Building a Geothermal Energy business

….to what extent can a 'geothermal business' yield good economic returns? 0

Friday, July 9, 2021, Webinar, Online

On May 28th we held a successful Geothermal Energy Lunch’n Think Webinar; you can find the video of the event here:
https://www.findingpetroleum.com/event/Lunchn-Think-Webinar-Geothermal-Success/a662e.aspx

It some ways this was a ‘Geothermal 101’ that triggered a number of questions mainly along the lines of:

“Interesting technology, we can see the cross-over from the petroleum industry and there is clearly a strong business case when the temperatures are high (200deg C or so) yielding significant electricity to the market (if you can negotiate a good price!).

But at lower temperatures, surely there is an issue of high costs yielding low-ish revenues? Re-purposing good quality E&P wells may help with costs but aren’t the electricity volumes going to be low, and if the product is heat, is there a near-enough market?”

In other words, let’s hear more about the business case, the economics!

This Lunch’n Think Webinar on July 9th will be designed to answer these questions!

Agenda

13:00

David Bamford - Director - Finding Petroleum

Video of geothermal webinar Jul 2021



David Bamford is well known around the oil & gas industry both as an explorer and a geophysicist. He holds a Physics degree from the University of Bristol and a Ph.D in Geological Sciences from the University of Birmingham.

Since 2004, he has been a non-executive director at Tullow Oil plc, being recruited for this position especially for his exploration knowledge. He serves on the Nominations and Remuneration Committees, and was chairman of the latter, and Senior Independent Director, for 3 years prior to his retire from the board at the end of April 2014.

He was on the board of Premier Oil from May 2014 to May 2016.

He retired from BP plc in 2003, his last four positions being Chief Geophysicist (1990-1995), Business Unit Leader (General Manager) for first West Africa and then Norway (1995-1999), and finally Head of Exploration until 2003.

He has served on the boards of Paras Ltd, a small exploration and IS/IT consulting company in which he held 22% equity, until its sale to RPS Energy in 2008 and Welltec a/s, a Danish well engineering company, as the nominee of the private equity investor Riverside.

From 2012 to 201 he was on the board of ASX-quoted Australia Oriental Energy as a non-executive director.

He was a founder of Richmond Energy Partners, a small oil & gas research house, and several media companies that focus on the oil & gas sector, and has served as an advisor to Alliance Bernstein, Opus Executive, the Parkmead Group plc, and Kimmeridge Energy LLP. Since retiring from BP, he has undertaken asset and company valuation projects for investment banks, hedge funds and small oil companies.

Finding Petroleum
Finding Petroleum was established to help the oil and gas industry network, and stay up to date on the latest technological developments. It does this via hosting regular events and with an online social network of nearly 10,000 members.
13:05

John Leggate - Chairman - Gresham House Energy Storage Fund

Commercial challenges for Renewables, especially Geothermal


John has more than 25 years in the Energy space - from coal, oil and nuclear power plant construction, to oil and gas field projects operations.
For the last 10 years John has been an investment and strategic advisor in the Clean Tech/Renewable Energy sector and in the Digital Transformation sector.

Gresham House Energy Storage Fund
13:15

Zosimo "Zammy" F. Sarmiento - President & CEO - Sarmiento & Associates Inc.

General Exploration and Development Strategies in Greenfield Geothermal Areas

Talk Description.
The success rates in geothermal exploration have been a major issue that deterred many developers, investors, and funding institutions from financing greenfield geothermal areas. Geothermal development is inherently risky especially for any potential player who has very little or no experience in the industry. It takes 5-6 years before a power plant can be commissioned but it can be shortened with the right government policy and regulations, signed PPA, good and experienced personnel, and sufficient funds to bankroll the drilling campaign. A power plant can be built within two years after drilling the first exploratory wells, the period of which is dictated more by the manufacturing of the main turbine and plant construction. Today, wellhead units can even be brought online for 9-10 months, enough to supply electricity during the early stage of the exploration and delineation drilling program. As the highest risk is during the deep drilling exploration stage, thorough surface exploration studies need to be conducted to increase the chance of success.

In the past, the reservoir extent and structure were usually imaged by running a DC resistivity survey that can reliably capture geothermal anomalies within the 700-800 meters depth. Most of the top of the reservoirs are located at 1000-1500 meter intervals. Hence, ambiguities in the interpretation of the results often occur. These ambiguities, which could result in delineating 2 or more anomalies contribute to many failures in drilling. We use to drill 7-10 gradient holes in the past just to measure temperature gradients and locate the probable site of high temperatures in the geothermal play.

Today, the existing technology and the advanced interpretation of the data obtained from magnetotelluric (MT) and gravity surveys allow the imaging of the vertical and lateral extent of the reservoir from the surface down to the basement rock as desired or even beyond the magma chamber.

A general strategy that has been successfully adopted in many areas in Asia, New Zealand, Iceland, Central America, and East Africa will be discussed briefly, with concomitant techniques applied during the drilling and testing, to shed light that if done properly, the risks involved in geothermal development can be significantly reduced.


Zammy spent most of his 43-year career developing geothermal energy in the Philippines and abroad. He has been involved, either directly employed or engaged, as a Consultant in more than 2000 MW of geothermal energy installations in the Philippines, Indonesia, Kenya, El Salvador-Central America, Chile, Taiwan, and many others.

He is the President and CEO of FEDCO (Filtech Energy Drilling Corporation), and recently at Sarmiento + Associates Inc., both a local and international consultancy firm on geothermal energy. Zammy used to be the Chief Technical Officer from 2016 until February of 2019 of KS Orka Renewables Pte. Ltd, a Singapore-based company developing geothermal energy in Indonesia with a target installation of 270 MW in two concessions in Indonesia.

He served as a Consultant to Indonesia’s PERTAMINA under the World Bank and NZ Government Technical Cooperation Programme. Other geothermal companies in where he served as a Consultant include Marubeni for Rantau Dedap, Star Energy, and Power Tek Berhard of Malaysia in its attempted acquisition of Wayang Windu Geothermal Project. He is currently acting as Advisor to Emerging Power Inc., in its Montelago Geothermal Project in the Philippines. His early years were honed over 27 years at the government-owned and controlled PNOC-Energy Development Corporation where his last position was Senior Manager for Resource Management and Drilling Division before his early retirement in 2005.

Sarmiento & Associates Inc.
13:30

Karl Farrow - CEO - CeraPhi Energy Ltd

Scaling Geothermal for baseload Energy Impact

Talk Description.
The decarbonisation of heat is one of the biggest global challenges in the energy mix, what if deep geothermal or the use of thermal heat from deep under the ground could be used at a commercial scale to provide a global solution to electrification of heat?
30 Years in Energy sector starting life in Oil and Gas Exploration via a HND apprenticeship with a major US drilling rig manufacturer in the UK. During his 20’s he worked primarily within construction management within Europe and North Sea supervising EPC fabrication and Hook-up activities offshore. Founding Petrotec Group in 2000 in Spain, a bespoke project management interface and commissioning business with proprietary PMC software and operational offices in UK and across Europe and the Americas. Following acquisition 2008 Karl moved into a role as Director of International Commissioning Business for Wood, before moving to Mexico 2012 where he held roles as Operations Director for Petrofac and Regional Director IHI Corporation which is where Karl was first exposed to Geothermal Energy which has lead Karl on his journey to founding CeraPhi Energy a bespoke energy company with proprietary approach to developing affordable energy from Deep Geothermal.

CeraPhi Energy Ltd
13:45

Greg Coleman - - Future Energy Partners Ltd

Transition from Oil to Geothermal - with a focus on East Africa


Greg has over 40 years experience in the oil and gas industry including over 30 years experience with BP plc following which he served as CEO of a private equity backed company he co-founded called Canamens and subsequently as CEO of a listed company on the London Stock Exchange called Independent Resources plc subsequently refinanced and renamed now called Echo Energy plc.

At BP, Greg served as Business Leader for BP Norway, Head of Investor Relations and finally as group Vice President for Health, Safety, Security and Environment at global remit before retiring in 2006.

Future Energy Partners Ltd
Future Energy Partners (FEP) is a unique oil and gas advisory service which prides itself on technical excellence in selected fields and supplementing business management and leadership; in the face of uncertainty.

We offer truthful, professional opinion and advice; no playback of what you already know, and no spin.

FEP was founded by 4 senior industry practitioners who consider the challenges faced by today's oil and gas environment are going to require herculean acts of leadership and technical skill in a transforming, transitioning, industry, in order to maintain an energy supply that is sustainable and even recognisable compared to recent history.

Similarly nations developing an oil and gas industry face related challenges as they seek to maximise the benefits of this new wealth-creating opportunity - in a responsible manner.

Global reach

FEP actively participates in the facilitation and conduct of seminars and webinars worldwide, for example in conjunction with its associate partner Finding Petroleum.

Our presence reaches parts of the globe, such as: the UK, the USA, Sub-Saharan Africa, with partners wherever we work.
13:55 Q&A followed by Close no later than 14:15

Sponsors of this event

Geothermal Energy Advancement Association
The Geothermal Energy Advancement Association (GEAA) advocates increased investment in geothermal energy and increased awareness of this sustainable source for near zero-carbon power, heat, and hot water. The Association is a not-for-profit organisation offering leadership, dialogue, and information in the energy transition debate, supporting the role of geothermal in transitioning to a world that will use less petroleum specifically and fossil fuels in general.
GEAA officially took effect on April 14.

Registered Delegates

Hugh Ebbutt
Director
A T Kearney
United Kingdom
Hannah Graham
Social Media Director
Hellenic LLC
Germany
Rosina Maslin
Geoscientist
Other
United Kingdom
David Conroy
CTO
Aberdeen Drilling
United Kingdom
Vincent Fowler
HM Principal Inspector
HSE
Vidar Andresen
Director
Petrodataonline
United States
Gordon Stove
Co-Founder & Managing Director
Adrok
United Kingdom
Sarah Dominey
Lead Petrophysicist
Hurricane
United Kingdom
Carlo Buscaglia
Subsurface Team Lead
Petrofac
United Kingdom
Matthew Jacobs
Senior Geologist
Aeon Geoscience Systems
United Kingdom
Jim Hendry
Director / Consultant Geologist
Iapetus Geoscience Limited
Ireland
Alan Cohen
Director
PETROLERN LLC
United States
Chris de Goey
Director
Alcazar Energy Limited
United Kingdom
Feargal Murphy

IGS
United Kingdom
Frederic Yeterian
Director
Philax International (UK) Ltd
United Kingdom
Maria Mackey
Energy Sector
AWS
United Kingdom
Adrian Heafford
PM Seismic
IHS Markit
United Kingdom
Estefania Tudisca
Senior Geologist
Pluspetrol
Bill Ayres
DG
AYRES GROUP LIMITED
United Arab Emirates (UAE)
mohamed khiar
Geoscientist
IHSMARKIT
United Kingdom
Aruna Mannie
Mexico Exploration Manager
Premier Oil
United Kingdom
gaud Pouliquen
Busines Developement
Bell Geospace
United Kingdom
Martyn Millwood Hargrave
CEO
Ikon Science Ltd
United Kingdom
Nigel Quinton
Consultant
QX Energy Limited
United Kingdom
Andy Wood
Subsurface Manager
CeraPhi Energy Ltd
United Kingdom
ANDRES MESA

Independent consultant
United Kingdom
Chris Sladen
Founder
Reconnoitre Ltd
United Kingdom
Elisha Drumm

CGG
Abimbola Durogbitan
GM Geosciences
Independent Consultant/Nigerian Association of Petroleum Exolorationists UK/EUROPE COORDINATOR
United Kingdom
Charles Burrus
Head of M&A
Rice Acquisition Corp
United States
Clare Slightam
Managing Director
Chimaera Consultants
United Kingdom
Nick Johnson
Managing Director
JUC Ltd
United Kingdom
Kevin Dale
Specialist : Low Carbon Energy Market Development
Sasol Energy
United Kingdom
John Glass
MD
Cloverfield Consulting Ltd
United Kingdom
Heikki Jutila
Owner
Jutila LTD
United Kingdom
Maxim Kotenev

SEPI
Jess Kozman
Managing Director
CLTech Consulting
Australia
Jules van Limborgh
managing director
Kerogen
United Kingdom
Aaron Lockwood
Software Sales Manager - EAME
Shearwater Geoservices
United Kingdom
Raffaele Di Cuia
Technical Director
Delta Energy Limited Ltd
United Kingdom
James Rigg
Geoscientist
Kerogen Capital
United Kingdom
Hani Ibrahim
SME
SME
United States
Richard Pelling
Product Manager
Emerson
United Kingdom
Amanda Turner
Commercial Director
Lir Resources
United Kingdom
Matt Szwedzicki

Spark Exploration
Australia
Ellen Mitchell

ERC Evolution
Catriona Penman
Geologist (Software)
Lloyds Register
United Kingdom
William David Hartell
Managing Director
Stellae Energy Ltd.
United Kingdom
Glen Burridge
Executive Director
European Federation of Geologists
United Kingdom
Mark Jones
Global Sales Director - Oil and Gas
Logstor
United Kingdom
charles thomas
Director
Striped Horse
United Kingdom
dean maitland
director
EVS
United Kingdom
Mike Larsen
Director
Metastream Ltd
United Kingdom
Chris Einchcomb
Advisor
STRYDE Ltd
United Kingdom
Ian Peebles

Exprodat Consulting Ltd
United Kingdom
Fabio Brambilla
Sr. Geoscientist
MH
Italy
Russell Exley
Exploration Manager
Summit Exploration and Production
Kamlesh Parmar
Commercial Director
Frontier Geothermal Limited
United Kingdom
Marzena Olewczynska
Owner
MMO Consulting
Poland
Max Harper
Managing Director
syntillica
United Kingdom
Frank Jahn
Country Manager
Frontier Geothermal Ltd
Ethiopia
Andrew Shrager

Monitor Exploration Limited
United Kingdom
Phil Houston
Founder / CEO
TalEng
United Kingdom
Greg Coleman
CEO
Future Energy Partners
United Kingdom
Robin Sutherland
Consultant
Monitor Exploration Limited
South Africa
Les Anthony
CEO
Teyshas Energy, LLC
United States
Barbara Holzweber

Gaffney Cline & Associates
Gavin Elliot
Senior Geologist
New Age Ltd
United Kingdom
Romerico Gonzalez
Geoscience Advisor
Thermaprime Drilling Corporation
Philippines
Jeremy Berry
BD Director
GCA
United Kingdom
Helen Turnell
Principal Consultant
NR Global Consulting Ltd
United Kingdom
John Weston
Principal
Ulysses Petroleum Management
United Kingdom
Andrew Shrager

Geodynamics Worldwide
Italy
Antoine D'Amore
Manager
O&G
Russia
Alexandra Emuss

University of Glasgow
United Kingdom
Ross Smail
Head of Innovation
GETECH Group plc
United Kingdom
Alan Poole

OGA
United Kingdom
Neil Ritson
CEO
Vanguard Energy Ltd
United Kingdom
Geoff Marsden
Processing Geophysicist
GM Geophysical
United Kingdom
Maximilian Richards
energy transition consultant
OPC
United Kingdom
Daniel Roscoe-Hudson
Business Development Director
Verif-i
United Kingdom
Alice Butt
Geoscientist
Halliburton
United Kingdom
David Cox
Founder
Optykal
Canada
Kevin Sweetman
Managing Director
Verif-i
United Kingdom
Wally Jakubowicz
Managing Director
Hampton Data Services
United Kingdom
Stephen Birrell
Advisor
Ossian Energy Ltd
United Kingdom
Kate Baldwin
Head of ESG
Victoria Oil & Gas Plc
United Kingdom
Paul Bradley
Head of Operations
Health & Safety Executive
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John Dick
Director
OSSO Ltd
United Kingdom
Giles Watts
Consultant
Watts Geoscience Consulting
United Kingdom