For a Better Future
Ilse Bermudez
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As we reflect on the past year, it is clear that the global energy landscape is undergoing a profound transformation. At CeraPhi, we are proud to be at the forefront of this change, driving the transition towards sustainable energy solutions through our innovative geothermal technologies. We are dedicated to finding solutions that will transform the energy system, ensure heat, and power security and create a positive impact on our journey towards a sustainable future.
As CeraPhi expands into an operational phase and with the introduction of CeraPhi Drilling Services, our ESG focus remains unchanged, growth comes with added responsibility, andwearecommittedtoupholdingourenvironmental,social, and governance principles every step of the way. Safety is a very a vital part of this stage and will continue to be in the future. Our goal is and will remain to achieve zero accidents and ensure the well-being of our workforce.
This report provides insight into our vision for success and highlights our progress to date. Our commitment to challenging ourselves daily to find new ways to move forward in a better, more sustainable, and just manner remains. We are dedicated to promoting and have accomplish job transition from different industries, fostering an inclusive, respectful, safe, and secure work environment. We are accredited as a living wage employer and joined the United Nations Global Compact.
I am proudtobe partofthistroopofworldchangers and Iam especially proud of everything we have achieved so far. Together, we will continue to strive for progress and drive meaningful change towards a more sustainable future.
CeraPhi Energy- Saving our planet 1 Megawatt at a time
2023 Highlights
CeraPhi Well Services
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In 2023 CeraPhi Drilling Solutions business was launched, providing the perfect platform to install CeraPhiWell systems.
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The CeraPhi Drilling Solutions business targets deeper well drilling from around 500 metres to 2000 meters. The plan is to access better quality temperatures for next generation ambient loop heat networks.
Demonstrator
CeraPhi Energy produced Geothermal Energy on the Third Energy well site in the Vale of Pickering, Yorkshire with our bespoke CeraPhiTru thermal response unit. With funding from The Net Zero Technology Centre, the aim of the project was to prove the viability of re-purposing existing onshore oil and gas wells which have depleted their reserves, and no longer provide economic benefit. A 3000m former gas well was repurposed to produce geothermal energy with our CeraPhiTru unit, the well was originally drilled for shale gas.
United Nations Global Compact
CeraPhi Energy Ltd joined the United Nations Global Compact initiative — a voluntary leadership platform for the development, implementation, and disclosure of responsible business practices.
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The UN Global Compact is a call to companies everywhere to align their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment, and anti-corruption, and to take action in support of UN goals and issues embodied in the Sustainable Development Goals (SDGs).
Living Wage Employer Accreditation
CeraPhi Energy is now fully accredited as a living wage employer via the Living Wage Foundation and – as part of that – we have pledged to publicly commit to fair pay, have received full accreditation from the Foundation and are committed to annual pay increases linked to the cost of living. By paying the real Living Wage we are committing to making sure all CeraPhi staff earn a wage which is enough to live on.
Principles of Governance
Governing purpose
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Quality of governing body
ESG Reporting
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CeraPhi's mission is to help organizations reachNetZerothroughcleanenergyfrom geothermal solutions. We want people everywhere to have affordable, available, and cleaner energy.
Our governing body comprises 5 directors and 6 advisors, each bringing a unique set of backgrounds, skills, and expertise to the table. This diversity allows usto approach our mission from a variety of perspectives, reflecting the complexity of the challenges we face.
The Board of Directors is responsible for defining our strategic vision and supervising its implementation, taking into consideration the social, environmental, and governance challenges of our business activities. Our advisory board complements the expertise of the directors, providing valuable guidance and input on key decisions.
Together, our governing body reflects a range of nationalities and cultures, reinforcing our commitment to inclusivity and diversity. By drawing on the collective expertise of our directors and advisors, we are better equipped to navigate the complex landscape of sustainable business practices.
We follow the core metrics of the world economic forum in our ESG report and are committed to increase the transparency and extend of our reporting.
Code of Conduct
AtCeraPhi,weplacegreatemphasisonethical conduct and integrity in all aspects of our operations.OurCodeofConductservesasthe cornerstone of our corporate culture, guiding our employees in their daily interactions and decision-making processes. This Code expresses theprinciples of our business ethics and is intended to assist all employees in meeting the high standards of personal and professional integrity required of them.
CeraPhi Energy- Saving our planet 1 Megawatt at a time
Stakeholder engagement
Ethical behaviour
Anticorruption Training
Corruption reporting
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At CeraPhi Energy, we are committed to conducting our business with the highest levels of integrity and ethics. We believe that corruption undermines the trust and transparency that are essential to building a sustainable business and a better world.
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69% of all our employees completed the Anti-corruption and Bribery training. We intent to raise this figure to 100% in 2024.
At Ceraphi Energy we are committed to creating a safe and supportive environment where employees can and have the responsibility to report any unsafe, unlawful, or unethical behaviour they encounter.
To this end, we have established a robust internal reporting system that allows employees to report concerns directly to senior management. All concerns are treated with the utmost confidentiality and respect, andappropriateactionistakentoaddressany issues that are identified.
Risk and opportunity oversight
"We will manage Business and individual project risk and opportunities through our Risk Management process which has six main focus areas: Strategic, Business, ESG, Financial, Reputational, and Operational. Our Risk Register will document risks, appropriate mitigation measures, and key actions to manage risks to an acceptable level. Risks are reviewed on a regular basis and presented at Board level quarterly.
The CEO is responsible for ensuring governance of the overall risk management process for the company.
CeraPhi Energy- Saving our planet 1 Megawatt at a time
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Greenhouse
(GHG
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using the GHG Emissions tools.
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Water Land & Biodiversity Green House Gases
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Our mission is to help decarbonize the world, we aim to be carbon neutral or carbon positive in our operations.
We monitor, measure and report GHG emissions. We are proactively acting on reducing the impact of our activities in the environment and on local communities.
The business is in its growing stage at the moment we are committed to having a control level of emission during 2023.
CeraPhi prioritizes biodiversity conservation and minimizing environmental impact. Our geothermal solution has a small land footprint, emits no pollutants, and generates no waste during operation.
Our main operation in 2023 was to have the proof-of-concept demonstrator, this was done by repurposing an existing oil and gas well and no additional land was affected.
Water is one of the planet’s vital resources and we recognise our part in safeguarding it. That is why our close-loop solution is relevant as is doesn’t rely on subsurface or surface water.
We monitor all water usage in our operations and didn’t require during 2023 any freshwater demand from stress or scarcity areas. Not in a water stress area in accordance with the Environmental Agency classification, we used in Yorkshire 11,000 litres of water purchased for KM8 Demonstrator in 2023.
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ENVIRONMENT, SOCIAL AND GOVERNANCE - 2023
People Dignity and Equality
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We are proud to be an equal opportunity employer, and we strive to ensure that our hiring practices are free from bias and discrimination. We believe that a diverse workforce is critical to our success.
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we are committed to ensuring that all of our employeesarecompensated fairly andequitably.*
Employee by gender
Health and Safety
AtCeraPhi,ouremployeesareourtoppriority. We prioritize their health, safety, and wellbeing, fostering a culture of safety and support.
In 2023 we started operation with the demonstrator and CeraPhi Well Services we have made operations efficient, clean and safe for everyone.
New employees
We are proud to have welcomed 5 new employees to the CeraPhi team in 2022, including one male and four female.
• Fatalities as a result of work-related injury
• High-consequence work-related injuries
• Recordable workrelated injuries
Well, Being
We are accredited as a living wage employer in the UK by the Living Wage Foundation.Allouremployees arepaid a fair wage.
*We are not currently reporting pay data by employee category, we recognize that pay equality is an important issue, and we are committed to reviewing our decision on an annual basis. We believe that every employee deserves to be paid based on their skills, experience, and contributions, regardless of factors such as gender, race, or ethnicity. We are dedicated to creating a culture of transparency and fairness around pay.
CeraPhi Energy- Saving our planet 1 Megawatt at a time
Just Transition
ENVIRONMENT, SOCIAL AND GOVERNANCE - 2023
Risk for incidents of child, forced or compulsory labour
Skills for the future
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We endorse the International Labour Organization Guidelineson Just Transition and believe in inclusive, and environmentally sustainable economies and societies. CeraPhi creates green jobs in the energy transition space with a solution envisioned to bring energy and heat security.
We have a zero-tolerance approach to child labour and modern slavery and are committed to the principles of the Modern Slavery Act 2015, protecting, and respecting human rights while ensuring that there is no modern slavery and human trafficking in our supply chains or any part of our business.
In 2023 we published our first modern slavery statement, we aim to ensuring that staff involved in buying or procurement and the recruitment and deployment of workers receive training on modern slavery and to build relationships with our suppliers to ensure they comply with our values and that they are aware of our zero-tolerance policy to modern slavery.
We believe that investing in our employees' skills and knowledge is essential to building a sustainable and successful business. We are committed to providing our employees with the training and development opportunities they need to grow, learn, and thrive in their roles. While the level of training is not yet material enough to report on, we are committed to trackingandreportingonourtraininginitiatives as we continue to grow and exp. and our operations.
CeraPhi Energy- Saving our planet 1 Megawatt at a time
Climate change caused byglobalwarmingisaseriousissue and at CeraPhi Energy
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ENVIRONMENT, SOCIAL AND GOVERNANCE - 2023
Prosperity
At CeraPhi, we are dedicated to fostering positive economic growth in the regions where we operate. We prioritize minimizing any adverse effects that our operations may have on the surrounding community and environment.
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We take pride in our efforts to generate employment opportunities and support local suppliers.
Our commitment extends to conducting business with transparency and integrity. We actively engage with local governments, communities, and stakeholders to ensure our operations align with their priorities and needs.
Employment and wealth generation
In 2023, CeraPhi welcomed six new team members, comprising five male and one female employee. Although we witnessed five departures throughout the year, with four male and one female leaving the
company, we are pleased to note a net increase of one employee.
We remain firm in our commitment to promote gender diversity and inclusivity. At CeraPhi, we believe in the significance of diversity in driving our success, acknowledging that each employee brings unique perspectives and contributions to our organization. We are dedicated to cultivating a welcoming and inclusive workplace environment for all members of our team.
Economic Contribution
Revenue - £497,970
Operating Costs
£1,043,003 (Includes Employee Costs)
Employee Wages & Benefits
£709,713
Payments to Providers of Capital
Payments to Government
Community Investment
£0
£237,795
£29,102
Financial assistance received from the government
£40,000 Grants in 2023.
Financial investment contribution
Total Capital Expenditure minus depreciation asat31/03/2023was £412,000.Thecompany deployed capex to design and build the companies CeraPhiTru technology demonstrator which was to be deployed at the companies demonstrator site in North Yorkshire in Summer 2023 aimed at providing a commercial demonstrator project of the CeraPhiWell system technology for generating clean baseload heating and cooling from our world-class advance closed loop system which will help to decarbonize heating and cooling globally for anyone everywhere supporting businesses reach net zero, contributing to global sustainable development goals.
Total Capital Expenditure in the year
£412,000
The depreciation in 2022 was £1,757
CeraPhi Energy- Saving our planet 1 Megawatt at a time
Share buybacks / dividend payments
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Therehasbeennosharebuybacksordividend distributions to date due the business being a start-up under three years old and still in its growth stage selling equity for investment. The company has established an Employee Share Incentive Scheme as part of the employee engagement process. In the long term when the business is established in the market with secure revenue streams, there will be potential to start paying shareholders dividend based on overall financial performance.
Innovation of better products and services
Total R&D expenses (£) Total costs
research and development
For the year ended March 31, 2023 there was a Corporation Tax refund to CeraPhi Energy Ltd of £258,766. The HMRC Approved R&D Costs in relation to this refund amounted to £1,028,182.18
We are committed to investing in innovative solutions and technologies to support our missionofsustainableenergyproduction,and the R&D credits allow us to reinvest these savings into further innovation and development. We appreciate the support of the HMRC in recognizing our R&D efforts and contributing to our financial sustainability.
Community and social vitality
Total
tax paid
CeraPhi Energy upholds its commitment to abide by all tax laws and regulations. We ensure that our tax payments and reporting are accurate and timely. In the fiscal year ending on March 31, 2023, we received a Tax refund of £380,296 processed in accordance with the applicable laws and regulations.
CeraPhi Energy- Saving our planet 1 Megawatt at a time
