Cluff Geothermal
Geothermal Energy in the UK and overseas
Workshop on Geothermal Energy, Embassy of Iceland
17 November 2011
Presentation overview
 Introduction: Cluff Geothermal
 Our UK projects
 The policy background
 Geothermal Energy in Africa
 Our vision of geothermal energy in the UK
About Cluff Geothermal
 Company incorporated in March 2010, with the intention to explore for
geothermal potential in the UK and overseas
 Strong board of directors chaired by Algy Cluff, a very experienced
businessman a who has been active in natural resource businesses
since early stages of North Sea oil
 We work closely with Newcastle University, who have been in the
forefront of developing UK geothermal science
 Business model is to take forward small number of diverse geothermal
projects - several now in train in the UK and overseas.
Our UK projects
The site at Eastgate, Weardale
Geothermal energy in the NE
Several areas in the UK have attractive deep geothermal
Resources, including Cornwall, the Wessex basin - and the
North East, where the Weardale granite pluton provides a
large geothermal heat source.
The Weardale Granite cooled and solidified about 400
million years ago, and is a key geological feature of the
North Pennines. Not exposed above ground, its existence
was proven in 1961 by the deep borehole at Rookhope.
Two new boreholes have been drilled in the last two years
at Eastgate, to the south of Rookhope. These have found
exceptionally high permeability in the granite, making the
site of great interest for geothermal energy exploitation.
UK geothermal areas
Deep faults across the North East could distribute the heat produced by the
Weardale Granite, making geothermal energy viable across a wide area.
The Eastgate project
The site of a defunct Lafarge
cement factory, Eastgate has outline
planning for a ‘Renewable Energy
Village’ with geothermal energy as
the centerpiece.
Cluff has signed an exclusivity
agreement with Lafarge and will
develop the site’s geothermal
energy to fit with the emerging
surface project.
Power generation is one option at
Eastgate, or we could develop a
heat-only project to supply the
proposed health spa.
The Eastgate spa would be the first
true geothermal spring in the UK
since the Romans built Bath.
Eastgate offers us several development
options which - with existing, guaranteed
Government support for heat and power are commercially attractive.
The North Tyneside project
We are also working on a heat-only
geothermal project in North Tyneside.
This would supply low carbon heat to
a new-build housing project and also
to nearby commercial buildings via a
heat network.
In the longer term, we believe this model may be replicable across the NE region,
potentially providing inputs to a North Tyneside low carbon heat network.
The North Tyneside project represents a reprise of the Southampton
geothermal project of the 80s. The arrival of the RHI represents a step
change in the commercial viability of these projects.
UK Policy will support the
roll-out of geothermal heat
Discussion of energy policy in the UK often
focuses on electricity. But in fact it is heat
that dominates UK energy use, accounting
for 45% of total energy used:
• 2/3 of gas consumption is for heat
• more than 40% of UK’s CO2 emissions
arise from heat use
UK energy use by sector, 2009
Must focus on heat to hit our targets on
energy security and carbon emissions.
DECC estimate that percentage of UK heat
from renewable sources needs to increase
from around 1-2% now to 9% in 2020.
Source: ‘UK Energy Trends’, DECC, October 2011
Cluff expects the ‘Renewable Heat Incentive’ (RHI) to drive a
step change in the deployment of heat-only geothermal projects.
Our African Projects
Contact: George Delacherois Day - Africa Projects Manager
gdd@cluffgeothermal.com
An ideal market for
geothermal energy
East Africa is home to 270 million people
and is seeing rapid economic growth: an
average of 6 % per year over last 7 years.
Demand for power growing 3-5 % per year
faster than GDP - and only 15% of the
population so far connected to the grid.
Ten countries in the Rift Valley have good
geothermal resource, with steam
fumeroles at numerous sites.
Cluff Geothermal are well placed to take
forward geothermal projects in the region:
• huge experience of working in Africa
• strong ties with Ministries and utilities
East Africa wants geothermal energy - Cluff can deliver it
The Kenyan opportunity
The population of Kenya is 45 million - with
only 14 % with access to grid electricity.
High economic growth - 6% over last 5 years.
Captive power demand is 1400 MW, but only
1200 MW of installed power available including highly seasonal hydroelectric power.
Kenya has excellent geothermal resources,
with 200 MW already developed - ultimate
potential in the 1000’s of MWs.
The Kenyan Government is extremely keen to
develop the country’s geothermal energy
potential.
Kenya is ideally placed for geothermal energy development
Geothermal Energy
in Ethiopia
Ethiopia
• 80 million people
• 1400 MW of installed power
• Demand of 1600 MW
• 8% average GDP growth over recent
years
• Power consumption growth 13 % p.a.
• Economy being deregulated
A lava lake in Ethiopia
Ethiopia currently gets almost all its electricity from hydroelectric dams. This
provides relatively cheap power, though this is highly subject to seasonality.
The Ethiopian Government is keen to develop the country’s attractive geothermal
resources to provide baseload power
Ethiopia’s location could also allow it to become an exporter of power to the region.
Our vision for 2020
We expect to see:
• Significant deployment of deep geothermal energy in the
period up to 2020, with even brighter prospects later as
costs continue to fall.
• In the UK, geothermal heat only schemes rising in number,
in parallel with the increased deployment of heat networks.
• Reducing, but still attractive, levels of financial support.
• Internationally, geothermal energy gaining an even higher
profile, and attracting investment, both in areas with near
surface resource and where deeper drilling is required.
• The geothermal energy sector moving into the mainstream
as a sustainable, low carbon UK renewable technology.
Thanks for listening.
Contact: Dr. Michael Feliks, UK Projects Director mf@cluffgeothermal.com