1. Michael Feliks UK Operations Manager Cluff Geothermal

2. The Hill of Banchory Geothermal Energy Project: Feasibility Study Supported by the Geothermal Energy Challenge Fund, part of the Low Carbon Infrastructure Transition Programme (LCITP) Presentation 23 February 2016 - Michael Feliks – Cluff Geothermal Work done by the Hill of Banchory Geothermal Energy Consortium

3. The Hill of Banchory Geothermal Energy Consortium The consortium came together in March 2015, and submitted our final report in mid February 2016. The membership is as follows: HOBESCO/Jigsaw Energy, the owners and operators of the Hill of Banchory heat network Academic experts in the fields of geology and deep geothermal energy from the University of Glasgow and the University of Aberdeen British Geological Survey (Scotland) Cluff Geothermal, a London-based deep geothermal company Ramboll Energy, a global Energy Consultancy Town Rock Energy, a Scottish deep geothermal consultancy Aberdeenshire Council

4. Project location The Hill of Fare ‘Pluton’ is a huge mass of granite 5km north of Banchory

5. An existing heat customer… Banchory already has an existing heat network, at Hill of Banchory. This uses local biomass fuels. It also has heat stores, and back up gas boilers, in place. The network has considerable scope to expand into other areas of Banchory. 5km to Hill of Fare

6. Heat transfer pipeline Geothermal heat for Banchory Hill of Banchory Heat Network Energy Centre UK Ordnance Survey

7. What did we do? Explored the geothermal potential at Hill of Fare: measured heat production, thermal conductivity, and carried out a ‘gravimetric’ survey Used these new data to conduct analysis estimating the heat flow at Hill of Fare Investigated how the existing and future heat network at Hill of Banchory could utilise the output from a geothermal well Integrated the study’s geological and financial outputs to explore whether the overall system would be commercially viable Estimated potential carbon emission savings at Banchory, and from a wider roll out of ‘radiothermal’ geothermal heat Collecting samples high on the Hill of Fare for thermal conductivity analysis photo: David Townsend

8. Report findings We believe the Hill of Fare has good geothermal potential The heat production rate in the Hill of Fare granite is 4.04 μW/m 3. This is among the highest for any Scottish granite, and makes the Hill of Fare intrusion a ‘high heat production’ granite Using our measurements for thermal conductivity and heat flow (adjusted for paleoclimate) we estimated the thermal gradient at Hill of Fare - next slide We also made estimates for permeability, allowing us to predict the heat capacity of the well and work up a financial model for heat sales The geothermal well would be able to compete with natural gas heating but not with the low biomass heat costs of the current Hill of Banchory (HoB) heat network The future expansion of the HoB network offers realistic opportunities to accept heat from a geothermal well. One important issue will be input temperatures The local community in Banchory are enthusiastic about geothermal heating The carbon intensity of geothermal heat was estimated to be 4.7 KgCO 2 /MWh th – exceptionally low

9. The Thermal Gradient at Hill of Fare Geothermal Gradient Prediction Scenarios for Hill of Fare Granite

10. Recommendations/Next Steps Drill at least one, and ideally three, pilot boreholes to 600-1,000 m depth at Hill of Fare. This will greatly increase our understanding of the geothermal potential of the Hill of Fare pluton. (Prior to this the necessary permitting would be obtained.) Complete further geophysical surveys (gravity, passive seismic) and LIDAR fracture surveys to further constrain geological properties of the Work up a detailed plan and schedule for development of the two boreholes, from drilling to commissioning Explore with local landowners possible sites for the boreholes and pipelines Run further public engagement events locally and nationally to increase awareness of the project and Scotland’s deep geothermal potential Initiate a search for funding to allow the project to proceed

11. Postscript: Potential Carbon Savings A lifecycle analysis of the carbon intensity of deep geothermal heat was carried out, based on the ‘central case’ assumptions on the characteristics of the geothermal well We assumed a 2.5 MW well with a thirty year lifetime, operating at 60% load The calculations included the carbon emissions arising from drilling the borehole, operating the pump, and also the ‘embedded’ carbon. The carbon intensity of the geothermal heat was estimated to be in the range 3.7 – 5.7 KgCO 2 /MWh th. This is very low (c.f. natural gas heat is 184.5 KgCO 2 / MWh th ). Over 30 years a geothermal well at Banchory could save around 71,000 tonnes of CO 2 if it was replacing natural gas heating