sized producers. There are 52 stores in the market.

y Individual customers and established businesses

at farmers markets and municipal markets can
purchase from the center.

The center’s continued success will be secured

through appropriate legal agreements. ICE oversees
the geothermal field and its power plants and holds
exclusive rights to its resources. The center will
gain free access to the geothermal resources and
land for the facility from ICE; however, currently,
legal parameters for accessing the geothermal
field and its resources are underspecified. ICE has
provided a letter of support and will enter into
a legal agreement with another key stakeholder,
the community producers’ group that will run the
drying center. Representatives of the drying center
will work with ICE to develop a binding agreement
that allows the center to operate without fees for
10 years. In addition, the agreement will confer
legal rights for employees, producers, and others
engaged in center operations and sales to enter
ICE’s property to access the drying center.

Collaboration among stakeholders will help the

drying center operate profitably. Representatives
from the different stakeholder organizations will
come together for meetings, site visits, and training
to promote collaboration, stay informed, share
knowledge, and offer guidance. In addition, drying
center managers and staff will attend management As part of the Pacific Ring of Fire, a region characterized
and operational training sessions to help them by a large number of both active and inactive volcanoes,
maintain the facilities and develop a successful and Central America has significant geothermal potential. It is
currently estimated at over 6,000 megawatts.
profitable community-based business.

17
Conclusion
Alfredo Mainieri Protti Geothermal Field shares its location in Guanacaste with other renewable energy power plants that
are part of Costa Rica’s efforts to use clean energy sources to produce electricity. Clean energy production is at the heart of
the country’s Decarbonization Plan.
The research indicates that a direct use geothermal
drying center is a highly feasible project for
Costa Rica. From a technical perspective, there is
adequate heat from geothermal fluids to support
the requirements of three dryers and an absorption
chiller. ICE, who holds rights to access the field, will
allow developers to create the drying center, allow
managers and staff to access the center, and forgo
collecting fees for use of the geothermal resource
and land for 10 years. Crucially, they will allow the
facility to use reinjection brine from the Miravalles
power station. From a social perspective, the
project is feasible due to an abundance of support
from willing stakeholders. ICE is an active key
stakeholder and can offer direction and leadership.
Moreover, there is a group that is willing to manage
the center and that has demonstrated prior interest
in crop-drying, the Association of Women Farmers
of Guayabo. Creating a smooth-running team of
18
directors and managers takes planning and effort—
to enable stakeholders to collaborate and function at
a high level, there will be workshops, site visits, and
regular meetings. In addition, with the assistance
of various stakeholders, here will be regular follow-
up once the center begins operations to promote
ongoing success. Moreover, the project is legally
feasible. The geothermal source is controlled by
ICE, who has provided a letter of support allowing
the development of the center and access to its
heat source. To secure the commitment, a formal
agreement must be generated. Finally, the project
is economically feasible. Not only are there several
producers in the region who can benefit from
selling or processing crops at the center, there are
multiple private outlets and state-run programs for
commercializing the center’s agricultural products.
The center’s activities will generate income to
cover capital expenditures and operating expenses,
For years, Costa Rica has focused on generating energy in a sustainable manner by including biodiversity
conservation and landscape restoration in these ventures, and working closely with local communities.
including compensation for 10 employees. Taken
together, the technical, social, legal, and economic
situation in Costa Rica is a desirable setting for
developing a thriving geothermal direct use project
that benefits the local community.
The proposed center contributes several benefits.
At a local level, the drying center resolves farmers’
main challenges: preserving as much of a harvest
as possible through reliable drying and storage
and selling crops for fair prices and/or when prices
are the highest. Local farmers could sell produce
directly to the market instead of selling their crops
to intermediaries, as they do now. Alternatively,
they can sell their crops to the drying center for
fair prices. Working with the center’s resources,
producers can take their businesses to new levels.
At a regional level, the geothermal project could
address one of the main concerns of Costa Rican
19
ministries, which is to ensure availability of high-
quality products throughout the year regardless of
weather conditions. At a national and international
level, the center provides an example for future
geothermal projects. It is model project that
promotes agricultural innovation in the face of
climate change. Ultimately, it can provide benefits
beyond drying and storing crops
For more information, please contact the GIZ
project team.
Isabel von Griesheim
Project Manager
Promotion of Geothermal Energy in Central America
isabel.von-griesheim@giz.de
Ana Lucia Alfaro
Lead Coordinator for Pilot Projects and Knowledge
Transfer and Management.
ana.alfaro@giz.de
Implemented by In cooperation with