RCS - GETECH Group plc - Agreement to Jointly Evaluate Geothermal Projects

GetechAnnouncement

10/01/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230110:nRSJ1629Ma&default-theme=true

RNS Number : 1629M  GETECH Group plc  10 January 2023

10 January 2023

Getech Group plc

("Getech" or the "Company")

 

Agreement to Jointly Evaluate Geothermal Energy Projects

 

Getech (AIM : GTC), the geoenergy and green hydrogen company, is pleased to
announce the signing of a Strategic Collaboration Agreement (the "Strategic
Agreement") with Eavor Technology Inc. ("Eavor"), a global geothermal
technology company (together the "Parties").

 

The Strategic Agreement will see the Parties work together to locate and
de-risk multiple closed-loop geothermal projects for development across Latin
America, a region with inherent strong heat-flow potential and rapidly growing
green energy demand. See information included in this video:
https://getech.com/wp-content/uploads/2023/01/Getech-Eavor-a-Strategic-Geothermal-Partnership.mp4
(https://getech.com/wp-content/uploads/2023/01/Getech-Eavor-a-Strategic-Geothermal-Partnership.mp4)
.

 

Highlights:

·    The Parties will combine their highly complementary, unique,
proprietary geothermal solutions, skills and technologies to deliver the
agreed work:

o  Getech will deploy its industry-leading geoscience gravity and magnetics
database, its proprietary Heat Seeker® software package and its asset
analytics skills.

o  Eavor will deploy its closed-loop geothermal energy production system,
Eavor-Loop™, as well as its growing knowledge base and proprietary
technology for identifying and qualifying the best locations for geothermal
energy production.

·    The Parties will identify and screen the most technically and
economically favourable Latin American geothermal sites for development as
sources of clean, baseload and flexible energy for heating, cooling and green
electricity.

·    Priority will be given to locations where multiple closed-loops can
be deployed, in order to allow for quick scale-up and to minimise investment.
Value can then be built by advancing assets through commercial and technical
feasibility, and where appropriate, securing licences.

·    The Parties will retain the commercial optionality to either realise
asset value pre-development through farm-down/sale to a third party (retaining
the potential to provide ongoing development support) or to proceed as
development investors.

 

Geothermal energy represents a significant growth opportunity for Latin
America and the Caribbean, with the Inter-American Development Bank noting
geothermal potential in the region between 55GW and 70GW, most of which
remains unharnessed.

 

Getech will use its foundation geospatial and economic modelling skills to
locate and quantify aboveground demand for heat and/or power. The Company will
then combine this analysis with its unique geoscience data, proprietary heat
flow models, and spatial analytic software, to deliver integrated geothermal
solutions.

 

 

 

Dr Jonathan Copus, Getech CEO said:

"This exciting agreement with Eavor is an important first step in building
Getech's global geothermal asset portfolio. By integrating our geoscience data
and geospatial/economic modelling skills with Eavor's development technology,
it will be possible to establish geothermal development assets of significant
scale.

 

Having located and de-risked the development of these assets, Getech will
retain the option to unlock value either through their sale to a third-party
developer, or proceed to participate in their development, thereby expanding
our geoenergy and green hydrogen project investment portfolio.  Where
appropriate, we will also work to expand project value by identifying
co-location opportunities that leverage our expertise in green hydrogen
production.

 

This collaboration agreement builds on a strong relationship we have
established with Eavor by providing them with our foundation products and
services. It illustrates how we can unlock strategic partnerships, thereby
bringing transformational value to Getech shareholders."

 

John Redfern, Eavor CEO said:

"We are currently focused on the development of a subset of high-quality
geothermal projects, constituting a fundamental step in our work to
commercialise and "productise" the Eavor-Loops™ technology. Our ultimate
goal is for hundreds of companies to develop Eavor-Loops™ around the world,
including in Latin America.

 

We believe that our strategic partnership with Getech, under which we are
collaborating in the evaluation of a large pipeline of fully qualified
projects, will facilitate this. We are excited by the prospect of accelerating
the market adoption of Eavor-Loop™ and, in turn, enabling many countries and
companies to be more aggressive in a shorter timeframe with their own energy
transition plans to net zero."

 

 

For further information, please contact:

 

 Getech Group plc                                 Tel:  0113 322 2200

 Jonathan Copus, Chief Executive

 Cenkos Securities plc

 Neil McDonald / Pete Lynch (Corporate Finance)

 Michael Johnson / Dale Bellis (Sales)            Tel:  0207 397 8900

 Camarco                                          Tel:  0203 781 8331

 Tom Huddart / Toby Strong / Charles Dingwall

 

 

Background information:

 

What is geothermal energy?

Geothermal energy is a renewable, clean energy source derived from inside the
earth. It can provide nearly unlimited low-carbon energy with widespread and
constant availability regardless of the weather or time of day. This sets it
apart from intermittent renewables such as wind and solar.

 

Depending on its characteristics, geothermal energy can be used for heating
and cooling purposes or be harnessed to generate clean electricity. It can
deliver both baseload and dispatchable energy and can be utilised in
industrial, agricultural, commercial, or domestic settings. Electricity can be
fed into the grid or used for green hydrogen generation. Heat can be
distributed via district heating networks or via pipework to local
agricultural or industrial users.

 

For further information, see this video:
https://getech.com/wp-content/uploads/2023/01/Getech-Geothermal-Accelerating-the-Energy-Transition.mp4
(https://getech.com/wp-content/uploads/2023/01/Getech-Geothermal-Accelerating-the-Energy-Transition.mp4)
.

 

About Heat Seeker®

Heat Seeker® uses advanced GIS workflows and machine learning to integrate
geophysical, geological, commercial and social data to define the optimal
location for geothermal developments. This innovative offering brings together
Getech products originally developed for customers in the petroleum industry,
which through investment have been repurposed to locate, de-risk and develop
sources of low carbon energy. Heat Seeker® enables the rapid identification
of sites which are highly prospective for geothermal energy - lowering risk,
increasing profit-margins, and ultimately reducing payback times and returns
in geothermal projects.

 

About Eavor-Loop™

Eavor-Loop™ is a closed-loop geothermal energy extraction system which works
like a large-scale subsurface radiator to collect heat from the earth via
conduction, and to generate electricity and commercial-scale heating and
cooling. A proprietary working fluid is contained and circulated within the
closed loop to create an efficient radiator, much like a vehicle radiator
circulates fluid in a closed loop. Being an industrial scale geothermal
system, it mitigates many of the issues with traditional geothermal systems,
which rely upon using wells to produce brine from a subsurface aquifer. The
system can be utilised globally to unlock the world's first truly scalable
form of clean, baseload and dispatchable power.

 

A single Eavor-Loop™ has the potential to provide between 2MW and 10MW of
electrical power. With the capacity to include 10 Eavor-Loops per well pad,
the surface footprint required for 1GW of power generation would be as small
as 0.5 sq km.

 

What are closed-loop geothermal projects?

All geothermal systems use ground loops to capture the temperature of the
earth to provide heating and / or cooling. There are several different
approaches to ground loop design, but they all fall under two basic
categories: closed-loop and open-loop. See 'About Eavor-Loop™' above for
more information on closed-loop systems.

 

 

Notes to editors:

 

Getech (AIM: GTC) applies its world-leading geoscience data and unique
geospatial software products to accelerate the energy transition by locating,
developing and operating geoenergy and green hydrogen projects. For further
information, please visit www.getech.com (http://www.getech.com) .

 

Eavor (pronounced "Ever") is a technology-based energy company led by a team
dedicated to creating a clean, reliable, and affordable energy future on a
global scale. Eavor's solution (Eavor-Loop™) represents the world's first
truly scalable form of clean, dispatchable, baseload capable, and flexible
power. Eavor achieves this by mitigating or eliminating many of the issues
that have traditionally hindered geothermal energy. Eavor instead circulates a
benign working fluid that is completely isolated from the environment in a
closed-loop, through a massive subsurface radiator. This radiator simply
collects heat from the natural geothermal gradient of the Earth via
conduction. Eavor has been supported by equity investments made by several
leading global energy producers, investors, developers, and venture capital
funds including Vickers Venture Partners, bp Ventures, Temasek, Chevron
Technology Ventures, BHP Ventures, Helmerich & Payne, Precision Drilling,
BDC Capital and CHUBU. Further details can be found at www.eavor.com
(http://www.eavor.com.) .

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

Reach is a non-regulatory news service. By using this service an issuer is confirming that the information contained within this announcement is of a non-regulatory nature. Reach announcements are identified with an orange label and the word “Reach” in the source column of the News Explorer pages of London Stock Exchange’s website so that they are distinguished from the RNS UK regulatory service. Other vendors subscribing for Reach press releases may use a different method to distinguish Reach announcements from UK regulatory news.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  NRAFKLLBXFLBBBK