GEOTHERMAL Renewable resource

Content 1. Geothermal Energy 2. Geothermal Energy utilization 3. Open projects 4. Work flow 5. Cooperation proposal

Geothermal energy is heat energy from core of the Earth Earth core estimated temperature is 5000 to 7000°C in the middle 1. Geothermal Energy

Geothermal energy heats meteoric water which is stored in underground reservoirs or comes out on the surface in form of heat water wells or geysirs

Average geothermal gradient is 25°C per km. In some areas the geothermal gradient has higher values ranging 50-60°C per km or more At this places the Earth crust is thinner and heat rises to larger extent Earth crust has 20-65km in depth (0.3-1 % of Earth radius) in continental areas Those places are suitable for building geothermal power plants which utilizes heat and changes it to electricity First geothermal power plant was built in 1904 in Lardello, Italy USA, Philippines, Mexico and Indonesia are main geothermal electrical power producers 1. Geothermal Energy

The electrical power produced by geothermal power plants in European Union is considered as renewable source of energy and electrical distribution companies are obliged to connect power plant to the electrical distribution network Geothermal power production is subsidized by European Union in form of favorable purchase price compared to non renewable electricity sources Purchase price varies country-by-country and it is on the level of Euro per 1 MWh Geothermal energy in reasonable quantities for Electricity production is available only in some of the areas in European Union 1. Geothermal Energy

To utilize geothermal energy a medium is necessary. The major split between geothermal systems is whether this medium is excavated from Earth in form of hot water/steam or injected from above the ground Traditional systems uses underground water/steam Historically, first usage of geothermal energy for Electrical energy production was in places where hot steam was available in temperatures ranging about 200°C and more Latter, systems with lower temperatures are used with temperatures about 120°C Today’s systems can work with temperatures ranging down to 95°C 2. Geothermal Energy utilization

Newest systems use Hot dry rock where a working fluid is injected into man made underground hole where hot are provides heat Working fluid is then used directly or indirectly to run the turbines and produce electricity After using heat from working fluid the working fluid is re-injected back to same place and heated again Theoretically, this form of Geothermal energy utilization can be used nearly anywhere at the World with wells deep enough to provide substantial heat Limiting factor with Hot dry rock is price of wells and geological underground formations 2. Geothermal Energy utilization

The geothermal power plant uses production well(s) to excavate steam and injection well(s) to return used water back to the ground

2. Geothermal Energy utilization In most cases straight use of underground steam is not feasible Usually, steam heats working fluid which has lower boiling point than water-organic fluid Working fluid circuits in closed circle through turbine which rotated the generator and produces electricity

Economically reasonable geothermal power plants starts with output power of cca. 4MW and higher ORC – Organic Ranking Cycle technology that uses working fluid can work from 95°C but reasonable temperatures starts at 120°C The output water has temperature of cca. 65°C and requires additional cooling before re-injection back to the ground For additional cooling the glass houses heating, spa’s or residential/industrial heating is used Geothermal power plant is stable resource of energy without variations in output power It can run remote without personnel on the site 2. Geothermal Energy utilization

Geothermal power plant runs at least 8000 hours per annum Maintenance interval estimation is 30 days per annum Geothermal power plant estimated lifetime is determined by size of underground reservoir and speed at which re-injected water influences it Lifetime of heat exchanger is determined by quality of excavated water/steam Geothermal power plant The Geysers worked with original turbine from 1960 until The power plant is still in operation. Estimated industry lifetime of geothermal power plant is 30 years

2. Geothermal Energy utilization Geothermal power plant operational costs includes cost for cooling, electricity costs for running technology on the site, costs for changing water quality, legal fees to the government etc. This costs are minimal compared to the revenue and usually they relate between 5-15% depending on technical factors like quality of the water High gross margin provides fast return of the investment and viable solutions for financing via externals sources – banks

3. Open projects Location 1 Located in central Slovakia, 166km from Bratislava Favorable geological conditions proved by extensive geological research including drilling Expected water temperature min. 120°C at 2500 meters Maximum output power considered at location 20MW Organic Rankin Cycle proposed Option to heat whole valley (cca inhabitants) with waste heat after electricity production Option to heat industrial zone nearby Highway to Bratislava

3. Open projects Location 2 Located in central Slovakia, 183km from Bratislava Favorable geological conditions proved by extensive geological research Expected water temperature min. 120°C at 2200 meters Maximum output power considered at location 7MW Organic Rankin Cycle proposed Option to heat city after electricity production

3. Open projects Location 3 Located in central Slovakia, 191km from Bratislava Favorable geological conditions proved by extensive geological research Expected water temperature min. 120°C at 2000 meters Maximum output power considered at location 7MW Organic Rankin Cycle proposed Option to heat city after electricity production

3. Open projects Croatia Located in central Croatia, 45km from Zagreb Favorable geological conditions proved by extensive geological research and 2 wells – one 4.3km and second 3.5km that can be used for re-injection Proven water temperature min. 120°C at 1800 meters, maximum 137 at 2200 meters Maximum output power considered at location 21MW Organic Rankin Cycle proposed Option to heat city with electricity inhabitans Option for agricultural production Option to heat ponds

3. Financial facts Location 1 Minimum plant output power planned 4MW Investment size 26MEuro for 4MW Average annual revenue for 4MW is 4MW x 8000h/annum x 155Euro/MW = Euro Maximum plant output size 20MW Maximum investment size 115MEuro Average annual revenue for 20MW is 20MW x 8000h/annum x 155Euro/MW = Euro The Contract with mentioned favorable prices for 15 years of operation is signed with distribution company and it is distribution company obligation to purchase at this price

3. Financial facts Location 2 Minimum plant output power planned 4MW Investment size 25MEuro for 4MW Average annual revenue for 4MW is 4MW x 8000h/annum x 155Euro/MW = Euro Maximum plant output size 10MW Maximum investment size 52MEuro Average annual revenue for 10MW is 10MW x 8000h/annum x 155Euro/MW = Euro The Contract with mentioned favorable prices for 15 years of operation is signed with distribution company and it is distribution company obligation to purchase at this price

3. Financial facts Location 3 Minimum plant output power planned 4MW Investment size 28MEuro for 4MW Average annual revenue for 4MW is 4MW x 8000h/annum x 155Euro/MW = Euro Maximum plant output size 10MW Maximum investment size 52MEuro Average annual revenue for 10MW is 10MW x 8000h/annum x 155Euro/MW = Euro The Contract with mentioned favorable prices for 15 years of operation is signed with distribution company and it is distribution company obligation to purchase at this price

3. Financial facts Croatia Minimum plant output power planned 4MW Investment size 22MEuro for 4MW Average annual revenue for 4MW is 4MW x 8000h/annum x 170Euro/MW = Euro Maximum plant output size 10MW Maximum investment size 55MEuro Average annual revenue for 10MW is 10MW x 8000h/annum x 170Euro/MW = Euro The Contract with mentioned favorable prices for 12 years of operation is signed with distribution company and it is distribution company obligation to purchase at this price

3. Financial facts Croatia Croatian investment law strongly supports foreign investments Investments between 1 – 3 Million Euro company pay only 25% of income taxes within next 10 years with condition it employs minimum 10 persons Investment above 3 Million Euro company pays no income taxes within next 10 years with condition it employs minimum 15 persons In mentioned area one time state subsidy per each employee is 6000 Euro

4. Work flow Preparation of drilling Drilling Technology installation Grid&Connection Geothermal power plant installation consists of following steps:

4. Work flow Legal work - permits, licences Reservation of capacity in Electrical network Ground plot purchase Preparation of drilling - 6 months

4. Work flow Preparing of ground plot for drilling, foundation Drilling Internal and external supervision of drilling Measurements during drilling Measurements and quantification of drill Legal framework and approval for excavation (usage) of water Drilling&testing - 7 month depending on weather

4. Work flow Basement preparation Technology installation Testing of production Connection to grid Stability testing Technology installation - 12 months

4. Work flow Legal preparation Connection of transformers and other technology Network Monitoring connection and set-up Grid&Connection - 6 months

5. Cooperation proposal We offer comprehensive roll-out of renewable source of Energy with possibility to create turn-key project. We cover following activities: Legal work Geological research and geological due diligence Purchase of the ground Vendor evaluation and negotiation Substantial network of contacts within countries Assistance with governmental negotiations Total Project management Etc.