cluff geothermal geothermal energy in the uk and overseas workshop on geothermal energy, embassy of...
TRANSCRIPT
Cluff Geothermal
Geothermal Energy in the UK and overseas
Workshop on Geothermal Energy, Embassy of Iceland17 November 2011
Presentation overview
Introduction: Cluff Geothermal
Our UK projects
The policy background
Geothermal Energy in Africa
Our vision of geothermal energy in the UK
About Cluff Geothermal
Company incorporated in March 2010, with the intention to explore for geothermal potential in the UK and overseas
Strong board of directors chaired by Algy Cluff, a very experienced businessman a who has been active in natural resource businesses since early stages of North Sea oil
We work closely with Newcastle University, who have been in the forefront of developing UK geothermal science
Business model is to take forward small number of diverse geothermal projects - several now in train in the UK and overseas.
Our UK projects
The site at Eastgate, Weardale
Geothermal energy in the NE
Several areas in the UK have attractive deep geothermal Resources, including Cornwall, the Wessex basin - and the North East, where the Weardale granite pluton provides a large geothermal heat source.
The Weardale Granite cooled and solidified about 400 million years ago, and is a key geological feature of the North Pennines. Not exposed above ground, its existence was proven in 1961 by the deep borehole at Rookhope.
Two new boreholes have been drilled in the last two years at Eastgate, to the south of Rookhope. These have foundexceptionally high permeability in the granite, making the site of great interest for geothermal energy exploitation.
Deep faults across the North East could distribute the heat produced by the Weardale Granite, making geothermal energy viable across a wide area.
UK geothermal areas
The Eastgate project
The site of a defunct Lafarge cement factory, Eastgate has outline planning for a ‘Renewable Energy Village’ with geothermal energy as the centerpiece.
Cluff has signed an exclusivity agreement with Lafarge and will develop the site’s geothermal energy to fit with the emerging surface project.
Power generation is one option at Eastgate, or we could develop a heat-only project to supply the proposed health spa.
The Eastgate spa would be the first true geothermal spring in the UK since the Romans built Bath.
Eastgate offers us several development options which - with existing, guaranteed
Government support for heat and power - are commercially attractive.
The North Tyneside project
We are also working on a heat-only geothermal project in North Tyneside.
This would supply low carbon heat to a new-build housing project and also to nearby commercial buildings via a heat network.
In the longer term, we believe this model may be replicable across the NE region, potentially providing inputs to a North Tyneside low carbon heat network.
The North Tyneside project represents a reprise of the Southampton geothermal project of the 80s. The arrival of the RHI represents a step
change in the commercial viability of these projects.
Discussion of energy policy in the UK often focuses on electricity. But in fact it is heat that dominates UK energy use, accounting for 45% of total energy used:•2/3 of gas consumption is for heat•more than 40% of UK’s CO2 emissions arise from heat use
Must focus on heat to hit our targets on energy security and carbon emissions.
DECC estimate that percentage of UK heat from renewable sources needs to increase from around 1-2% now to 9% in 2020.
Source: ‘UK Energy Trends’, DECC, October 2011
UK energy use by sector, 2009
Cluff expects the ‘Renewable Heat Incentive’ (RHI) to drive a
step change in the deployment of heat-only geothermal projects.
UK Policy will support the roll-out of geothermal heat
An ideal market for geothermal energy
East Africa is home to 270 million people and is seeing rapid economic growth: an average of 6 % per year over last 7 years.
Demand for power growing 3-5 % per year faster than GDP - and only 15% of the population so far connected to the grid.
Ten countries in the Rift Valley have good geothermal resource, with steam fumeroles at numerous sites.
Cluff Geothermal are well placed to take forward geothermal projects in the region: •huge experience of working in Africa •strong ties with Ministries and utilities
East Africa wants geothermal energy - Cluff can deliver it
The Kenyan opportunity
The population of Kenya is 45 million - with only 14 % with access to grid electricity. High economic growth - 6% over last 5 years. Captive power demand is 1400 MW, but only 1200 MW of installed power available - including highly seasonal hydroelectric power. Kenya has excellent geothermal resources, with 200 MW already developed - ultimate potential in the 1000’s of MWs. The Kenyan Government is extremely keen to develop the country’s geothermal energy potential.
Kenya is ideally placed for geothermal energy development
Geothermal Energy in Ethiopia
Ethiopia•80 million people•1400 MW of installed power•Demand of 1600 MW•8% average GDP growth over recent years •Power consumption growth 13 % p.a.•Economy being deregulated
Ethiopia currently gets almost all its electricity from hydroelectric dams. This provides relatively cheap power, though this is highly subject to seasonality.
The Ethiopian Government is keen to develop the country’s attractive geothermal resources to provide baseload power
Ethiopia’s location could also allow it to become an exporter of power to the region.
A lava lake in Ethiopia
Our vision for 2020
We expect to see:•Significant deployment of deep geothermal energy in the period up to 2020, with even brighter prospects later as costs continue to fall.•In the UK, geothermal heat only schemes rising in number, in parallel with the increased deployment of heat networks. •Reducing, but still attractive, levels of financial support. •Internationally, geothermal energy gaining an even higher profile, and attracting investment, both in areas with near surface resource and where deeper drilling is required. •The geothermal energy sector moving into the mainstream as a sustainable, low carbon UK renewable technology.
