Ceraphi EnerGeo Newsletter 13

Karl Farrow

– CEO CeraPhi® Energy

CeraPhi Energy begins 2024 optimistically. Countries and companies are increasingly prioritising renewable energy sources meaning that geothermal development has great potential for increased investment. As Governments and private investors recognise the potential for exploration of new geothermal opportunities, this investment will help us to drive innovation in geothermal technology, leading to more efficient and cost-effective energy solutions.

Advancements in technology will play a significant role in shaping the future of geothermal energy in the next 12 months. Innovations in enhanced geothermal systems (EGS), and Advanced Closed Loops solutions will become more commercial, making geothermal energy more competitive with other renewable energy sources.

Furthermore, the next 12 months are likely to see expansion of geothermal energy capacity in various regions around the world where Geothermal has not normally be associated, with countries such as Iceland, the United States, and Indonesia, will likely increase their geothermal development efforts to meet their energy needs and climate targets. Additionally, emerging markets in Africa, Latin America, and Asia are exploring geothermal resources as a reliable and sustainable energy option for their growing populations.

CEO Message CeraPhi® Energy begins 2024 optimistically.

Governments are expected to introduce policies and supportive measures to promote the growth of the geothermal industry. Incentives such as feed-in tariffs, tax credits, and renewable energy targets will encourage geothermal power into the energy mix. Collaboration between public and private stakeholders will be crucial in overcoming regulatory barriers and fostering a conducive environment for geothermal development.

Overall, the outlook for geothermal energy in the next 12 months is truly positive. As the world transitions towards a low-carbon future, geothermal energy must play a vital role in providing clean, reliable, and affordable electricity to meet the growing global energy demand. The geothermal industry is wellpositioned to thrive, and CeraPhi Energy is happy to be playing our part in the global energy transition.

Company Update

Third Energy Acquisition

CeraPhi Energy are delighted to announce their acquisition of Third Energy Onshore Ltd, a former shale gas development company. CeraPhi plan to repurpose Third Energy’s 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 8 well sites consisting of 12 former gas wells in a suspended state, nearly 40km of subterranean pipelines, and over 20km of buried fibre-optic communication lines.

CeraPhi completed a commercial demonstration of its CeraPhiWell™ system earlier in the summer using the Third Energy KMA site, showcasing the potential for scaling and commercialisation of heat networks using boreholes down to a depth of 2km. By repurposing end-of-life and non-producing oil and gas wells, in addition to drilling new wells, the CeraPhi solution provides 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 scale geothermal energy - an endless resource not subject to price fluctuation - enabling a move away from our dependency on fossil fuels”.

“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:

“Third Energy have been pursuing a transition strategy for several years now with geothermal energy at its centre. In CeraPhi Energy we’ve found a capable and accomplished partner, as proven by the successful geothermal demonstrator project at our KMA site last 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.”

Global Update News from USA

by Higinia Torregrosa

Feasibility Studies

In recent months, CeraPhi has successfully completed feasibility studies in collaboration with the Boston Green Ribbon Commission (GRC). These studies were undertaken for prominent institutions in Boston, including the Museum of Fine Arts (MFA).

The purpose of the studies was to assess the viability of implementing Advanced Geothermal Systems to reduce carbon emissions in the existing heating infrastructure of public buildings, which currently rely on natural gas.

Following these, we’ve received a surge in inquiries from other public buildings in Boston expressing interest in conducting similar studies. Notably, the Massachusetts Department of Public Utilities has recently enacted robust regulations, representing significant progress for geothermal networks utilizing ground source heat pumps. Two key aspects of these regulations include the requirement for networked geothermal pilot programs in each gas utility service area and a discouragement of new investments in gas infrastructure. These regulatory initiatives signal the state’s preparedness to embrace more geothermal projects in the future.

At CeraPhi Energy, we advocate for a broader consideration of both deep geothermal and shallow geothermal projects. This approach aligns with the evolving landscape and demonstrates our commitment to advancing sustainable and efficient energy solutions.

Awards

CeraPhi Energy has been recognised as a Top Innovator in the Geothermal Space by Darcy Partners, a leading technology scouting and innovation advisory firm dedicated to the energy industry. Darcy Partners comprises a community of over 100 energy companies. The award underscores Darcy’s commitment to elevating the visibility of key innovators on the international stage throughout 2023.

The announcement of this recognition is scheduled to take place at the New Energies virtual event on March 12th and includes three key themes: Nuclear Energy, Geothermal Energy, and Modified Combustion.

CeraPhi is genuinely honoured to receive this award and extends its gratitude to Darcy Partners for contributing to increased traction in the broader industry. This acknowledgment reaffirms our commitment to pushing the boundaries of innovation in the geothermal sector.

Projects Update

NZTC Magnus Report Results

Magnus Offshore Platform Study - the results are in

CeraPhi Energy recently completed an extensive study in collaboration with EnQuest and Petrofac and commissioned by The Net Zero Technology Centre (NZTC), evaluating the potential for repurposing 25 wells on the Magnus offshore platform for geothermal energy production.

NZTC commissioned the study to assess the potential of the Magnus offshore platform for converting heat energy from repurposed wells using the novel CeraPhiWell™ technology and the produced water stream into clean electrical power using Organic Rankine Cycle (ORC) generators. The study looked at generating electricity in two phases: from produced water while the platform is still extracting hydrocarbons, and post-decommissioning of the platform operations.

We’re happy to report that the results are in, and it’s concluded that the platform has the potential to generate up to 4.5MW of electricity. The study further demonstrates the potential for repurposing the many other platforms in the UK Continual Shelf for generating carbon-free electricity.

In conjunction with Net Zero Technology Centre, Petrofac and EnQuest, Geothermal Development Company, CeraPhi Energy are pleased to now share our long-awaited report, which you can read [here] for a more detailed breakdown of findings.

NZTC close out of demonstrator

CeraPhi’s KM8 demonstrator project, commissioned by Net Zero Technology Centre (NZTC), launched in September and has been a huge success.

The main objective of the demonstrator project is to prove the repurposing of an oil and gas well with a closed-loop geothermal system for heat production. The KM8 site has welcomed 100s of visitors, comprising MPs, local authorities, governing bodies, landowners, and senior industry personnel. Visitors have been able to see the entire set up including our Thermal Response unit, where they are able to feel radiators and see a functioning heat pump. Their response and feedback have been overwhelmingly positive. Now we set our sights on delivering the final report, with the first draft due to NZTC on 1st March.

We are currently in the process of having our findings validated by Geothermal Engineering Ltd., and Brunel University. Once our analysis of results has been validated, the report will be written up and can finally be released into the public domain.

Investor Spotlight

CeraPhi Energy, and Climate Change Ventures (CCV), the integrated financial services and green project development specialists, have joined forces to bring CeraPhi’s technologies to market across multiple sites, accelerating their shared ambition to help countries reach net-zero targets.

Karl Farrow, CEO of CeraPhi and Horacio Carvalho, CEO of CCV have agreed to combine forces to exploit their organisations’ shared knowledge and experience in bringing terrestrial, thermally derived green energy to the marketplace, with CCV facilitating significant investment in CeraPhi’ s portfolio of projects.

CeraPhi has pioneered the use of advanced “closed loop” geothermal technologies, which can be optimised to reuse redundant oil and gas wells in a cost-effective, highly efficient way. With a portfolio of acquisitions, they are now set to exploit a series of opportunities, promising shortened development time frames, and much needed, 24/7 supplies of heat and energy at attractive costs. CCV uses a green bond mechanism to bring project finance, enabling CeraPhi to realise their vision to exploit “the heat beneath our feet”.

Karl Farrow said, “CeraPhi has developed a portfolio of projects around the reusing of end-of-life oil and gas wells over the last 12 months, whilst working with CCV to develop a viable financial model to accelerate our project development. Working together will increase the availability of funding through the facility set up by CCV allowing us to deliver multiple commercial-scale geothermal energy projects.

As a mission-driven business, important initiatives like this are needed to shift the trajectory in carbon reduction, helping us to achieve Net Zero targets”.

Horacio Carvalho commented, “We’ve been observing the innovative approach to green heat and power production adopted by CeraPhi for some time now, and there is real potential for their work to reduce greenhouse gases, making our planet a safer place to be. We’re proud to work alongside them, funding our shared ambition to bring to market systems capable of solving the climate crisis. Exciting times lie ahead.

Awards

CeraPhi Energy was proud to be recognised by its peers at an awards ceremony hosted by the East of England Energy Group in December 2023.

Shortlisted for the ‘One to Watch’ category, The EEEGR Awards dinner is an end of year celebration of East of England businesses. Generate sponsored the ‘One to Watch’ category for which CeraPhi was shortlisted, an award commending start-ups or small businesses with great potential.

Karl Farrow, CEO said, “It’s great for the team to be recognised with another award as we end this successful year on a high. We’re preparing to announce several large energy contract awards in early 2024 so we’re really putting our geothermal technology on the map as an East of England commercial export”.

CeraPhi Energy based in Great Yarmouth, and founded in 2020, have had a brilliant year. The small team have hit some major milestones, their most significant being the successful completion of their commercial demonstrator on a well site in Yorkshire. This demonstration project proves the CeraPhi technology in repurposing end of life oil and gas wells.

The team won ‘Most Innovative Idea Award’ at the Small Business Awards hosted by the FSB (Federation of Small Businesses) in London, they were shortlisted at the Spectator Awards for ‘Economic Innovator of the Year’ and the EDP (Eastern Daily Press) ‘Environmental and Sustainability Award’. They were also recognised at a formal ceremony for achieving Silver Status as part of the Armed Forces Covenant Employer Recognition Scheme.

Past Events

APPG (All Party Parliamentary Group) Meeting on deep geothermal

23rd January, House of Commons, London

CeraPhi were invited to join the APPG on Deep Geothermal. The group has been established to bring together parliamentarians to share information and ideas, and to work collaboratively with stakeholders to develop a new British growth industry that is key to energy security and net zero, with the long-term goal of deep geothermal to become a mainstream renewable energy source in the UK.

EEEGR Annual Westminster Reception

24rd January, House of Commons, London

At this special reception, guests heard from MPs representing the East of England as well as several leading energy developers.

It was an inspiring event, and the team would particularly like to thank the support of Peter Aldous, MP for Waveney. In his welcoming statement, he recognised the huge role the East of England’s energy sector plays in the UK’s energy mix. It was particularly pleasing for the attending team to hear Peter talk at length about the work we are doing in the sector. He celebrated the fact that the East of England has a world leading geothermal company, making great strides towards the decarbonisation of buildings.

Agritech – We’ve got the Power – Balancing the on-farm energy equation

24rd January, Online Event

Ilse Bermudez presented on behalf of CeraPhi Energy at this online event. Ilse discussed the benefits of geothermal in agriculture, and the need for cheaper, more sustainable power – from powering vehicles to animal husbandry such as automated milkers, to providing heat and light in protected growing environments.

The team were proud to represent the East of England and to help put geothermal energy at the forefront of policymakers’ minds.

3Ci North East and Yorkshire Regional Investment Forum

31st January, Leeds, UK

Organised by Cities Commission for Climate Investment

We joined 3Ci at their 4th Regional Net Zero Investor Forum. Heard local experiences of Net Zero financing, understood each region’s strategic approach to climate investment and discussed the pipeline of net zero projects in the area.

Net Zero Innovations Unveiled in Norfolk’s Agri-food Industry.

21st Febuary, John Innes, Norwich

CeraPhi’s Karl Farrow presented to the audience at this dynamic event focused on innovation and collaborative working. CeraPhi exhibited and engaged with over 100 delegates looking to revolutionise the agri-food industry.

Next Steps for net zero and sustainability in the NHS

21st Febuary, Online Event

Russell Hoare, CeraPhi’s Financial Director took part in this event which discussed how geothermal energy can fit into the renewable energy mix for the NHS.

Geotherm Germany

29 February - 1 March, Offenburg, Germany

Karl Farrow attended Europe’s largest Geothermal trade fair, focusing on current developments in the industry. The event created a platform dedicated exclusively to geothermal energy. Over 4900 visitors attended from over 40 nations.

https://www.geotherm-offenburg.de/en

Upcoming Events

Futurebuild 2024

5-7th March, London, UK

Following a truly successful attendance at Futurebuild 2023, 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.

The whole team at CeraPhi Energy is already looking forward to another great event next year.

https://www.futurebuild.co.uk/

UEA Engineering - Company Engagement

6th March, Norwich UK

CeraPhi Energy have been selected to meet with UEA Engineering students for speed interviews and network with academics, researchers, and technicians.

OEUK Share Fair

20th March, P&J Live, Aberdeen

Organised with the support of the North Sea Transition Authority (NSTA), Share Fair focuses on delivering value to participants whether buyer or supplier. It encourages early engagement on ways to work collaboratively across the offshore energy spectrum including oil and gas, offshore wind, carbon capture and storage. Supply chain companies and technology innovators attending Share Fair gain access to market intelligence on forthcoming activity plus opportunities to meet key decision-makers at the event’s popular one-to-one meetings.

https://oeuk.org.uk/event/share-fair/

EEEGR SNS Conference

22-23 May, Royal Norfolk Showground, Norwich

The biggest and most important energy event in the East of England, each year SNS brings together over a thousand delegates from across the industry, alongside a diverse range of exhibitors and speakers to celebrate the extraordinary capability of the East of England’s supply chain.

The event is always highly anticipated in the industry calendar and this year will be no exception.

https://eeegr.com/sns2024-the-energy-ecosystem/

The Royal Norfolk Show

26-27 June, Royal Norfolk Showground, Norwich

The Royal Norfolk Show is the largest two-day agricultural show in the country with 700 trade stands. CeraPhi Energy hopes to exhibit in the Agri-tech Innovation Hub once more alongside some of the region’s most innovative farmers, producers, scientists and technologists..

https://www.royalnorfolkshow.co.uk/

Team News

Strategy Day- Team Building

As Ceraphi Energy head into 2024, the team are growing both in size and ambition. February felt like the right time to bring everyone together for a strategy day, to reflect on how far we’ve come and to refocus on where we aim to be.

Ceraphi’s vision was front and centre on the day, with CEO Karl Farrow instilling the team with his unwavering enthusiasm for our geothermal mission. Discussions centred on key areas of company growth, collaboratively outlining clear pathways to achieve our objectives.

A highlight for the team was the robust and promising outlook of CeraPhi’s project pipeline, encompassing both studies and projects. CeraPhi Energy is preparing to embark on a substantial power generation project and various major heat generation initiatives. These projects have the potential to revolutionise the global energy landscape, offering exciting times for Ceraphi Energy and the entire team.

team; 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 10 years around the world following his BSc in Geology at Aberystwyth.

Announcing New Appointments

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.

The whole team welcomes Michelle and Barry and we all look forward to their contributions over the coming months and years.

Jimmy Farrow

Amit Gupta

The CeraPhi Energy team welcome Jimmy Farrow as Operations Supervisor. Jimmy has 13 years’ experience in oil and gas, primarily focused on drilling. Starting at entry level, Jimmy worked internationally on jack-ups & semi-submersible assets, working his way up to crane operator & onto drilling deck supervisor. Jimmy is a big fan of football and loves DIY, fixing things, spending time with his wife and young son, going on family days out. CeraPhi feel lucky to have him – welcome, Jimmy!

Ex-Marine Electrical Engineer and individual stock market trader for over five years, is joining the CeraPhi Energy team as Economic Analyst.

Amit has a background in the marine industry and holds a master’s degree in finance and Investment from Loughborough University. He therefore combines technical expertise with financial acumen and the team are excited to see his skills in action. In his leisure time, Amit enjoys listening to music, watching movies, and socializing with friends. Welcome to CeraPhi Energy, Amit.

team; 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 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.

The whole team welcomes Michelle and Barry and we all look forward to their contributions over the coming months and years.

Business Assurance Team

CeraPhi are pleased to announce their newly recruited Business Assurance team. The team consists of Ralph Hardwick and Sharlene Powles, both of whom join Ceraphi from long, fascinating careers.

Sharlene was a nurse in the Royal Air Force and left in 2022 after serving 27 years. She has a wealth of experience managing multi-functional teams from diverse backgrounds in clinical settings, welfare, training and development - both military and NHS personnel. As a senior team leader Sharlene coordinated and planned strategic and tactical aeromedical evacuation flights, travelling worldwide from the UK, and based in high pressured and hostile locations in Iraq and Afghanistan.

Sharlene has also facilitated on courses delivering Leadership, Communication and Emotional Intelligence to NHS staff and engineering graduates.

She loves travelling, gardening, keeping herself and her two German Shepherds fit by undertaking long walks, cooking, DIY attempts (not always successful and still learning!).

Ralph is a qualified Marine Engineer, having sailed as an Engineer Officer in the Merchant Navy. Since leaving the sea, he gained over 35 years’ experience in the Offshore/Onshore Oil & Gas industry and the Offshore Wind Sector. Initially operating Coil tubing, Wireline, Helium Leak Detection and H2S protection equipment and latterly in a variety of management roles including Business Assurance, Project Services, Regulatory Affairs, Business Development and Health & Safety.

Ralph has extensive knowledge of Health & Safety compliance, major accident hazard management, incident investigation and ISO complaint Integrated management systems. For 7 years Ralph served as an Offshore Inspector in the Health and Safety Executive (HSE), managing the assessment of Offshore Safety Cases, the development of industry guidance and the training of UK, HSE Inspectors.

Ralph has 3 daughters and 7 Grandchildren and enjoys motorcycling, driving, photography, travel and playing guitar badly.

The whole Ceraphi Energy team welcome Ralph and Sharlene who are picking up from Glen Falco, our dearly departed colleague who originally set up the HSEQ department, which has since changed its name to ‘Business Assurance’.

Supervisory Board News

Horacio Carvalho

Joins as Director of the Supervisory Board

CeraPhi Energy are delighted to announce that CEO of CCV, Horacio Carvalho, is joining the team as Director.

Horacio joins CeraPhi with 50 years of experience in global energy and infrastructure financing. During his remarkable career to date, Horacio has raised more than US$15 billion in projects and concessions in the renewables sector.

Horacio is the Founder of Carbon Capital Markets which is responsible for having raised 3 carbon funds: Carbon Asset Fund (CAF), China Methane Recovery Fund, and REAF. Impressively, Horacio led the first large scale wind project in Brazil with certified emission reductions (CERs) as well as biomass, rice husks, landfill methane recovery all generating CERs.

CeraPhi Energy are so happy to welcome Horacio to our Board of Directors as we aim to become a world leader in geothermal energy provision.

Ceraphi Energy recently reached 9,000 followers on Linkedin.

The social media platform has proven useful for the team in staying abreast of the latest industry news and you will often find CeraPhi team members sharing their latest insights there. If you are on Linkedin, do give us a follow.