Ceraphi EnerGeo Newsletter

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NOVEMBER 2023

ISSUE

FEATURES > CEO message

> Advisory Board News

> Global Update

> Staff News

> ESG Commitment

> Events

> Awards

> Our Progress

> Company Update > Projects Update

> In Memoriam

CEO Message Welcome to the twelfth edition of the CeraPhi Energy newsletter Karl Farrow – CEO CeraPhi® Energy

Well, summer is over and we’re starting to feel the first frosty mornings in the UK. For most people, thoughts are inevitably turning to looming energy costs over the winter months.

In recent years, we’ve all been navigating the global economic crisis and conflict in Ukraine. These factors have driven energy costs through the roof. Now with increased conflict in the Middle East, any attempted recovery plans may be short-lived. The terrible situation in Israel poses particular ramifications for countries such as Greece, who are dependent on oil and natural gas imports from the region.

This should all act as a wakeup call to governments around the world about the importance of energy security and resilience. Decarbonisation of domestic and industrial infrastructure has never been more necessary. The role that deep geothermal can play in decarbonisation and its tremendous scalability keeps everyone at CeraPhi Energy working hard.

Our commercial demonstrator has been a great success over recent months, allowing us to show that low temperature ambient networks can and will play a major role in distributed heat networks. We’ve successfully demonstrated that deep wells provide significant energy capacity on demand, whilst being cost effective, scalable and suitable for a wide variety of uses.

As we head into darker mornings it’s important to look for the highlights around us. At CeraPhi we are so very fortunate to have a highly skilled and dedicated team. I am really proud that our people are our biggest asset as we forge ahead with our ambitious projects, aiming for a better, brighter, decarbonised future for us all.

2

Global Update Greenvale

CeraPhiWell technology is to be used in North-West Australia.

The region is already a hotspot for vanadium exploration,

Sydney-based Greenvale Energy has been exploring

an element used in the development of grid-scale batteries.

geothermal prospects and are planning to use our CeraPhiWell

Millungera Basin has target depths of 2.5 km to 3 km and has

technology on projects in the Millungera Basin. Following

large-scale regional power requirements.

successful completion of our feasibility study in collaboration with Greenvale Energy in North Queensland, we are now

Zoe Stackhouse, Geothermal Manager at Greenvale Energy

planning a project together at Millungera Basin.

visited CeraPhi in the UK recently to have a site visit at the KM8 Demonstrator. Greenvale Energy Chief Executive Mark Turner

Previous studies found potential for 611,000 petajoules

said, “We have confidence in the CeraPhiWell technology,

of inferared geothermal energy. One petajoule is broadly

confidence that we can take to the Millungera Basin…to unlock

equivalent to 278 gigawatt hours.

the area’s immense geothermal potential”.

3

News from USA

by Higinia Torregrosa CeraPhi Energy has been asked to conduct a feasibility study, focusing on the potential integration of our CeraPhiWellTM technology in a large producing oil field in Argentina. CeraPhi’s

CeraPhi’s presence in US Events.

team is currently reviewing the data provided and conducting analysis. As we move forward, we look forward to sharing

CeraPhi had an enriching experience attending the PIVOT

more updates with you and are excited about the possibilities

2023 In-person Closing Event, which took place on October

for this collaboration.

6, 2023, at Halliburton’s headquarters in Houston. PIVOT is an annual event, bringing together leaders and change-makers

CeraPhi is currently engaged in two feasibility studies for

committed to shaping the future of geothermal energy.

prominent institutions in Boston, one of those being the

This year’s event spanned a month-long series of activities,

Museum of Fine Arts (MFA). These studies will assess the

culminating in a remarkable in-person closing event.

commercial viability of integrating advanced geothermal systems into the existing heating infrastructure of these

The day featured focused and insightful panel discussions

iconic structures.

highlighting the progress made over the past year and outlining the exciting paths forward. As advocates for innovation and progress in the energy sector, CeraPhi values the collaborative spirit fostered by events like PIVOT. CeraPhi is a proud member of the vibrant start-up community at Greentown Labs Houston, and is gearing up for active participation in The Greentown Labs Houston Climatetech Summit 2023 on November 1, 2023. Greentown Labs, with incubators in Houston, TX, and Boston, MA, serves as a collaborative hub for over 200 start-ups, each contributing groundbreaking climate tech solutions.

The Climatetech Summit is a highlight on our calendar,

The goal is to decarbonise heating system. CeraPhi is

representing a convergence of innovation and vision within the

exploring innovative solutions to reduce carbon footprints and

climatetech landscape. This annual event, held at each incubator,

increase energy efficiency. By leveraging the cutting-edge

is designed to provide a platform for knowledge exchange and

CeraPhiWell™ technology, various geothermal system design

collaboration. Attendees can enjoy inspiring keynotes and sessions

concepts are being evaluated to ensure optimal performance

featuring leaders from climate tech, finance, policy, and justice

and environmental impact.

domains. Additionally, the summit offers invaluable networking opportunities with key pioneers driving climate action.

This feasibility assessment is part of a collaborative project between the Boston Green Ribbon Commission (GRC), a network supporting the implementation of the City of Boston’s Climate Action Plan, and CeraPhi Energy, to explore advanced geothermal solutions for individual large property owners and developers that support the City of Boston’s goal of carbon neutrality by 2050.

4

EGS Commitment UN Global Compact Network UK Ilse Bermudez represented CeraPhi Energy at the UN Global Compact Network UK Annual Summit in October.

Across two days, the Summit brought together leaders from business, government, and civil society for solutions-based discussions on the most pressing ESG challenges facing companies today and considered how businesses can balance ethical and sustainable practices to maintain profitability and competitiveness.

Ilse enjoyed keynote speeches, fireside chats, and panel discussions, hearing about up-to-date best practices on issues such as decarbonisation, transformational governance, sustainable finance, new reporting requirements, and supply chain resilience.

Ilse said, “It’s alarming how little impact the UK are making by comparison to other places. It was clear from the day that we have a long way to go, as we’re only achieving 15% of the initial set targets. However, it’s inspiring that there are many people doing amazing things towards the goals and striving to meet the targets”.

CeraPhi Energy are bold and ambitious in our plans to achieve these targets and we are actively creating a solution for a net zero energy source.

5

Awards CeraPhi Energy are pleased to announce that we’ve recently been recognised in five different awards categories.

The Eastern Daily Press Business Awards recognises the best companies, the best strategies and the best people that make up Norfolk’s business community. Ceraphi is proud to be a finalist in the Environmental and Sustainability Award category. https://www.edpbusinessawards.co.uk/

The EEEGR awards and end of year dinner brings together the East of England’s business community to celebrate the amazing achievements and milestones of our local companies, individuals and EEEGR members. https://eeegr.com/events/eeegr-awards-dinner-end-ofyear-celebration-2023/

The Spectator’s prestigious Economic Innovator of the Year Awards, in partnership with Investec, are now in their sixth year. These Awards celebrate the shining talents of British entrepreneurship and CeraPhi Energy are proud to be

Finally, we were awarded the Defence Employer Recognition

recognised as a finalist in that category.

Scheme Silver Award by the Armed Forces Covenant, and this

https://www.spectator.co.uk/innovator/

award was recognised at the Ministry of Defence Employer Recognition Scheme Silver Awards Dinner on 19th October.

The British Small Business Awards shine a spotlight on the resilience, ingenuity, and accomplishments of Britain’s small and medium businesses. CeraPhi Energy is proud to be shortlisted in the ‘Most innovative business idea of the year’ category. https://britishsmallbusinessawards.co.uk/

6

Company Update

CeraPhi Drilling Solutions is born!

CeraPhi Energy has launched its Drilling Solutions business,

to install fully integrated heat network systems through

providing a platform to install our CeraPhiWell systems.

its Drilling Solutions Business for the USA market within the first quarter of 2024. By the end of 2024, we hope to

Paul Fowler, CeraPhi Drilling Solutions Director said: “This is

be providing fully integrated system networks to projects

a great opportunity to provide a solution to scalable use of

around Massachusetts, Connecticut, and New York State.

the abundance of thermal energy from the heat beneath our feet. The deeper we go, the hotter it gets and drilling

CEO Karl Farrow said “It’s a natural go-to market strategy for

to a higher quality heat provides significant benefits for the

the deployment of our CeraPhiWell solution. It will manage

future of heat networks and the resilience of those systems

drilling risk and provide an integrated delivery solution taking

we install”.

the heat directly to our customer interconnections and offtakes. It will enable them to connect their heat pumps

The CeraPhi Drilling Solutions business plans to target

directly to a higher quality and more efficient source of

deeper well drilling from around 500 metres to 2000 meters.

energy”.

The plan is to access better quality temperatures for next generation ambient loop heat networks. By increasing the recoverable temperature, it reduces the temperature differential. This increases the coefficient of performance of the system, reducing cost and increasing operational margins and system performance.

CeraPhi has started drilling on projects within the UK. Over the coming months we will invest extensively in our capacity

7

Projects Update KM8 Demonstrator Project Update

CeraPhi’s KM8 demonstrator project launched in September,

UK alone, there are hundreds of oil and gas wells that could

and we’re delighted to announce that it’s been a huge

be repurposed for geothermal. We’re keen to run as many

success.

thermal response tests as possible to confirm the geothermal resource availability and to further refine our modelling.

The main objective of the demonstrator project was to prove the repurposing of an oil and gas well with a closed-loop

The KM8 site welcomed hundreds of visitors,, comprising MPs,

geothermal system for heat production. We are also hoping

local authorities, governing bodies, landowners, and senior

to validate our heat modelling and are very excited to see

industry personnel. Visitors have been able to see the entire

that the field data matches our estimates with a high degree

set up including our Thermal Response unit, where they are

of accuracy. We are now running a final thermal response

able to feel radiators and see a functioning heat pump. Their

test to collect additional data and monitor overall system

response and feedback have been overwhelmingly positive.

performance.

If you would like to witness CeraPhi’s heat extraction The information gained from the Demonstrator will prove

technology first-hand, please contact:

invaluable for future systems improvements and for the

Holly.Harvey-Perdicou@ceraphi.com

delivery of commercial geothermal heating projects. In the

8

Collaborative Working with Third Energy Russell Hoare of Third Energy discusses working with CeraPhi Energy on the KM8 Demonstrator project.

In November 2019, Third Energy ceased gas production from our wells in North Yorkshire. Since then, we’ve been on a mission to find a renewable and sustainable use for our energy assets, consisting of twelve redundant gas wells and a significant subterranean pipeline.

Without significant investment, the production levels from the gas wells were not economically viable. However, we were producing increasing amounts of heated fluids, which led us to consider geothermal energy. In early 2020, we started looking for partners to develop this side of the business.

Our search soon brought us to CeraPhi Energy. CeraPhi helped us to determine the geothermal potential of our wells and confirmed that some of the concepts we were considering (such as agricultural heating and community heat networks) were viable.

When CeraPhi were successful in their NZTC grant for a demonstrator project, we were keen for them to use one of

redundant oil and gas wells for geothermal energy was possible. In fact, if we were able to prove viability, it could be argued that such repurposing should be obligatory on licensees as opposed to filling the wells full of cement and walking away.

Our collaboration with CeraPhi on the demonstrator project could not have gone better. Having prepared the site for CeraPhi, we handed it over to their team in early August.

Within weeks we were seeing commercial-scale geothermal heat produced consistently and reliably from the KM8 well.

With the visitor facility that CeraPhi set up, we have been able to bring in local community leaders, councillors and potential heat users and the response has been overwhelmingly positive. Having spent several years trying to convince people of the advantages and viability of geothermal heat, being able to show the working system enabled by the CeraPhi unit has made a tremendous impact.

our wells for the pilot. It would help us to prove to ourselves, potential customers and regulators, that repurposing

9

Wrexham University

CeraPhi Energy is increasingly being approached by

UK Structured Finance Ltd said, “We are delighted to be

organisations, especially those with older buildings, looking

working with CeraPhi Energy on a geothermal solution to the

to decarbonise.

Recently, UK Structured Finance Ltd

heat need at the Wrexham University campus. There’s a belief

approached us to prepare a viability study to decarbonize

that geothermal heat is either too complex or too expensive

heat and electricity at Wrexham University, with the aim of

to obtain in the UK and we can’t wait for this literally ground-

helping to reach Net Zero targets.

breaking technology to come into its own for us here”.

The University currently uses natural gas, therefore the study will evaluate the viability of decarbonising the existing heating system by replacing it with a CeraPhiWell geothermal system.

10

Advisory Board News Ken Seymour BSc PhD MBA CEng Energy Transition Adviser – Well Repurposing Ken Seymour holds a first-class BSc honours degree &

rise to a geothermal gradient of 30 degrees Celsius per 100

a PhD in Rock Mechanics. He has worked with IOCs and

meters from the surface.

independent E&P companies for over 40 years as Drilling

Therefore, a typical three-kilometre oil and gas well in a

Engineer, Drilling Superintendent, Drilling Manager, General

sedimentary basin will have a bottom hole temperature of

Manager, Director and Adviser in the North Sea, China,

circa 90 degrees C and provides a pathway to bring this heat

Pakistan, Angola, Nigeria and Indonesia. He obtained an

to surface. This is a potential thermal power plant that can

MBA in 1994 from the Aberdeen Universities, has authored

be used for domestic or commercial heating.

over thirty presentations on well engineering and upstream management.

Ceraphi has engineered a Closed Loop geothermal design that can be used in new wells or to convert disused oil/gas

He is currently focused on the role of geothermal energy in

wells in geothermal power plants for local use of heat energy.

the energy transition and joined the Ceraphi Advisory Board

This provides continuous thermal power with a low-pressure

in August 2023.

circulating system. This system and the associated thermal modelling were verified on the Third Energy KM8 well by the

Converting Old Oil/Gas Wells into Geothermal Power Plants

Ceraphi Demonstrator. This well was converted by running

Globally there are thousands of disused oil/gas wells

over 2 km of High-Density Polyethylene (HDPE) tubing inside

which must be permanently abandoned. The cost of these

a 4.5 inch casing string, utilizing a light weight drilling unit

abandonments is considerable and falls upon operating

and circulating down the annulus and up the tubing into

companies or governments. Each of these wells is a carefully

a customized (CeraphiTru) geothermal testing unit. This

engineered pressure vessel that provides a ready made

system extracts heat in a closed system, no reservoir fluids

conduit for geothermal heat, a means of value generation

are produced. It is totally environmentally sustainable.

and an opportunity to defer abandonment liabilities.

The test confirmed that heat transfer for closed loop coaxial systems can be accurately modelled and proved that it is

Geothermal energy has been exploited since the early

possible to convert a redundant oil or gas well into a thermal

1900s but has been confined to areas of extremely high

power plant producing commercial quantities of heat.

geothermal gradients, near plate margins and in areas of volcanic activity, with a primary focus electricity generation.

This geothermal success opens the door to well repurposing

Attempts to exploit geothermal energy anywhere have been

and asks the question, “ What other opportunities exist in

confined to ground source heat pumps with wells limited

redundant wells?” Ceraphi is now evaluating Carbon Capture

to a few hundred meters. Exploitation at greater depths is

and Storage(CCS) and natural gas storage.

subeconomic because of the geological risk and high cost of drilling. Geothermal energy has been the Cinderella of the green renewable energies even though it can provide 24/7 baseload energy.

The centre of the earth is as hot as the sun at circa 6,000 degrees Celsius. There are three main sources of this heat: (1) heat from when the planet formed which has not yet been lost; (2) frictional heating, caused by denser core material sinking to the centre of the planet; and (3) heat from the decay of radioactive elements. The earth is slowly cooling, and this heat is migrating to the surface and generally gives

11

Staff News Spotlight on Zach Chilvers As a Senior Process Engineer, I design and improve our processes, conduct well modelling (which involves calculating the outputs from potential wells) and design new wells. I’m also involved in CeraPhi’s R&D, researching new materials, processes, and technologies to optimise the outputs we can achieve.

What are you most proud of about your time at CeraPhi so far?

Without a doubt I’m most proud of getting the KM8 Demonstrator up and running and extracting energy. I have been involved in leading the technical side and operations of this project. This has meant creating the programme of works to convert it from a fracking well to a geothermal well. I designed the topside processes and have also been physically involved by fusion welding the 2,000m of HDPE together and running the thermal response testing. It’s the thing I’m most proud of in my career so far, actually.

Where do you see yourself in 5 years?

Zach Chilvers has worked for CeraPhi for nearly a year and

Hopefully on a site somewhere a bit more exotic than

a half as a Senior Process Engineer. The team are incredibly

Yorkshire! In all seriousness, I would hopefully be leading

lucky to have him and here he tells us a little more about his

a team of engineers here at CeraPhi as an Engineering

work.

Manager. However, I’d want to still be very hands-on as it’s important to me to still be doing site work myself rather than

What is your background/career history/education/

just tellingother people what to do!

training?

I did a master’s degree in mechanical engineering at university, graduating in 2014. My background before starting at Ceraphi was in the manufacturing industry, where I was a Process Engineer at Johnson Controls for 8 years.

12

eraPhi Energy is growing. We have been lucky to appoint two wonderful new additions to the eam; Michelle Nicholls has joined as a project coordinator and Barry Read has joined as Geology and Proposals Lead.

Michelle joins us from a varied career, most recently in marine engineering. Barry was a Mudlogger and Seismic Engineer for 0 years around the world following his BSc in Geology at Aberystwyth. oth are avid learners; Michelle is currently studying for a BA in Business Management and Barry has recently completed studs in Renewable Energy and Climate change. We know their combined knowledge experience to CerHer PhD workand will focus on multiwill wellbe padinvaluable developments Phi’s growth. and how they affect one another’s performance based The whole team welcomes Michelle and Barry and we all look forward toontheir contributions over the coming months and year operational times and spacing. She hopes to use her

Paige Draper to start PHD.

machine learning knowledge to create a control module to determine optimum well placements for projects.

Paige says, “We have a strong technical team who I’m able to bounce ideas off. I’m grateful for the moral support from the wider team and, of course, the financial support from Paige has been with CeraPhi for just over a year and a half

CeraPhi, as my PhD is part-funded by them”.

after gaining her Master of Engineering in Automotive

Paige wishes to be part of the next generation of

Engineering and postgrad studies in artificial intelligence

geothermal experts, in her words, “saving the planet 1mw

and robotics.

at a time!”

Her current role with CeraPhi involves topside development as well as modelling and simulation for our R&D Department.

Announcing New Appointments

The whole CeraPhi team is with and beside you, Paige.

Welcoming New Members to the Team

CeraPhi Energy is growing. We have been lucky to appoint

The whole team welcomes Michelle and Barry and we all

two wonderful new additions to the team: Michelle

look forward to their contributions over the coming months

Nicholls has joined as a project coordinator and Barry Read

and years.

has joined as Geology and Proposals Lead.

Michelle joins us from a varied career, most recently in marine engineering. Barry was a Mudlogger and Seismic Engineer for 10 years around the world following his BSc in Geology at Aberystwyth.

Both are avid learners; Michelle is currently studying for a BA in Business Management and Barry has recently completed studies in Renewable Energy and Climate change. We know their combined knowledge and experience will be invaluable to CeraPhi’s growth.

13

Past Events Geothermal Rising Conference 1-4th October, Reno, Nevada

Conventional Geothermal Developments Need a Specialized Legal Framework?”.

CeraPhi Energy was excited to attend the Geothermal Rising Conference in Reno, Nevada at the beginning of October.

The GRC is the geothermal industry’s flagship annual conference, reflecting the global nature of the geothermal industry and bringing together people in industry, academia,

CeraPhi Energy proudly exhibited alongside companies such as Weatherford, ParkerWellbore, GeoLogica, LGAN Earth, and the Geothermal Energy Advancement Association. This gave the team the opportunity to discuss all things geothermal with valued colleagues and collaborators from around the world and we look forward to future opportunities for more.

government, and the general public. The show was a sell-out and the busiest GRC yet, with over 1600 delegates from around the globe attending the 4-day show.

The event provided an invaluable platform for our team to engage with a diverse audience of peers within the geothermal industry. Our exhibition stand allowed us to showcase the innovative CeraPhiWellTM technological proposal, which gained the attention of industry professionals and experts.

CeraPhi Energy contributed to the conference’s discussions through engaging panel debates and presentations. Karl Farrow took to the stage with a compelling presentation titled “Turning Liabilities into Assets,” offering unique insights into the transformative potential of our initiatives.

Higinia Torregrosa, representing our Houston office, played a pivotal role in the panel discussion titled “Do Non-

Upcoming Events Geothermal Transition Summit Europe 14-15th November, Berlin, Germany Scale European geothermal operations by collaborating with the oil and gas industry to enhance commercial viability, and position geothermal energy as a core provider of green heat. https://offsnet.com/gts-eu

14

Geothermal Technology Forum Harnessing Geothermal Energy for a Sustainable Future 29th November, Munich, Germany Our CEO Karl Farrow will be speaking at the Geothermal Technology Forum at Le Meridian Munich.

This event hosted by Weatherford offers the chance to learn about proven technologies in the geothermal space, maximizing return on investments and how to support an efficient, carbonneutral future. https://events.weatherford.com/geothermal/home

COP28 30 November - 12 December, Dubai, UAE COP28 is the 28th United Nations Climate Change conference, held from November 30 until December 12, 2023, at the Expo City, Dubai. It is an opportunity for world leaders, policymakers and energy industry professionals to take stock of global progress on the Paris Agreement.

Karl Farrow will be attending, hoping to join debates on decarbonisation and further raise the profile of Geothermal Energy. https://www.cop28.com/en/

Geotherm Germany 29 February - 1 March, Offenburg, Germany GeoTHERM is Europe’s largest geothermal trade fair and focuses on current developments in the industry, creating a platform dedicated exclusively to the topic of geothermal energy. The event welcomes around 4,900 visitors from 40 nations. The event is now in its seventeenth year. https://www.geotherm-offenburg.de/en Futurebuild 2024 5-7th March, London, UK Following a truly successful attendance at Futurebuild 2022, CeraPhi Energy are delighted to announce they will be exhibiting there again in March 2024.

Futurebuild is an annual trade event where like-minded organisations come together to build a better future for the environment. CeraPhi’s attendance at the 2023 event provided the opportunity to share inspiring conversations and innovative solutions, driving sustainable construction in the effort to reach net zero. https://www.futurebuild.co.uk/

15

Our Progress to date

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GLYNN ROY FALCO 08.09.1961 - 20.10.2023

It is with a heavy heart that we have to announce we have sadly lost one of our team.

Glen Falco supported CeraPhi Energy since the journey began. He was one of our original shareholders and came on board as a valued member of our team to take up the role of HSEQ manager. Glen brought with him decades of experience in managing situations and procedures safely and he steered us through the vast amounts of paperwork to get us approved to ISO 9001/14001/45001 and to ensure we maintained these standards. He was one of the most vigilant HSEQ managers I’ve ever worked with. However he did this in a way that got everyone on board, he didn’t shout or moan, he encouraged and helped and used his calm approach to steer people into doing the right things.

Glen believed with all of his heart in the CeraPhi mission and I am so pleased he managed to get to site to see all of our hard work come to fruition at the proof of concept demo project in Yorkshire. It was soon after this visit when he took ill and began the battle to fight off the cancer that had returned, which was sadly one fight too much for him.

Glen was very much a family man and he leaves behind his beloved partner, Ness his daughter Leah and his parents Ernie and Rose. Glen had a personality, warmth and gentleness that touched everyone he met. He was a true Gentle Man. To lose him so suddenly after this last illness was a shock for all of us, but especially his family to whom our hearts go out to unconditionally. He will be missed more than I can say, he will stay in our hearts and will always be part of the team.

Bless you Glen. (written by Gary Williams) Donations, if desired, can be given to Cancer Research UK via falcs.muchloved.com

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Global Energy Developer Delivering Integrated Geothermal Energy Solutions

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