Angus Energy plc and its partner Saltfleetby Energy Ltd (SEL) have entered into a non-binding MOU with Aleph Energy and Aleph Commodities for £12 million to develop the Saltfleetby gas field near the coast of Lincolnshire. bit.ly/2VhC7ab
Aleph Energy and investment company Aleph Commodities will also procure a further £8m for a new off-site geothermal project which Angus has been developing during 2020.
Saltfleetby gas field is operated by Angus which holds a 51% working interest with SEL owning 49%. Angus will also appoint Aleph as its commercial and technical adviser.
Chief executive George Lucan said that Saltfleetby was a “considerable opportunity” with the potential to deliver between £75m (P90) and £250m (P10) of gross revenues to all parties over its remaining life.
“It is also exciting for us to have a potential partner who marries technical and commercial skills as well as proven access to considerable pools of private capital.”
Angus said the hydrogen pipeline had been laid and progress continued with the final 150 metres of steel stretch of the pipeline. The company hopes for first gas during the first half of 2021.
The partners believe that the Saltfleetby gas development would help displace imported liquified natural gas (LNG) and create local employment with the Hydrogen to Humber (H2H) Saltend initiative becoming a UK economic hydrogen hub.
For its geothermal project, Angus employed Soluzioni Hydrocarburi SA in June 2020 for a report on the potential repurposing of two Saltfleetby wells, SF05 and SF08, for heat recovery.
The findings showed a potential thermal power output for the doublet (two wells) of between 1.34MW and 6.98MW which Angus said could power a portion of the site for the next decade.
Angus has also identified a further potential large scale geothermal project separate from Saltfleetby and located in an area of “high geothermal gradient.”
The company is currently evaluating possible sites, engaging in preliminary discussions with landowners, and working on well design, surface facilities and infrastructure including initial contacts with the electricity grid connection provider. Angus is also reviewing regulatory and planning frameworks and preparing initial submissions.
Angus said it saw a large new market for geothermal energy and wanted to be “an early entrant to the field.”
Mr Lucan added: “We see in geothermal, in particular, a natural extension of our drilling and subsurface geological expertise, our teams’ experience of working safely in high pressure and high temperature environments subject to rigorous environmental standards and of dealing with local planning issues with extreme sensitivity.”