The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020) The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020)

GEO-ENERGY EUROPE Webinar #2July 9, 2019

The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020)

The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020) The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020)

Webinar agenda & objectives

• Agenda:1. Introduction to GEO-ENERGY EUROPE (GEE)

project & website - Emmanuelle Piron, POLE

AVENIA (20’)

2. The European geothermal sector - Thomas

Garabetian, EGEC (20’)

3. Focus on the Turkish market – Ural Halaçoğlu

Zorlu Energy Group & JESDER (20’)

4. Questions and Discussions – all (40 min)

• Objectives:

− Reach out to YOU (GEE cluster partners’

members)

− Get you familiar with GEO-ENERGY

EUROPE project & activities

− Get you involved through input to

website, strategic planning &

international missions

The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020) The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020) The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020)

Part 1 - Introduction to GEO-ENERGY EUROPE

project & website - Emmanuelle Piron, POLE AVENIA

The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020) The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020)

GEO-ENERGY EUROPE in short

• European project submitted under « CLUSTERS GO INTERNATIONAL » call, funded by

EASME (Executive Agency for SMEs) / DG Growth / EU Commission

• Started in January 2018, for a duration of 2 years

• Budget 267 k€, 200 k€ EU grant (75% financing rate)

• Initiated & coordinated by POLE AVENIA, based in Pau, N. Aquitaine, SW France

• 8 partners from France, Belgium, Spain, Ireland, Hungary, Germany & Turkey

• Project objectives / EU expectations:

1. To create a European Strategic Cluster Partnership or « metacluster » on geo-energy,

promote experience & good practices sharing, technology & know-how transfers & give

geo-energy sectors & geothermal energy more visibility in Europe and worldwide

2. To develop a joint internationalization strategy & roadmap to help our member SMEs access,

or increase their business on, the world deep geothermal markets

The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020) The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020)

GEO-ENERGY EUROPE’s vision

To develop a stronger and more integrated European sustainable geo-energy sector, (especially SMEs) with an initial focus on geothermal energy

➢ Export the European know-how and experience by helping the EU geo-energy SMEs increase their business and outside Europe

➢ Contribute to industrial deployment and market uptake of deep geothermal in Europe and across the world

The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020) The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020)

GEE partners & work program

8 partners from France, Belgium, Spain, Ireland, Hungary, Germany & Turkey, with a mix of cross-

sectorial applied geoscience clusters and geothermal organizations, representing 23 countriesWork Plan

The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020) The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020)

Project progress

• Achievements to date

1. Partnership agreement

2. Communication strategy

3. Market & opportunity report on targetedthird markets: Kenya, Indonesia, Mexico, Chile & Canada

4. Website release

We are here:

12

3

• Key upcoming deliverables

− Internationalisation strategy & road map

− International mission(s)

− Cooperation agreement(s) with thirdcountry organization(s)

+ Cross-sectorial cooperation agreement

4

The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020) The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020)

www.geoenergyeurope.com

The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020) The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020)

www.geoenergyeurope.com

Page Main functionality

Home & About General presentation of GEE project & metacluster

Members Listing, mapping & filtering of all 600+ members

Case studies Examples of skills, services and experience provided by

members through achieved or ongoing concrete

projects (industrial or R&I)

Media & News News related to GEE metacluster &/or members

Events List of relevant events to the geo-energy/geothermal

sectors and GEE participation to these events

Contact Contact form

Your feedback needed!

Your INPUT wanted!

→Get to know each other with the Members and Case studies pages

→Display your case studies to make what you are proud of visible to the world

→We are here for you: help us make this website suitable to your needs!

The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020) The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020)

www.geoenergyeurope.com

Website key messages:

➢ We cover the entire value chain

➢ We are skilled and experienced

➢ We are stronger together

→ Get involved and use GEE website for international visibility (members)

→ Get on board! (other clusters)

The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020) The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020)

Webinar agenda & objectives

• Agenda:1. Introduction to GEO-ENERGY EUROPE (GEE)

project & website - Emmanuelle Piron, POLE

AVENIA (20’)

2. The European geothermal sector - Thomas

Garabetian, EGEC (20’)

3. Focus on the Turkish market – Ural Halaçoğlu

Zorlu Energy Group & JESDER (20’)

4. Questions and Discussions – all (40 min)

• Objectives:

− Reach out to YOU (GEE cluster partners’

members)

− Get you familiar with GEO-ENERGY

EUROPE project & activities

− Get you involved through input to

website, strategic planning &

international missions

• Webinar #1 on market & opportunity analysis in Kenya, Mexico, Indonesia, Chile & Canada +

internationalization strategy last May 21 (Market & opportunity report available to GEE members)

→ Presentation material available on GEE website Media & Publication’s page

→ Market report can be accessed by members, on demand (contact us)

09/07/2019 Thomas Garabetian EGEC Policy Advisor

Deep geothermal in Europe: market overview

Installed capacity for geothermal electricity & district heating (2018, Mwe & MWth)

Two important milestones:1) More than 3 GWe installed2) More than 300 Geothermal DH in

operation

….and soon 2 millions geothermal HPs !

New installed capacity in 2018 by country

& Nb of new geothermal power plants

Geothermal electricity capacity in Europe

Average size of geothermal electricity turbines by types of plants

New plants for deep geothermal for heating and cooling in 2018 (capacity and number)

Average size of deep geothermal heating and cooling plant per country

Stock and sales geothermal heat pumps in 2018

EU geothermal industry competitiveness

Co-funded by the European Union's Horizon 2020 Research and Innovation Programme [GA. N. 773392]

Deep geothermal industry supply chain

Subsurface industry

• Exploration:

• Different solutions, different actors.

• Crucial for project success

• E.g. : 2/3D geological models, software,

exploration services

• Drilling: closely related to the O&G sector

• Large part of a project cost (up to

50%)

• New business models leading to

decrease in costs?

Surface industry

Legal and financial services

• Adequation of project with regulatory framework (environmental regulations…)

• Financing of the project: public support and business model.

Example: Corporate sourcing

• Corporate Power Purchasing Agreement:

with physical or virtual supply via a heat or

electricity network

• Public Private Partnership & Joint Ventures:

involvement of local authorities and/or private

consumers of the energy in the financing (e.g.

equity) of the project

• Project development with self consumption:

Some companies in Europe have decided to

develop their own geothermal project, and have

internalized the competences

Geothermal electricity: Europe in the world

The European

industry is meanwhile

a world leader on

deep and shallow

geothermal heating

and cooling

technologies.

Market dynamicsType of companies Number of

companies

Project developers 288

Utility & Project developers 63

Utility 63

Exploration/drilling 56

Research institute/Universities 28

Holding & corporations 26

Builders/engineering contractors 23

Engineering technical services 19

Geothermal energy systems 14

Industry associations 13

Investor 9

Technical consultancy 8

Land owner 7

Heat pumps 7

Engineering services & exploration/drilling 7

Other 435

• Fairly high level of competition in

geothermal

• Close links with the oil & gas industry:

many companies are major actors in

both sectors

• Innovation driven market

• Different type of actors (large

companies, SMEs) compete for the

same segments of the value chain

Geothermal industry and raw materials

Material Supply vulnerability status

Iron Non-critical

Carbon (coking coal) Check (63% import dependency)

Chromium Mixed status

Nickel Non-critical

Molybdenum Non-critical

Titanium Non-critical

Aluminium Non-critical

Epoxy/Plastics Non-critical

• Raw material vulnerability of geothermal is

limited when it comes to rare materials

• Steel and concrete may however be a

vulnerability if global prices increase

• Geothermal may also be a factor of raw

material independence, for instance with the

prospect of brine mining or by reducing

other needs (e.g. energy storage, grid

services…)

The European geothermal market: Operators/Developers

Major geothermal electricity projects operators Major geothermal electricity projects developers

The European geothermal market: Operators/Developers

• Important role of the public sector

• Smaller operators (SMEs…) able to compete on the European market

• Markets remain very national

• The right framework enables the emergence of new actors in a fairly policy driven market

Typologies of operators for deep geothermal

heating and cooling

The European geothermal market: Turbines

Manufacturer Country Number of projects

in Europe

Turboden Italy 7

Toshiba Japan 3

Siemens Germany 1

Rotoflow USA 1

Pratt and Whitney USA 1

Ormat Israël 29

Mitsubishi Japan 5

Kaishan China 1

Fuji Japan 4

Exergy Italy 12

Electra Therm USA 1

British Thompson Houston UK 1

Atlas Copco Sweden 3

Ansaldo Tosi Italy 18

Alstom/GE France/USA 9

• Competitive market

• Various technologies, but binary turbine

dominate the European market in recent

years

Example of the US Market

• High temperature market, largest geothermal electricity producer

• Robust industry, many links with the O&G industry

• Underexploited H&C potential• 100MW GeoDH

• 17 GWth geothermal heat pumps

Prospective markets: example of Islands

There are many underdeveloped areas in terms of geothermal potential. Islands are a particularly interesting prospect in many cases:

• High dependency on oil for electricity and heating & cooling needs

• Significant resource available in volcanic islands

• Potential for H&C cooling (GSHP, GeoDH)

• Geothermal flexible & dispatchable: bring services to small size energy systems

Example of the Pico Alto Plant in the Azores

The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020) The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020)

Webinar agenda & objectives

• Agenda:1. Introduction to GEO-ENERGY EUROPE (GEE)

project & website - Emmanuelle Piron, POLE

AVENIA (20’)

2. The European geothermal sector - Thomas

Garabetian, EGEC (20’)

3. Focus on the Turkish market – Ural Halaçoğlu

Zorlu Energy Group & JESDER (20’)

4. Questions and Discussions – all (40 min)

• Objectives:

− Reach out to YOU (GEE cluster partners’

members)

− Get you familiar with GEO-ENERGY

EUROPE project & activities

− Get you involved through input to

website, strategic planning &

international missions

GEOENERGY PROJECT WEBINAR

09.07.2019 / TURKEY

Ural HALAÇOĞLU, M. Sc.

JESDER

• JESDER was established in 2014 and started to work in 2015.

• The aim of JESDER is to provide cooperation between public andprivate sectors and to strengthen communication.

MEMBERS

GLOBAL GEOTHERMAL RESERVES

GEOTHERMAL SECTOR-WORLDWIDE

Source: TGE Research (2018), GEA (2016), IGA (2015), JESDER (2018)

TURKEY’S INSTALLED CAPACITY

15 15 23 23 3077 94 114

162

311405

624

775

1053

1347

1750

2000

-

500

1 000

1 500

2 000

2 500

1984 1985 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

The aim is to reach2000 MW installed

capacity in 2020455 MW

Preliminary License

1.568 MW Licensed Project

200 MW Underconst

ruction

TURKEY’S GEOTHERMAL MAP

GEOTHERMAL SECTOR-TURKEY

Source: TGE Research (2018), GEA (2016), IGA (2015), JESDER (2018)

• Increasing incentives for domestic productions

• YEKDEM(Renewable Energy Support Mechanism)

• Integrated and hybrid system usage incentives

• Long-term credit facilities

• Suppliers should make domestic products

• Geographical availability is high

• Demographic Factors

• Expanding population needs to increasing employment capacity

TURKEY’S GEOTHERMAL STATE

FOUR PILLARS ON TURKISH GEOTHERMAL DEVELOPMENT

Resource Data

Institutions

Supportive Policies

Access to Financing

RESOURCE DATA & EXPLORATION

Resource Data

Institutions

Supportive Policies

Access to Financing

TURKISH INSTITUTIONS

Resource Data

Institutions

Supportive Policies

Access to Financing

SUPPORTIVE POLICIES

Resource Data

Institutions

Supportive Policies

Access to Financing

Feed-in Tariff Prices in Turkey

Type of Energy Source

Price (USDcent/kWh)

Hydro 7.3

Wind Farm 7.3

Geothermal 10.5

Biomass 13.3

Solar 13.3

Local Manufacturing Incentives

Turbine 1.3

Generator/ Power Electronics

0.7

Steam Ejector/ Vacuum Pump

0.7

SUPPORTIVE POLICIES

Resource Data

Institutions

Supportive Policies

Access to Financing

ACCESS TO FINANCING

Resource Data

Institutions

Supportive Policies

Access to Financing

Financing

Project Structure

(risk)

FITSchedule/Profitability

THANKS FOR YOUR ATTENTION. . .

Ural Halaçoğlu, M. Sc.

Assistant Manager, Zorlu Energy Group,

Project & Business Development

ural.halacoglu@zorlu.com

The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020) The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020) The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020)

Questions & Discussion

The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020) The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020)

Webinar closing remarks

• Objectives (reminder):

− Reach out to you (cluster partners’ members) and get you familiar with GEO-ENERGY EUROPE project & activities

− Get you involved:

o In making your skills, services and experiences visible through profile & case studies on the website

o In co-developing internationalisation road map, helping us prioritize action items and anticipate Phase 2 of

GEE project to best suit your needs

o In preparing, and participating to, international events / missions under GEE banner

• Next steps:

− Market report available upon request to all GEE partners’ members

− Online survey to collect feedback and interest in providing case studies, participating to GEE strategic planning + telephone interviews over next 2-3 weeks

− Preparation of business mission + IGC Turkey in Nov 2019 and possible international mission to Kenya or Chile in Nov-Dec 2019

The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020) The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020) The GEO-ENERGY EUROPE project is funded by the European Union’s COSME Programme (2014-2020)

THANK YOU FOR YOUR ATTENTION!

Contact:• Emmanuelle Piron, POLE AVENIA: emmanuelle.piron@pole-avenia.com

• Thomas Garabetian, EGEC: t.garabetian@egec.org

• Cannur Bozkurt, JESDER: cannur.bozkurt@armonidanismanlik.com

• Ural Halaçoğlu, ZORLU ENERGY: ural.halacoglu@zorlu.com

or via website Contact page