The Federal Government of Austria, through the Climate and Energy Fund (Klima und Energiefonds), has announced a new funding programme worth EUR10mn to support deep geothermal projects.
The ‘Deep Geothermal Energy’ programme will support feasibility and preliminary studies, exploration and investigation measures, pilot drillings and the preparation of projects for the economic use of deep geothermal energy.
The aim of the funding programme is to create the basis for the implementation of efficient and environmentally-friendly deep geothermal projects. The Climate and Energy Fund will support companies and public institutions in five modules:
• Module One – Basic preliminary studies
• Module Two – Feasibility studies
• Module Three – Exploration
• Module Four – Pilot drilling
• Module Five – Citizen participation and information events
Climate and Energy Fund Managing Director, Bernd Vogl, said, “Our new programme helps to develop and implement projects for deep geothermal energy in heating networks and in industrial processes.
“The entire spectrum extends from planning to exploration to pilot drilling. This is intended, among other things, to reduce the risks associated with geothermal drilling. We are excited about the projects that will emerge from this initiative.”
UK-based, closed-loop geothermal energy developer, CeraPhi Energy, has acquired the business of Third Energy Limited, a former shale gas development company with plans to repurpose the existing wells into clean geothermal energy centres.
The acquisition includes the subsidiaries, namely Third Energy Trading Limited, Wolfland Renewables Limited, Wolfland Utilities Limited, Third Energy UK Gas Limited, and the 50% holding in West Heslerton Renewables Limited.
The assets located in North Yorkshire, UK, include eight well sites consisting of 12 former gas wells in a suspended state, 22.4 km of 6-inch and 16.6 km of 3-inch subterranean pipelines and a further 22.4 km of buried fibre optic comms lines.
CeraPhi completed a commercial demonstration of its CeraPhiWell system earlier in the summer using the Third Energy KMA site. CeraPhi’s strategy is to de-risk the scaling and commercialisation of large-scale heat networks using boreholes down to a depth of 2km, reducing the space required for deployment of large-scale systems and increasing the extraction of thermal energy available for network connections. By both drilling new wells and repurposing end-of-life and non-producing oil and gas wells, the CeraPhi solution will provide 'huge commercial potential' for the scaling of geothermal heat networks in the UK and globally.
CeraPhi Energy CEO Karl Farrow said, “The decarbonisation of heat represents a huge UK and global challenge in meeting our net zero targets. Combined with the continued insecurity customers face with volatility and seasonal cost of fossil fuels, we have to move geothermal energy to scale to reduce the cost of deploying direct use heat, which is an endless resource not subject to price fluctuation, enabling a move away from our dependency on fossil fuels within our day to day energy mix.
"By using the inexhaustible resource beneath our feet using closed-loop technology we can access this energy anywhere with zero environmental risk, requiring no hydraulic fracturing, no use of water and providing enough energy within the next 15 years to solve our energy crisis indefinitely."
Third Energy Managing Director Russell Hoare said, “At Third Energy we’ve been pursuing a transition strategy for several years now with geothermal energy at the centre of that strategy and in CeraPhi we have found a capable and accomplished partner, as proven by the successful geothermal demonstrator project at our KMA site this summer. Bringing together the expertise of CeraPhi with the assets of Third Energy is a natural progression and I look forward to working with Karl and his team to continue the story.”
The AGSM AIM Group has invested in a specialised geothermal energy project in Verona, Italy, which will see the construction of geothermal wells capable of providing clean thermal energy to those connected to the district heating network.
The project process, which began in December 2023 with the approval by the Board of Directors of AGSM AIM as part of the industrial and economic plan of the ‘Geothermal Project’, will continue over the coming weeks with the establishment of a company to lead the project.
The project will provide geothermal energy to five cogeneration plants in Verona located in Borgo Trento, Forte Procolo, Golosine, City Center and Banks, as well as the Vicenza district heating plants in the future. Utilising geothermal energy is a key part of the objectives and actions envisaged by AGSM AIM’s industrial and strategic plan which places sustainability among the main pillars of growth for the group.
Federico Testa, President of AGSM AIM, said, “Thanks to this important technology our Group confirms that it faces the challenges of the energy sector with a new vocation of values, always directed towards sustainable development and cost containment for citizens and businesses.”
The project aims to bring economic benefits to district heating customers due to the strong reduction of methane gas that will be compensated by geothermal resources. The thermal source is expected to save more than 40% of the gas consumed by the region, thus reducing CO2 emissions by approximately 30,000 tons.
Well-Safe Solutions has appointed Alexa Duncan as the company’s first Energy Transition Manager as it looks to add carbon capture and storage (CCUS) and geothermal project capabilities to its offering.
Duncan has more than a decade and a half of experience under her belt in project management and well engineering for international operators, and will play a pivotal role in the delivery of these energy transition business streams.
Duncan said, “Well-Safe Solutions is at the forefront of the well plug and abandonment industry and working closely with clients to reduce their carbon footprint. With the North Sea Transition Authority (NSTA) estimating CO2 storage capacity of 78 billion tonnes on the UK continental shelf alone, there is a clear opportunity for Well-Safe Solutions to apply its considerable expertise when assisting our clients on the journey to net zero carbon emission.
“In addition, extensive growth is also predicted within the geothermal market. I’m passionate about the energy transition and very much looking forward to collaborating with our highly experienced well engineering and subsurface teams on upcoming projects internationally.”
James Richards, Well Abandonment Director at Well-Safe Solutions, added, “Recruiting a professional of Alexa’s calibre to our team is a clear endorsement of our ambition n in this sector. Our own market research and client feedback indicates an opportunity for us to apply the lessons and collaborative working practices we deliver in well plug and abandonment to these fields.”
Getech, a world-leading locator of subsurface resources, has completed a geothermal study for Angus Energy, outlining significant potential in a UK development.
Angus Energy is committed to utilising its oil and gas drilling and engineering expertise to develop geothermal energy projects. To achieve this, the company enlisted Getech’s subsurface proficiency to locate and access promising areas for geothermal energy production in southwest England.
Getech delivered an in-depth geoscientific interpretation that included structural mapping, depth estimation and heat flow analysis. The assessment enables Angus Energy to make informed decisions regarding future development projects.
Richard Bennet, Acting Ceo AT Getech, said, “Given the drive for new was to decarbonise operations and provide consistent heat and power, investment in alternative energy sources such as geothermal is ramping up. Getech’s subsurface and geoscience expertise is helping Angus Energy take an important step toward developing sustainable energy solutions that bolster the UK’s energy security and advance decarbonisation efforts.”
Richard Herbert, CEO of Angus Energy, commented, “We are pleased to have made good progress in bringing some of our traditional skills and focus on subsurface assessment out of the world of hydrocarbons into that of alternative energies. We are grateful to Getech for their professionalism which will assist in de-risking future geothermal drilling programmes by all players in this developing sector.”
Exergy International and Geothermal Engineering Ltd. (GEL) have signed a contract for the supply of a 3MWe gross capacity Organic Rankine Cycle (ORC) power plant in Cornwall.
The United Downs project represents the first integrated deep geothermal project in the UK, poised to produce 3MWe of baseload power and up to 10MWth of zero-carbon heat for the large housing development at Langarth Garden Village.
The turnkey EPC contract awarded to Exergy covers the design and engineering to the ORC system, the manufacturing of the equipment and the overall build of the power plant. As the system will be a closed loop cycle, the plant will not release any vapour into the atmosphere and will boast a small footprint with a minimal visual impact.
The system will be delivered over 18 months, with the commissioning process expected by late 2024. Once in operation, the installation is predicted to save more than 6,500 tonnes of CO2 emissions per year.
Luca Pozzoni, General Manager of Exergy International, said, “We are excited to embark on this journey with GEL. The United Downs project will be a milestone in the development of the geothermal industry in the UK and will give us the valuable opportunity to contribute with our technology and expertise to kick-starting geothermal power generation in the country.”
CEO of GEL, Ryan Law, commented, “Geothermal heat is an untapped renewable resource with the potential to provide huge amounts of energy-efficient and carbon-free electricity and heat. Exergy is well known globally for their competence in the binary geothermal power sector and we are very pleased to be working with them on this landmark project in Cornwall.”
The United Downs Deep Geothermal Power project will be home to the first deep geothermal power plant in the UK. Two directional wells have already successfully been drilled for purpose, with production well being measured to a depth of 5,275 m – the deepest onshore well in the UK – and the injection well to 2,939 m.
As operators are racing to keep their heads above water as the energy transition continues to grow in momentum, instability in energy security is adding fuel to the fire and putting Europe’s energy market in jeopardy. Following the turbulent oil market over the past three years and the sanctions issued against Russia, heads are beginning to turn to geothermal to meet the rising demand for heating systems across the continent.
Scaling geothermal heating sources in Europe could fundamentally provide not only a big stepping stone for meeting environmental targets, but also implement a more established level of energy security regionally. For the first time, policymakers are integrating geothermal movements into frameworks and governments across the continent are increasing funding for pilot projects.
The geothermal scene is hotting up, however, a number of challenges are still holding the industry back from reaching its full potential. High financial barriers appear too big to scale with the current resources available, with international players hesitant to invest in the European market. Collaboration between geothermal experts and the oil and gas community is key to bridging the gaps presented in the market and could be the key component to utilising geothermal energy to ensure energy security.
Read Offshore Network’s full report here to understand the current state of play within the European geothermal industry and hear from experts as they share their insights into how the market can receive the boost it needs to ensure regional environmental targets are met and that energy security is assured.
Odfjell Technology, an integrated supplier of offshore drilling and well operations, and well service equipment including project and engineering services, has deployed its innovative rigless plug and abandonment (P&A) unit for a geothermal pilot project in Tromsø, Norway.
The downhole conditions for further testing and development of a underground heat storage concept were successfully established by using equipment and operational principles from the offshore oil and gas industry.
In co-operation with Xrig and Halliburton, Odfjell Technology played a key role in the planning and execution of this project for Kvitebjørn Varme, the company operating the district heating facility in the city of Tromsø. The overall aim for the project was to progress an underground heat storage concept developed by Ruden AS, which won the innovation prize at ONS in 2022.
Creating a network of subsurface fractures between a centre injector well, along with surrounding production wells placed in a circle around the injector, was the purpose of the project. All wells had been pre-drilled down to 300 m depth and Odfjell Technology’s P&A unit was used to deploy a hydraulic stimulation assembly, sand jetting and fracturing the formation every 5-7 m from 270 to 70 m depth.
Following the establishment of fractures, significant flow communication was confirmed between the injector well and the various producers by performing an injection test, meaning ideal downhole conditions were achieved for further testing the Ruden AS heat storage concept.
With this fracture system in place, Kvitebjørn Varme can now use the excessive heat produced from its plant during summer to warm up water, continuously circulating hot water down the injector well, into the fracture network and up through the producer wells. Heat is then transferred from the hot water to the formation, heating up the rock over time. During winter, cold water will be circulated into the same heated fracture system, transferring the stored heat to the cold water. Hot water is then produced from the production wells, ready to be distributed directly into the district heating network.
Elisabeth Haram, Executive Vice President Well Services at Odfjell Technology, commented, “Odfjell Technology uses its heritage of 50 years in the oil and gas industry to play a leading role in the energy transition. This very exciting and strategically important pilot geothermal project clearly shows how our technology and experience can be applied across the energy mix, and what collaboration and competence sharing between the oil and gas industry leaders and new industry partners in the energy sector can achieve.
“Our full rigless P&A unit offering for offshore SR and P&A operations will launch in the next four to six months. We look forward to working with customers and partners to implement this at scale across the world.”
Elemental Energies has added to its extensive portfolio through the acquisition of Norwell Engineering (North Sea Well Engineering).
This is the second acquisition for Elemental Energies in just five months after it acquired Vysus Senergy Wells, a subsidiary of Vysus Group in December 2022. These are part of a series of strategic acquisitions to cement its position as the leading wells-focused energy consultancy.
The latest deal will increase the company’s total workforce from 75 to 105. Current clients will continue to be supported by the same long-term engineering specialists.
Elemental Energies’ Chairman, Martyn Fear, commented, “Norwell Engineering is a fantastic addition to our business. Their unrivalled experience in delivering major wells projects around the world further strengthens our capability and expands the opportunities to partner with operators, EPCs and other service companies. Their team has delivered more wells than any other independent consultancy, and decommissioned more wells than any of their peers. This impressive track record and reputation for excellence combined with our own extensive in-house capabilities now gives us a competitive edge on a global scale.”
Iain Adams, Managing Director of Norwell Engineering, added, "I’m extremely proud of our team at Norwell Engineering. Over the last three decades we have delivered many industry firsts and been behind multiple flagship projects from drilling wells in world record water depths to delivering more than 500 project managed wells globally since 1989. As we look to the future and how our world-leading expertise can support the transition of the energy sector through decommissioning and to low carbon, joining Elemental Energies is a natural fit and we look forward to integrating our teams to provide best-in-class, independent engineering and project management across oil & gas, decommissioning, CCUS and geothermal projects.”
Elemental Energies is currently working on a number of energy projects including a landmark carbon capture and storage project for the INEOS-led Greensand project, a number of major decommissioning campaigns in both the UK and Middle East, and multiple deepwater field development projects.
Established in 1989, Norwell Engineering has become the go-to wells specialist for large-scale and challenging projects. It has built a reputation supporting governments, regulators and the largest IOCs in delivering expert, independent advice. It has also built a leading reputation in decommissioning, completing its first dedicated well decommissioning project in 1996 and currently acting as project managers for both wells and facilities decommissioning on the UAQ field decommissioning campaign, offshore UAE.
Michael Dafforn, Director of Elemental Energies, remarked, “Elemental is committed to engineering the energy transition, and the expert team from Norwell Engineering will form an integral part of our ambition to build the leading independent consultancy for wells projects, across upstream, decommissioning and low carbon around the world.
“The Norwell team has earned an enviable reputation for successfully managing the largest and most challenging wells projects for clients around the world over the past 34 years, and we are delighted to welcome their wealth of expertise, team and clients to the company.”
Deep geothermal delivery specialist CeraPhi Energy has been awarded the first of its kind geothermal study to undertake the repurposing of offshore oil and gas wells using its proprietary advanced closed-loop system
The study will cover the initial phase of a staged process to determine how retrofitted wells can reduce the carbon footprint of an operating platform.
The project is being led by the CeraPhi subsurface engineering team in collaboration with topside engineering services company Petrofac. The study will use EnQuest’s Magnus Platform as the base case.
The Magnus Platform, formally operated by BP, is one of the UK's largest operating facilities and sits north of the Shetland Islands. Magnus is a fully integrated drilling and production facility with a design capacity of 85,400 bpd of crude oil, 110 mmscfd of gas export and a maximum of 240,000 bpd of produced water.
The study will incorporate the use of CeraPhi's proprietary advanced closed-loop technology, CeraPhiWell, which is designed to fit into old wells to extract heat from deep underground by a downhole heat exchanger. Depending on the operating temperatures established in the study the heat produced could be used as direct power and/or heating or cooling for utilities and other services reducing the overall carbon emissions of the facility.
Karl Farrow, CeraPhi, Founder and CEO, said, “This award is a statement to how the oil and gas industry is transitioning in the decarbonisation of the oil and gas extraction process.”
“If we can use old non-productive wells to produce clean baseload energy, why can’t we make those same wells produce carbon-free energy when they are drilled, reducing the carbon footprint during the oil and gas extraction process and ensuring the maximum use of these assets through a complete energy transition over decades,” Karl furthered.
Craig Nicol, Project Manager, NZTC, said, “We are delighted to be supporting CeraPhi with this ground-breaking project that if proven could become a serious contributor to the renewable energy mix. The industry is facing a significant challenge to decommissioning wells that have come to the end of their production, this novel approach has the potential to extend their life whilst delivering on our net-zero targets.”
Jonathan Carpenter, Vice-President, Petrofac New Energy Services, said, “Our engineering specialists are looking forward to working with CeraPhi on this pioneering study, which has the potential to unlock a completely new way of generating renewable power using existing oil and gas infrastructure. It could be a game-changer in our efforts to decarbonise the oil and gas production process and has wider applicability for clean baseload power as well.”
CeraPhi Energy was founded by a team of oil and gas experts just over 18 months ago, and is driving deep geothermal projects using its proprietary closed-loop technology across the world, with a total of nearly 1.5GW of heat, cooling and power projects under development and more than 5 GW under appraisal.
Page 2 of 2
