Geothermal Engineering Limited (GEL), the UK’s leading geothermal power company, is set to deliver the first commercial quantities of zero-carbon lithium in the United Kingdom. Very recent tests have shown that the geothermal fluid within the deep geothermal wells already drilled at United Downs in Cornwall contained around 340 parts per million (ppm) of lithium, which makes it amongst the highest concentration of lithium found in any commercial geothermal lithium project in Europe.
GEL’s primary geothermal business of providing baseload geothermal electricity and heat produces a naturally hot geothermal brine from which lithium can be sustainably extracted onshore in the UK as a by-product. Utilising zero-carbon geothermal power to fuel the extraction process will avoid the water hungry evaporation ponds or carbon-intensive quarrying and extraction processes in the huge open-cast mines that are currently used to mine the majority of lithium produced today.
GEL aims to produce around 100 tonnes per annum (tpa) of Lithium Carbonate Equivalent (LCE) in late 2024 which will be ramped up to at least 1,000 tpa from this site as early as 2026. The company already has planning permission for two other geothermal projects in Cornwall and aim to rapidly expand production to over 12,000 tpa in the UK by 2030. This is enough to produce around 250,000 electric vehicle batteries for an average sized car*. To put this in context, this would have been 94% of the LCE needed to supply the 267,000 new Battery Electric Vehicles (BEVs) registered in the UK in 2022**.
The current production of lithium in Europe is far below what is needed to meet the expected demand for electric vehicles, with most of the lithium being supplied by refineries in China. The onshore or EU delivery of lithium is becoming a pressing issue for automotive manufacturers like VW, Ford and Jaguar Land Rover as the ‘rules of origin’ deadline, approaching in 2024, (currently) will require 60% of battery packs to come from the UK or Europe, else manufacturers will face fines from regulators.
Ryan Law, CEO of Geothermal Engineering Ltd, stated, “We are extremely excited by the high concentration of lithium that we have found in our geothermal wells in Cornwall as it will enable us to produce meaningful quantities of lithium without damaging the environment. Our ability to produce both zero-carbon lithium and zero-carbon baseload power will provide a foundation for the electric car market to be truly sustainable in the UK. The importance of our projects is now being
recognised by the Government with recent grant funding awards and secure contracts for the electricity we produce. This is helping us to secure the further investment required for a rapid roll out of projects to enable the UK to reach its ambitious targets.
Cornwall is in a unique position in hosting these significant lithium and geothermal reserves. We hope that establishing Cornwall as a significant hub for lithium-related activities alongside its exciting geothermal potential, new job opportunities and significant economic growth will be brought to the region.”
Jason Cheng, CEO and Co-Founder of Kerogen Capital, commented: “The high concentration of lithium found at United Downs underpins GEL’s potential to fulfill a significant portion of the UK’s lithium demand. It is an extremely exciting and significant development. Securing the production of domestic zero-carbon lithium will be crucial to the UK’s energy transition, as the demand for batteries for applications such as EVs and grid scale storage continues to grow. We look forward to supporting GEL during this next phase of growth.”
GEL was recently awarded £1.8m by the Automotive Transformation Fund (ATF) Scale up Readiness programme. These funds will be used to fund the 100 tonnes per annum units.
Notes to editors
* The average amount of lithium carbonate equivalent (LCE) per car is 47.4kg. Sources IEA, World Economic Forum, Reuters, Goldman Sachs. GEL production target is 12,000 tonnes of LCE per year. Therefore, number of cars per year is circa 250,000.
** According to the UK Government, 267,000 Battery Electric Vehicles (BEVs) were registered in 2022.
About Geothermal Engineering Ltd
Geothermal Engineering Ltd was established in 2008 to deliver deep geothermal heat and power projects in the UK and abroad. It consists of a team of geologists, engineers and community engagement specialists focused on innovative methods of delivering sustainable energy that benefits local communities. The company’s flagship project is at United Downs in Cornwall, where it has drilled to over 5kms and will switch on power in 2024. The company is backed by Thrive Renewables plc and Kerogen Capital.
www.geothermalengineering.co.uk
Kerogen Capital invests in GEL, the UK’s leading geothermal playerKerogen Capital is pleased to announce its investment into Geothermal Engineering Limited (GEL), the UK’s leading geothermal player to expand the development of deep geothermal electricity and heat production.
8th March 2023, Cornwall: Geothermal Engineering Limited (GEL), the UK’s leading developer and operator of geothermal plants, has obtained £15 million funding from Kerogen Capital (£12 million) and Thrive Renewables PLC (£3 million), subject to conditions. This will advance both the flagship project at the United Downs site in Cornwall and its Geogen geothermal development portfolio.
Ryan Law, Managing Director of Geothermal Engineering Ltd, said:
“Geothermal resources have the potential to produce carbon free electricity and heat 24/7 within UK borders and we are delighted to welcome this further investment in our journey to realising the huge potential of this important renewable energy source.
“We are excited to work with both local and national Government to maximise this opportunity and make the UK a world leader in geothermal energy. With its mining and industrial heritage, and geological expertise the UK is well placed to succeed.
“Alongside geothermal power and heat production, our trials at site suggest that there is also the opportunity to develop a strong, zero carbon domestic lithium industry linked to the power plants.”
Rt Hon Graham Stuart MP, Minister for Energy Security and Net Zero, said:
“Geothermal energy holds enormous untapped potential as a renewable energy source, with the ability to generate around-the-clock power and heat for UK households.
“This investment will help the UK realise the potential of this exciting resource, providing skilled green jobs and supporting local industry in Cornwall, while helping to deliver a cleaner energy future.”
The new funding will be used to complete power production at the United Downs plant by 2024, as well as prepare new geothermal sites in Cornwall which have recently received planning permission. In total, the investment will help to initiate 25 MWe of renewable electricity and 100 MWth of renewable heat across GEL’s portfolio by 2028.
Kerogen Capital, a private equity firm focused on international energy, will fund the investment through its dedicated energy transition platform, CelerateX. The investment is the latest in a string of investments it has made into geothermal developers and projects across Europe, building a leading portfolio in this emerging technology.
In addition to the current funding, renewable energy investment company, Thrive Renewables, made its first commercial investment of £3 million into United Downs in January 2020 to support final testing of wells at the site, as well as £0.47 million in 2021 to fund planning applications for additional potential geothermal sites.
United Downs and future projects
The United Downs project is expected to start producing power in 2024 and represents the UK’s first integrated deep geothermal power and heat project. The first plant will deliver 2MWe of baseload electricity and up to 10MWth of zero carbon heat to be used in a large housing development at Langarth, being developed by Cornwall Council. GEL successfully drilled and tested two wells at United Downs in 2019 and 2020, including a production well drilled 5km underground.
Beyond United Downs, GEL is also developing new geothermal projects across the county, each anticipated to deliver 5 MWe of baseload power and 20 MWth of renewable heat energy for the local area. The new plants will each take approximately 36 months to complete and together will produce enough electricity to power over 70,000 UK homes.
Geothermal in the UK
The UK has significant geothermal resources which, if harnessed, can play an important role in both the UK’s energy security and its transition to net zero. Geothermal technology offers a homegrown, low carbon and sustainable form of energy. Crucially, this technology is capable of generating 24/7 baseload power, enabling the UK to diversify its energy market whilst providing large scale and predictable capacity. Furthermore, the ability to feed into local heating networks for residents provides a solution to the UK’s longstanding challenge of decarbonising heat.
The development of the UK’s geothermal industry will benefit local communities by attracting new business, jobs and inward investment. The Renewable Energy Association and Arup have estimated* that the development of deep geothermal projects in the UK could fulfil the UKs entire residential demand for 100 years and create as many 10,000 direct and 25,000 indirect jobs by 2050.
Lithium discovery
GEL has also found significant concentrations of lithium within the deep geothermal fluid at United Downs and is working with partners to trial direct extraction (DLE) technology to extract this key battery mineral.
This discovery demonstrates the potential of geothermal to help drive the growth of a domestic lithium industry both unlocking the UK’s Net Zero goal and is aligned with the Government’s recent Critical Mineral Strategy.
Jason Cheng, CEO and Co-Founder of Kerogen Capital, said:
“We are very excited to be partnering with GEL which is developing the UK’s most advanced geothermal power and heat project.
“The UK has large geothermal natural resources with the potential to satisfy the UK’s entire heat demand, as well as playing a significant role in decarbonising heat and power. In addition, geothermal can provide security and independence from imported energy. We believe geothermal in the UK has enormous potential to create a new industry, grow a domestic supply chain and drive employment.
“The investment in GEL represents our third in the geothermal sector, following our backing of Yeager Energy (Netherlands) and GTML (Norway). Our in-house technical and commercial expertise position us uniquely to deploy in this exciting sector.”
Matthew Clayton, Managing Director at Thrive Renewables, said:
“Having provided the first commercial funding into United Downs, which has enabled it to reach the construction stage, we are delighted to make a further investment to get this ground-breaking project into operation.
“United Downs will provide vital renewable baseload power to replace coal and gas, reliable heat to the local community, and could be the start of a whole new sustainable industry across Cornwall bringing green jobs and investment into the county.
“As a pioneering clean energy investor, we are pleased to be part of this significant step in the UK’s transition to a cleaner energy system.”
– ENDS-
Notes for editors
* Gluyas et al., Keeping Warm: a review of deep geothermal potential of the UK, 2021
How geothermal power and heat is produced by GEL
To develop each of the future geothermal power plants, two deep wells will be drilled into the granitic rock beneath the site, the deepest of which will reach around 4.5 kilometres. Water is then pumped from the deepest well where temperatures are expected to be approximately 175°C. The steam produced is then fed through a heat exchanger at the surface and water is then re-injected into the ground to pick up more heat from the rocks in a continuous cycle. The extracted heat will be converted into electricity and supplied to the National Grid. Geothermal produces low-carbon, baseload (continuous, 24/7) electricity and heat energy, and is therefore distinguished relative to other intermittent renewable energy sources.
About Geothermal Engineering Ltd
Geothermal Engineering Ltd was established in 2008 to deliver deep geothermal heat and power projects in the UK. It consists of a team of specialised geologists and engineers focused on innovative methods of delivering sustainable energy that benefits local communities. This includes the United Downs Project and Jubilee Pool geothermal project at Penzance. Up until this latest investment, the United Downs project has cost £30 million, part funded by the European Regional Development Fund, Cornwall Council and Thrive Renewables plc.
www.geothermalengineering.co.uk
About Kerogen Capital
Established in 2007, Kerogen Capital is an independent private equity fund manager focused on the international energy sector. Since inception, Kerogen has raised over $2 billion in private equity and co-investment funds. Kerogen’s investors comprise a range of blue-chip institutions including endowment funds, foundations, pension plans, fund of funds, international corporations and family offices. Kerogen committed to Net Zero Carbon in 2020 and formed CelerateX, a dedicated energy transition platform, including the former GE Equity business in Asia. CelerateX focuses on building speed and scale in the decarbonisation and sustainability sectors to accelerate the path to Net Zero.
About Thrive Renewables plc
Thrive Renewables is a renewable energy investment company. Thanks to its community of over 7,000 investors – large and small – Thrive has been building and operating renewable energy projects in the UK for 29 years.
The company’s portfolio currently comprises 23 operational renewable projects, plus further renewable energy and storage projects in development. With assets under management of £96 million, its portfolio of wind, solar, hydro and other clean energy projects generated over 110,000MWh of electricity in 2021.
Vision: We believe in a clean, smart energy system powered by the investment of many.
Mission: To power the transition to a sustainable energy future by helping people meaningfully connect with clean energy projects.
Media Contacts
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Geothermal Engineering Ltd |
Sarah Mulder / Fire on the Hill |
+44 (0) 7720 401 466 / |
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Kerogen Capital |
Ben Brewerton / FTI Consulting |
+44 (0) 7703 329 963 / |
