geothermal energy challenge fund

Geothermal Energy Challenge

Fund

Johann MacDougall

Scottish Government

Scotland’s geothermal potential

• Study into the potential for deep geothermal energy

in Scotland

Volume 1

http://www.gov.scot/Publications/2013/11/2800

• Identified potential in Scotland’s minewater, hot

sedimentary aquifers, hot dry and hot wet rocks.


£250,000 Challenge Fund

• The minimum award is £10,000 and the maximum

£50,000.

• Funding will be delivered as de minimis State aid

funding or under Article 25 of the General Block

Exemption Regulation.

• Applicants must be part of a partnership or

consortium.

• Closing date for applications is 30 April 2015.

• Applicants will be notified in June 2015.

Objectives• Support projects exploring Scotland’s potential geothermal

energy capacity to provide heat utilising minewater, hot

sedimentary aquifers, hot dry and hot wet rocks);

• Encourage the development of proposals for the utilisation of

geothermal energy to local community benefit, achieving

measurable carbon reductions (without sacrificing proper

consideration of the impacts on the local environment), which

are sustainable on a long term basis; and

• Support the development of future viable delivery models,

emphasising the requirement for projects to demonstrate

commercial viability as part of the energy solution in local

developments.

Assessment of applications• Applications need to focus on:

– Technical aspects of locating and analysing geothermal

resource;

– Exploring the potential impact on the environment of

abstracting that resource;

– Engagement with local community; and

– Exploring commercial viability of the identified geothermal

resource.

• Applications will be assessed against the LCITP criteria and

how well they meet the Challenge Fund’s objectives,

minimum scope requirements and applicant criteria.

More information

• The data behind the conclusions of the study in

respect of the areas most likely to hold deep

geothermal resources in Scotland is available at


• Questions about the Challenge Fund?

Phone 0845 607 8787

Or e-mail [email protected]


mailto:[email protected]

• Public Sector• Investment

• Community• Private sector

Scottish Enterprise

HIE/SG

Scottish Futures

Trust

Scottish Government

Low Carbon Infrastructure Transition Programme

catalyst development demonstrator

low carbon and/or renewable electricity and heat generation

local energy economies

heat recovery (e.g. district heating)

energy storage and distributed energy systems

hydrogen

demand side management and active network management

innovative/local finance solutions and investor readiness for low carbon projects

energy efficiency (e.g. non domestic building retrofit)

resource efficiency

materials recycling and re-use.



For further information contact:

[email protected]

mailto:[email protected]

Geothermal Opportunities in Scotland

Uisdean Fraser

Managing Director

Synergie Environ Ltd

0141 263 0020

[email protected]

David Townsend

Founder & Managing Director

Town Rock Energy

0784 191 0719

[email protected]

Background – Synergie Environ

• Glasgow based energy and engineering consultancy;

• Experience in the development of a broad range of technologies andprojects including:

AD (whisky, food process and waste sectors);

Biomass;

Low carbon heat from various sources including geothermal, waste water, process heat;

District Heating and mapping heat demand to source.

• Cover feasibility through planning to construction and commissioning;

• Experience includes large housing, industrial, universities,manufacturing and process, public sector.

Background – Town Rock Energy

• Edinburgh based geothermal energy consultancy;

• Experience in the identification and evaluation ofgeothermal resources in Scotland, including:

Flooded mines;

Sedimentary aquifers (HSA’s);

Mines and aquifers for thermal storage.

• Experience designing geothermal district heating systemsfor technical and economic feasibility;

• Ideally positioned to become Scotland’s first geothermalenergy company, with export potential.

Setting the Scene for Geothermal

• Classification of geothermal resources based on enthalpy:

(Younger, 2014)


• Classification of geothermal resources from the RHI:

Shallow (Open Source Heat Pump) – less than 500 m depth

RHI = 8.7 p/kWh for the first 1314 hours then 2.6 p/kWh

Deep (Pure Geothermal) – greater than 500 m depth

RHI = 5 p/kWh

• More depth generally more energy resource - but at what cost?

• Geothermal gradient – 22-40 °C/km

• Scotland’s Midland Valley = ~ 30 °C/km

• Drilling cost increases substantially with depth.

• Substantial, sustainable and as yet untapped heat source;

• Abandoned mines present a particular opportunity for open source heat pump systems.


• Heat pump technology: exploits year-round temperature

differential between above-ground and below-ground. Heat pumps

can deliver heating or cooling, as required.

Open loop – groundwater is pumped through heat pump or via

heat exchanger. Includes mine-water resources.

Closed loop – heat recovered either by circulating refrigerant

directly or indirectly through heat source.

NOTE: Closed loop heat pump systems are unlikely to be eligible for the

Geothermal Energy Challenge Fund – not innovative enough to

require a government sponsored feasibility.

NOTE: Heat pump systems below 250 kW preferably closed loop

Heat pumps

• Typical closed loop, indirect geothermal heat pump

Heat pumps

• Delivered heat typically @ 35-45oC but 60oC is feasible.

• Coefficient of Performance (COP);

Heat Pumps

Mine-water Heating & Cooling Networks – Heerlen NL

• 2007 completion using 4 abandoned and flooded mines (varying temperature)

• Very energy efficient buildings;

• 33,000m2 residential, 3,800m2 commercial, 11,500m2 healthcare, 4,800m2 public;

• 50% CO2 reduction;

• Supply guaranteed by a polygeneration concept existing of electric heat pumps in

combination with gas fired high-efficiency boilers, and heat/coolth storage;

Scotland’s geothermal resources

• Abandoned mines:

o Depths up to 820 m;

o 4,800 km2 total mined area in Scotland;

o Sustainable abstraction at 20-100 litres / sec

o Average water temperature 17 oC but temperatures as low as 10 oC are certainly exploitable

o Indicative energy resource of 2.5 MW/km2 = 12 GW (about 40% of Scotland’s current peak load!);

o Mine sites often re-developed – i.e. adjacent to heat loads;

o Open loop heat pump

o Correlation of mine-water resources and fuel poverty

Scotland’s geothermal resources• Abandoned mines:

Figure 18 from 2013 BGS report volume 2 showing:

Depth to base of mine workings:

Blue – 20-100 mGreen – 100-300 mYellow – 300-500 mOrange – 500-700 mRed – 700-820 m


• Aquifers (HSA):

o Depths up to 3km – more costly

o Water temperatures 20-90 oC

o Poorly understood / quantified energy resource – application of Town Rock Energy exploration techniques will improve understanding

o Limited to sedimentary rocks – significant overlap with areas of heat demand in the central belt

o Open loop – temperatures greater than 85 oC can be considered for electricity generation in combination with direct heat use

o None in Scotland yet (Southampton is only UK project)

o Big opportunities for long-term development – exploratory boreholes required.


• Aquifers (HSA’s)

Figure 25 from BGS report

volume 2: Rock units which

on geological grounds

appear to have good HSA

potential. The Devonian and

Carboniferous lavas of the

Midland Valley do

not have HSA potential, but

locally they may overlie

sedimentary strata

that do.


• Engineered Geothermal Systems (EGS):

o Depths of as much as 6km but can be shallow– even more costly!

o Water temperatures up to 250oC;

o Poorly understood/quantified energy resource

o Applicable to any rock type – some overlap of hot (HHP) granites with heat demand in Aberdeenshire;

o Open loop;

o No existing UK projects – proposed Cornwall electricity generation demonstrator has been unsuccessful in raising funds for drilling.


• Engineered Geothermal Systems (EGS):

Figure 31 from 2013 BGS report v2: Onshore

parts of Scotland considered most likely to

overlie buried High Heat Potential (HHP)

granite intrusions.

Use of downhole engineering

techniques to develop geothermal

resources from rocks at depth that are

insufficiently permeable to otherwise

support geothermal exploitation

NOTE: Terms Hot Dry/Wet Rock

(HDR/HWR) no longer used – EGS is

the accurate term.

EGS Site: Eastgate Boreholes (2004 and 2010)Contributed by Professor Paul Younger, University of Glasgow

Newcastle Science Central

Geothermal BoreholeUK’s deepest-ever city centre borehole (1,821m) -

(1,821m) - drilled 2011 with funding from DECC,

DECC, BGS, and Newcastle Science City

Key Issues & Success Factors / Challenges 1

• Heat demand - site viability for large scale district heating;

• Scope of complimentary heat sources to match demand profiles;

• Planning and regulatory constraints;

• Geochemistry of mine-waters important;

• Operational temperature of district heating scheme greatly affectsheat pump COP and economics;

• Environmental constraints on mine-water disposal – re-injection themost viable option;

• Liability implications of developing abandoned mines;

• Coal Authority is a key stakeholder.

Key Issues & Success Factors / Challenges 2

• District heat network (DHN) –

Economies of scale,

Integration with other energy sources,

Marketability?

• Pre-drilling uncertainty in energy resource and overall project ‘bankability’’

• Benefits of a collaborative approach;

• Public sector heat demand best ‘starting block’ for most projects;

• Mine waters particularly attractive:

Resource availability,

On-going pumping costs,

Local heating loads – correlates with areas suffering from fuel poverty

Existing scheme – Shettleston (Glasgow)

• Commissioned in 1999;

• Serves 16 residential units over 1,600m2

• Open loop configuration;

• 100m borehole pumps mine water at 12oC directly through heat pump

delivering output at 55oC, then re-injects at shallower depth

• Feeds DHW and space heating (supplemented by immersion)

• Capital grant funding was available

• Cost-competitive over gas

Larger-scale opportunities – Glasgow’s East End

Figure 22 from BGS

report volume 2: 3D

model of mined coal

seams (yellow and

blue surfaces), mine

shafts (red

sticks) and mine

roadways (green,

blue and pink),

beneath Glasgow‘s

East End. Viewed in

Virtalis/BGS

GeoVisionary

software.

Larger-scale opportunities - Shawfair

• 4,000 homes, 63,200m2 of commercial land, 72,800m2 ofindustrial land and 7,800m2 of civic space over 18 years;

• Estimated total peak heat load of 87MW – residential elementat 3-4MW per annum

• Monktonhall mine – potential for delivered heat fromgeothermal;

• Adjacent to planned major EfW facility and sewer flows;

• Potential economies of scale and integration of energy sources;

• Keen developer.

Larger-scale opportunities - Heartlands

• Former Polkemmet mine, West Lothian;

• 5,000 new homes over 20 years, 140,000m2 business park;

• Adjacent to large areas of local authority housing;

• Estimated total peak heat load of 10MW;

• Potential 34MW heat from geothermal (mine);

• Also close to planned new EfW and sewer flows;

• Potential economies of scale and integration of energy sources;

• Keen developer.

Developer concerns & potential barriers

• Carbon reduction and building standards driver;

• Risk aversion to perceived ‘novel’ technology;

• Integration with alternative heat sources integral, but benefits of

geothermal integration not well understood by developers;

• Interest in investment and ongoing ownership;

• Lack of investment to date;

• Marketability to home-builders;

• Acceptability to home owners / occupiers / buyers;

• Difficulty in engaging public sector in collaboration?

Further information

GEOTHERMAL RESOURCES IN SCOTLAND - http://www.gov.scot/Publications/2013/11/6383

MINEWATER RESOURCES IN SCOTLAND - http://www.gov.scot/resource/doc/982/0056515.pdf

TECHNOLOGY OVERVIEW -

http://www.researchgate.net/publication/233933748_Mine_water_as_a_resource_space_heating_a

nd_cooling_via_use_of_heat_pumps

EXISTING SCOTTISH SCHEMES -

http://p57313.typo3server.info/fileadmin/MIWR/content/redakteure/data/Presentations/Banks_-

_Existing_Open_Loop_Minewater-Sourced_Heatpump_Schemes_Scotland.pdf

CASE STUDY - http://www.geothermal-energy.org/pdf/IGAstandard/WGC/1995/1-jessop2.pdf

ENTHALPY CLASSIFICATION OF GEOTHERMAL RESOURCES –

YOUNGER, P. 2014. Hydrogeological challenges in a low-carbon economy. Quarterly Journal of

Engineering Geology and Hydrogeology. v.47;p7-27


http://www.gov.scot/resource/doc/982/0056515.pdf

http://www.researchgate.net/publication/233933748_Mine_water_as_a_resource_space_heating_and_cooling_via_use_of_heat_pumps

http://p57313.typo3server.info/fileadmin/MIWR/content/redakteure/data/Presentations/Banks_-_Existing_Open_Loop_Minewater-Sourced_Heatpump_Schemes_Scotland.pdf

http://www.geothermal-energy.org/pdf/IGAstandard/WGC/1995/1-jessop2.pdf

www.scottish-enterprise.com

Geothermal Energy

Challenge Fund

Charles Broadfoot and Bruce AinsleyInnovation Specialist

Application Advice and Guidance


Meeting the Challenge Fund Objectives

Support feasibility studies

• Explore potential geothermal energy capacity from:• Mine water• Hot sedimentary aquifers• Hot dry and hot wet rocks

• Local community benefit, sustainable on a long term basis• Development of future viable delivery models


Fit with Project Scope

Clear case for commercial and community benefit

• 1 or more locations• Assessment of the baseline data• Description of the preparation of a provisional borehole design• Risk strategy• Outline method and technologies to be used• Assessment of the long term supply and demand• Potential heat delivery models• Performance outputs• Indicative financial models• Techno economic feasibility and environmental impact

Detailed description of the scope of the proposed feasibility study, reflecting theSetting, depth, and technological complexities of the location.


Shaping the Consortia

Teams with credible experience and access to deliver project outcomes, will need at least two of the following:

• Community group, • Registered charity, • Community benefit society, • Community interest company, • Local authority, • Registered social landlord, • Academic institution, • Heat supplier, • Third sector business• Commercial business


Funding and support

1. Notified scheme - General Block Exemption Regulation (GBER) Article 25

50% support, rising to 70% for micro SMEs

Two forms of funding support

2. De minimis State aid

Capped at €200,000 in a 3 year periodCurrently £146,000.100% intervention rate

Minimum award will be £10,000 and the maximum award will be £50,000


Completing the application

Cover the project scope• Provide specific detail• Experience and credibility of the consortium• Identify the risks and detail mitigation• Additionality: why do you need support?• Other funding support• Detail the costs with supporting evidence• Demonstrate your points• Research the examples • Use the links to the references


Questions:

geothermal energy challenge fund

Government & Nonprofit