Geothermal Energy in the Netherlands Ans van den

Geothermal Energy in the Netherlands Ans van den Bosch Deputy Director, Heat and Subsurface

Topics 1. Concept Climate Agreement 2. Geothermal Energy as a source 3. Policy for geothermal energy 4. What’s next?

1. Concept Climate Agreement

Climate Agreement Electricity Industry Mobility Agriculture Climate Taskforce Society Built environment

Climate Agreement Step by step sustainable For landlords and tenants House owners Housing cooperation's trigger transition Well insulated comfortable homes Favorable loans and subsidies Built Environment Equal monthly expenses, Better insulated rental property Approach per district Municipality develops strategy per district before 2021 Home related financing Utility buildings Roadmaps for owners of large buildings Renovations payed by lower energy bill Start 100 districts of gass To sustainable heat sources: Geothermal Aquathermal energy Sustainable residual heat Sustainable electricity Joint sustainable energy production Knowledge sharing Participation A solution for every building type Good investment climate for landlords Smart and cheap renovations 5

Concept Climate Agreement Built Environment • Assignment: in 2030 3, 4 Mton CO 2 reduction, 1, 5 mln houses without natural gas (8 mln in 2050) • • Approach 1: District by district • Local governments are in charge • Heat Transition visions in 2021 (which district, which alternative) • Supported by ao €, RES and Heat Expertise Centre Warmte (ECW) Approach 2: Individual • Home owner is in charge: during natural moments (sale, rental, renovation) • Supported by ao ISDE subsidy and energy counters

Alternatives for heating with natural gas Collective Heat <70 o. C Residual heat from datacentres, thermal energy storage, surface water, geothermal Collectief Collective Heat >70 o. C + All Electric I s o l a t i e Industrial residual heat, biomass en geothermal Heat pumps, infra-red, “zero energy” Individueel Sustainable gas: Biogas, power to gas (H 2) Also: pellet stoves and biomass boilers Ministerie van Economische Zaken 18 juni 2021 7

Heat options per household 2030 target 2017 projection CA 2050 target CA Central heating gas fired 91% 80% 65% 0 -15% Hybrid heat pump 1% 4% 9% 5 -35% All electric heat pump 3% 10% 12% 30 -60% District Heating * 5% 7% 15 -45% Individual biomass boiler 0% 0% 0% 0 -5% * (biomass, geothermal, residual industrial heat) 8

Sources for district heating Now › Co Heat Generation › Waste incineration (AVI) 55% renewable › Biomass › Gas (temporary/peak) › Heat/Cold Storage (WKO): small projects 50 -200 houses Development › Geothermal › Aqua Thermal › Industrial waste heat › Residual Heat Data centers

2. Geothermie as a heat source Users of geothermal energy

Potential There is potential …. But can we realise it?

Facts › First succesful drill in 2007 › 22 projects in use (≈4 PJ) › 5 in test phase, 11 in preparation › Current depth between 2000 and 3000 m › Temperatures 70 – 90 graden C › Projects becoming larger and larger: >30 MW › Mainly horticultural

Licenses Several licenses needed Exploration/production/storage (who gets monopoly in area) 2. Environmental license (where is drilling allowed) 3. Production plan (how wil production take place) 1. Now 51 exploration licenses delivered, 28 in pending › So many new developments are lined up! › 13

Developments › Increase of portfolio-operators › Increasing role for EBN › Projects in process industry in 3 – 5 year: higher temperatures (ultra deep) › Also drilling to shallower depths for use in lower temperature district heating › Future for geothermal in the ‘built environment’ 14

Challenges – Technical (corrosion, blockages, seismic activity, permiability) – Legal (licenses, regulations, etc. ) – Communication (social acceptance) – Organisation (market model, professional operators, connection to district heating) 15

Geothermal in de built environment • Substantial share in district heating in 2050 (15 tot 45%) • Geothermal: important source for district • Without feed in district heating, little growth geothermal energy • Still no district heating system connected to geothermal 2030 2050 Letter to Parliament 15 PJ 110 PJ Climate Agreement 20 PJ 135 PJ Masterplan (sector) 50 PJ 200 PJ • 30 PJ Industry • 80 Built Environment & Horticultural Sector

3 Policy 17

Letter to Parliament, Feb 2018 Target: 15 PJ in 2030; 110 PJ in 2050 Strengthen and accelerate! On top of current policy: • Special regulations for geothermal (before equal to oil and gas) • Possible participation of EBN (state participation) • Exploration of subsurface: SCAN • Innovation Roadmap › And: Masterplan Aardwarmte by sector 18

Knowledge and Innovation Road Map SCAN 19

Green deal UDG › 6 consortia › Exploration for possibility Ultra Deep (UDG) › Disclose potential Dinantien › Deeper than 4000 m 20

Subsidy & guarantee Guarantee Scheme To cover the geological risc (P 90) 7 rounds, start in 2010 • 28 projecten submitted, 11 gerealised • M€ 147 cumulative reserve • 4 claims SDE+/SDE++ • • Subsidises production of renewable energy 27 projects, 770 MWth 21 projecten operational (2019) 0, 033 euro/Kwh subsidy for geothermal 21

Facilitate local decision making › RES: picturing availability heat sources (including geothermal) › Guideline: model & guideline regarding choice of technique (including district heating) ▪ Supporting decision making process local governments › ECW: operational support: › Use of guideline § Designing transition visions Heat, plans for execution § Practical problems › One joint approach › Quick start up for all local governments

New Legislation: Warmtewet 2. 0 › Different roles and responsibilities are not yet defined. › Therefore, it is difficult to arrange the financing of new infrastructure. › This will be implemented in new legislation › Also: agreements on sustainability in new legislation. 23

4 What’s next? 24

But we’re not there yet…. Geothermal in Built Environment has a hard time starting up… › Geothermal and district heating are closely connected › Apart from technical problems, also “governance” issues: § § § Public acceptance new district heating system Dimensioning: who is in the lead? Above ground market order: who is responsible for what? Practice in pilots in built environment (promise to Parliament) › Collaborate with all players involved! › 25

Thank you for your attention › Questions? 26