Geothermal heat at Wijnen Square Crops. Pieter Wijnen

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1 Geothermal heat at Wijnen Square Crops Pieter Wijnen GEO-T Expo November 2013

2 Content Introduction WSC Introduction & context geothermal project Greenhouse vegetable production in NW-Europe Geothermal research Project outline Conclusions

3 Wijnen Square Crops Two productionlocations, 50ha Grubbenvorst 32 ha Egchel 18 ha Grading / packing facillity 300 employees (peak) 13 M kg pepper in 4 colours 20 M pcs. cucumbers Company film

4 Dutch greenhouse-horticulture Total area of greenhouses in NL: hectare hectare pottedplants and flowers hectare vegetables Production area is constant for over 20 years, however production increased over 50%

5 Why greenhouses? Outdoor climate conditions in NW-Europe are unsuitable for growing these products Southern parts of Europe get climate, and we can create it This gives us several advantages: High efficiency & High tech Labour Production Local for local, consumer settled in this region UK + DE + NL + BE 170 M consumers Closed enviroment enables us to: Good quality produce due to optimal climate conditions Use (recycled) rainwater for irrigation Biological crop protection Ensure food safety

6 Growing vegetables Requirement for plant growth Water Annual rainfall is sufficient for production Light Natural sunlight levels enables vegetable production for at least 10 mounths a year Heat Geothermal heat (NEW) CO2 Waste product from industries Photosynthesis Carbondioxide + water + light Glucose + Oxygen

7 Current heat production (1) Over the last 20 years, most companies invested in CHP: Combined Heat and Power production. 2013: 3000 mwe in horticultural production

8 Current heat production (2) Input Output 100% gas 43% electricity (95% sold to grid) Additional 50% heat (offers 95% of annual demand) 7% waste 93% efficiency Exhaust gasses are cleaned for CO 2 -fertilization Decentralized production & regional consumption Reducing transformer losses Reducing transport losses Overal: CHP is a very efficient way to fill in heat demands. As well CHP takes care of the unbalance in the grid, caused by: The way of life, higher percentage of solar and wind energy

9 Current energy developments Global developments during the past five years Electricity prices Coal prices Oil prices Gas prices CO2 prices Pollution Wind and solar energy Conclusion: Currently, a very efficient method of electricity- and heat production is financialy not profitable anymore Environmental unfriendly wins from efficiency

10 Geothermal research (1) Start 2007, everybody said it is impossible in this region! Perseverance doen t have to be a bad habit? 2008: Discussing plans and desk study Parties involved: TNO, Geologische Dienst Nordrhein Westfalen and VITO Result: VITO can offer the most knowledge regarding the target zone Diagnetic study of the kolenkalk-formation in /SCT/R/007 H. Ferket, B. Laenen en P. van Tongeren Prepared the Exploration license Californië 1 and Californië 2 Founded Californië Wijnen Geothermie BV (CWG) Joint venture with devoloper of greenhouse-concentration-area on a basis.

11 Geothermal research (2) 2009: 2D seismic campagne Californië 2009 Executed by DMT 0901 from Maasbree to Broekhuizenvorst (15 km) 0902 from Wachtendonck (Germany) to Horst-America (20 km) Drill trough the Tegelen fault Vito, KNMI, TNO en SodM 3 seismometers installed during drillin phase, connected with the KNMI system 2010: Well-design and modelleing wells with the faultzone /SCT/M10C3/HF/Modellering Venlo (VITO, Helga Ferket) Current activities Extended well test Exploitation license request

12 Finance Prognosis, final EUR 10 M for 1 st and 2 nd well

13 Insurance Subsidies: MEI, 40% maximum 1,5 M investment subsidy Insurance: Term/Sei, 85%, own risk is 15% minimum Drilling 1st well Production test <50% of the p90: stop >50% and <70%: hold over >70%, continue 7% premium Insurance term: 13 weeks Heat price if P90 - Internal price 4,- /GJ - others 6,- /GJ

14 Seismic campagne & plan (1)

15 Seismic campagne & plan (2) Planning: - 1 production well - 1 injection well - option for 3th well Planning 1 productieput, 1 injectieput en optie voor nog een Breukzone

16 Tegelen fault Drilling location Distance to the Fault 1 km - Production out of the fault - Injection in opposite direction

17 Well design

18 Drilling location

19 Projectmagement Operator Financial Drilling manager Senior drilling engineer Drilling Advisor Drilling Observer Geologists : Pieter Wijnen : Julian Santegoeds : Maarten Middelburg : Egbert Scholten : Piet Mol : Joop Link, Garry Schrage : Matsen Broothaers, Ben Laenen Indep. well examinator Drilling company Mining authority : Jan Willem Flamma : Daldrup & Sohne : Staatstoezicht op de Mijnen (SodM)

20 Siting

21 Drilling location

22 Drilling Rig

23 Drilling Rig

24 Productietes CAL-GT-01 Pump frequency (Hz) Flow (m 3 / hr) Drawdown (Bar) Temperature ( C) ,6 77, ,2 78, ,9 79, ,7 79, ,3 80, ,7 80,4

25 Heat exchangers

26 Filters

27 Heat exhangers

28 Greenhouse heating system

29 CO 2 footprint Reduction CO 2 per kg produce: From 1,8 to 0,2 kg CO 2 per kg produce. 90% reduction

30 Additional aspects Subsidy: Stimulering Duurzame Energie (SDE+) Operational subsidy, shorten payback time Possibilties tax regulations, EIA, MIA (with GLK), Vamil Participation wealty persons / parties Durable cultivation of GEO peppers Added value in het market? Financing currently very difficult, banking sector is very reserved Anybody interested to invest in subsequent projects?

31 Conclusions Long pre phase and high demanding during some particular phases High personal learning curve Succesful project regarding COP, flow and finance Stable in energy costs for the future High perspective with current developments energy-market Laws and regulations High regional perspective, even across the borders, BE and DE Geology in some parts of Germany and Belgium is similar to this project. Goal Dutch government: 20% renewable energy in 2020 Feasible, but better & other stimulation by government is required

32 Thanks for your attention Any questions?

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