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Feasibility Report of Fortissat Community Minewater Geothermal Energy District Heating Network

Description
ISBN9781786521316
Official Print Publication Date
Website Publication DateMarch 23, 2016

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ISBN 978 1 78652 131 6 (Web only publication)
PPDAS 67426

This document is available in pdf format (10.8MB)
Appendices are available in pdf format only (33.2MB)
Drawings are available in pdf format only (61.7MB)

Contents

Acknowledgements

Preface

Executive Summary
Introduction
Project Aims
Site and Study Area
Geothermal Supply
District Heating Network
Development Options
Delivery Model
Next Steps

Chapter 1: Introduction
1.1 Overview of Proposal
1.2 Project Team and Structure
1.3 Report Structure

Chapter 2: Environmental Baseline
2.1 Introduction
2.2 Site
2.3 Surrounding Context
2.4 Proposed Development

Chapter 3: Geothermal Supply
3.1 Introduction
3.2 Minewater Geothermal Energy - Basic Principles
3.3 The Resource - The Mine System
3.4 Geology, Hydrogeology and Drilling
3.5 Option Appraisal for Geothermal System

Chapter 4: District Heating Network
4.1 Introduction
4.2 Heat Demand Analysis
4.3 Preliminary Network Analysis
4.4 Preliminary Scenario Appraisal
4.5 Final Network Design
4.6 Energy Centre Design

Chapter 5: Development Options
5.1 Introduction
5.2 Option 1 - 'Preferred'
5.3 Option 2 - 'Alternative'
5.4 Options Summary Table
5.5 Option Comparison - Passive Treatment vs Reinjection
5.6 Risk Management
5.7 Opportunities
5.8 Carbon Audit

Chapter 6: Delivery Model
6.1 Summary
6.2 Overview of Proposal
6.3 Project Evolution
6.4 Metering and Tariff Options
6.5 Overview of Business Models and Legal Structures
6.6 Delivery Structure Options
6.7 Pros and Cons of Commercial Structures
6.8 Structure of SPV
6.9 Financial Model - Medium Term
6.10 Revenue Streams
6.11 Initial Results of Financial Analysis
6.12 Sensitivity Analysis
6.13 Financial Model - Long Term
6.14 Conclusions from Financial Modelling

Chapter 7: Next Steps
7.1 Introduction
7.2 Geothermal Resource - Confirming the Heat Supply
7.3 Community Engagement - Heat Demand
7.4 District Heat Network (DHN)
7.5 Business Plan
7.6 Indicative Programme
7.7 Funding Requirements

References

Figure List
Chapter 1: Introduction
1.1 Project Team Structure
Chapter 2: Environmental Baseline
No Figures
Chapter 3: Geothermal Supply
3.1 Schematic Diagram of a generic minewater geothermal energy doublet system
3.2 Geothermal gradient from bottom-hole temperature-depth measurements in collieries in the Midland Valley.
Chapter 4: District Heating Network
4.1 Shotts district heating load duration curve
4.2 Network C (Allanton and Hartwood) district heating load duration curve
4.3 Peak daily demand profiles (Network C)
4.4 Yearly diversified demand profile (Network C)
4.5 Indicative energy centre block diagram
4.6 Heat supply by source type
Chapter 5: Development Options
5.1 Illustrative diagram of passive minewater treatment system
5.2 Illustrative diagram of doublet system with production and injection well(s)
Chapter 6: Delivery Model
6.1 Gateshead Energy Centre
6.2 Commercial structure options
6.3 Relationship of control to risk
6.4 Tornado diagram showing IRR sensitivities for Option 1C
6.5 Tornado diagram showing 20 year aggregate cash flow sensitivities for Option 1C
Chapter 7: Next Steps
7.1 Indicative project timeline with a focus on the Development Stage

Table List
Chapter 1: Introduction
No Tables
Chapter 2: Environmental Baseline
No Tables
Chapter 3: Geothermal Supply
3.1 Summary of mined workings within coal seams within and adjacent to the study area
3.2 Minimum, intermediate and maximum geothermal potential (in kWh) of the water stored in the in the WNMA and WRSM mines.
3.3 Flow pathway analysis for Geo-Option 3
3.4 Advantages and disadvantages of Geo-Option 3
3.5 Advantages and disadvantages of Geo-Option 6
Chapter 4: District Heating Network
4.1 Summary of Study Area Heat Demands
4.2 Published fuel costs from price comparison website
4.3 Summary of technical parameters and potential revenue for each of the nine heat supply options
4.4 Estimates of required mine-water flow rates for heat pumps at 45% of the diversified peak
4.5 Indicative heat pump outputs in kW for various flow rates and COP values
4.6 Technical parameters of network options
4.7 Indicative cost of heat production for various values of temperature raise
4.8 Required volume of thermal store for low and high temperature networks
4.9 DUoS time bands and charges for high voltage connection with Scottish Power Energy Networks, assumed to be half-hourly metered

4.10 DECC quarterly non-domestic electricity prices
4.11 Network pressure losses, pumping power and annual power consumption
Chapter 5: Development Options
5.1 Summary table of minewater geothermal DHN development options
5.2 Option comparison - Passive Treatment and Reinjection
5.3 Risk Register - Risks and mitigating actions associated with geothermal supply
5.4 Risk Register - Risks and mitigating actions associated with the district heating network
5.5 Risk Register - Risk and mitigating actions associated aspects of the project other than geothermal supply and the district heating network
5.6 BAU carbon emissions with 100% of heat generated from domestic gas heating systems
5.7 Projected carbon emissions
5.8 A low estimate of the carbon emissions savings associated different design options
Chapter 6: Delivery Model
6.1 Summary of the advantages and disadvantages of potential ESCO structures
6.2 District Heating Network Options
6.3 Water/Ground-source heat pump RHI Tariffs as of December 2015
6.4 CAPEX and OPEX figures as input to the financial model
6.5 Headline results for design options
6.6: Improvements in project IRR and aggregate 20 year cash flow when accounting for potential cost saving through implementation of a passive minewater treatment facility integrated with the geothermal DHN
6.7 Sensitivity testing on Option 1C for impact of key parameters on project IRR
6.8 Sensitivity testing on Option 1C for impact of key parameters on 20 sum net cash (NCF)
6.9 Capital equipment overhaul costs
6.10 Long term cash flow model
6.11 Long Term cash flow incorporating minewater treatment cost savings
Chapter 7: Next Steps
No Tables

Technical Appendices
Chapter 1: Introduction
A1 Glossary of Terms
Chapter 2: Environmental Baseline
A.2 Regulations, Guidance and Consultations
Chapter 3: Geothermal Supply
A3.1 Potential minewater heat recovery at Hartwood, North Lanarkshire
A3.2 Minewater Hydrology, Thermal Breakthrough, Modelling, and Minewater Hydrochemistry
A3.3 Field Monitoring and Laboratory Testing at Kingshill
A3.4 Minewater Analysis
A3.5 Minewater Treatment at Kingshill
A3.6 Site Visit to Kingshill
A3.7 Well Schematics
A3.8 Geothermal Supply Cost Assumptions for Financial Model
Chapter 4: District Heating Network
A4.1 DHN and Energy Centre Cost and Revenue Schedule for Financial Analysis
Chapter 5: Development Options
No Technical Appendices
Chapter 6: Delivery Model
A6.1 Site Visit to Shettleston
A6.2 Site Visit to Aberdeen Heat & Power
Chapter 7: Next Steps
No Technical Appendices

Drawing List
Chapter 1: Introduction
1.1 Location plan
1.1 Location plan
1.2 Land ownership and control
Chapter 2: Environmental Baseline
2.1 Water Features Survey (preliminary)
2.2 Planning designations
2.3 Natural Heritage Designations
2.4 Cultural Heritage Designations
2.5 Landscape Character
Chapter 3: Geothermal Supply
3.1 Wilsontown Main Coal Workings
3.2 Woodmuir Smithy Coal working extent
3.3 Outline 3D WNMA and WRSM
3.4 Armadale Coal working extent
3.5 Mill Coal working extent
3.6 Shotts Gas Coal working extent
3.7 Lower Drumgray Coal working extent
3.8 Middle Drumgray Coal working extent
3.9 Upper Drumgray Coal working extent
3.10 Outline of all 3D modelled surfaces
3.11 Mine workings in 3D
3.12 Option 1 (Geo-6, Kingshill): Production well with passive minewater treatment system
3.13 Option 2 (Geo-3, Hartwood): Production well and injection well(s)
Chapter 4: District Heating Network
4.1 Percentage of social rented properties
4.2 Preliminary Network Layout (Fortissat)
4.3 Potentially Viable Network Layout
4.4 Production well locations and target areas of demand
4.5 Network A and B Layout
4.6 Network C Layout
4.7 Indicative gas and electrical connections to Energy Centre
Chapter 5: Development Options
5.1 Option 1: Production well with passive minewater treatment system
Alternative Network Layouts A, B and C
5.2 Option 2: Production well and injection well(s)
Network Layout C
Chapter 6: Delivery Model - No Drawings
Chapter 7: Next Steps - No Drawings