CORPORATE NEWS

Daldrup & Söhne AG receives drilling contract from the City of Frankfurt to explore the local geology

• Contract value around 3.4 million euros
• Research drilling to explore geothermal potential for heating Frankfurt buildings
• BMWK presents key issues paper on the promotion of geothermal energy

Oberhaching / Ascheberg, 14 December 2022 - Daldrup & Söhne AG (ISIN DE0007830572), drilling technology and geothermal specialist, has received an order from the city of Frankfurt am Main for a research well on the Rebstockbad site. The purpose of the borehole is to determine the geothermal potential and to gain scientific knowledge about the details of the geological site conditions down to a depth of approx. 800 m. The data obtained during the borehole will be used to determine the geothermal potential. The results obtained during the drilling will enable the City of Frankfurt to make a well-founded estimate of the total heat potential available and the effort required to extract geothermal energy from the subsoil. The contract value for Daldrup & Söhne AG is around 3.4 million euros. The drilling work has already begun.

Frankfurt stands on hot ground

Based on the results obtained, geothermal projects can potentially be realised. If the geological and geothermal conditions are right, the newly built Rebstockbad, for example, could possibly be supplied with climate-friendly geothermal heat. According to current knowledge, it is already very hot under Frankfurt at depths of only 800 m, with temperatures ranging from 40 to 60°C.

Geothermal turbo for Germany: BMWK presents key issues paper

Several recent studies by German research institutions make it clear that geothermal energy has the potential to cover a large part of Germany's heating demand.

According to the study "Roadmap deep geothermal energy for Germany" by Fraunhofer and Helmholtz, the market potential in Germany opens up expansion targets of well over 300 TWh of annual work or 70 GW of installed capacity, which corresponds to around 25 % of the total heat demand. According to the roadmap, investments of about 2.0 to 2.5 billion euros per GW of installed capacity from public and private households will be needed over the next ten years to build up a deep geothermal generation infrastructure and to connect it to municipal distribution infrastructures for heat. This will enable competitive heat production costs of < 30 EUR/MWh to be achieved.

Expeditious approval procedures and expansion of funding programmes

The German Federal Ministry for Economic Affairs and Climate Protection (BMWK) wants to support the sector in rapidly exploiting this potential and facilitate investments with its eight measures in the key points paper "Geothermal energy for the heat transition". The goal is to decarbonise at least half of the heat that is currently still generated from natural gas, oil and coal (over 75 %) by 2030. The need to replace imported natural gas in particular is enormous.

For the BMWK, geothermal energy is one of the key technologies for generating space heating, hot water and process heat in a secure, economical and decentralised manner. According to the Leibnitz Institute for Applied Geophysics, 587 TWh/year (2,111 PJ) alone must be replaced from natural gas, oil and coal in order to achieve the climate protection goals in the space heating/hot water sector. The measures proposed by the BMWK include accelerating approval procedures, expanding support programmes such as the BEW and the EEW, and mitigating the risks of geothermal drilling. By 2030, this means at least 100 medium-deep and deep geothermal projects. This corresponds to a multiplication compared to the current pace of expansion.

About Daldrup & Söhne AG

Daldrup & Söhne AG (ISIN: DE0007830572, WKN: 783057) with a corporate history spanning more than 75 years is a specialist provider of drilling and environmental services and ranks as one of the leading companies in Germany. Its activities are divided into the business divisions Geothermics, Raw Materials & Exploration, Water Extraction as well as Environment, Development & Services (EDS). The Geothermics business division provides drilling services for near-surface geothermics (especially geothermal probes of heat pumps), along with drilling services for deep geothermics up to 6000 m, in order to utilise the geothermal energy accessible in this way for electricity and/or heat generation. In the Raw Materials and Exploration business division, the bores made by Daldrup & Söhne AG serve for exploring and developing fossil fuel deposits (especially coal and gas) as well as mineral resources and ores (e.g. copper and gold). The Water Extraction business division comprises well construction for the extraction of drinking, service, curative, mineral, boiler-feed or cooling water as well thermal brine. The Environment, Development & Services (EDS) business division comprises special environmental engineering services such as the hydraulic clean-up of contaminated sites, the drilling of gas extraction wells for recovering waste dump gas, the provision of groundwater quality measuring points or the installation of water purification plants.

The shares of Daldrup & Söhne AG are listed in the Scale (sub-segment in the open market of the Frankfurt Stock Exchange) and the respective index of selection Scale30.

Disclaimer

This publication represents neither an offer for sale nor a call to submit a tender for the purchase or underwriting of securities. This publication and the information it contains is not intended for direct or indirect dissemination in or within the United States of America ("USA"), Canada, Australia or Japan.

Press & Investor Relations contact

Daldrup & Söhne AG

Falk v. Kriegsheim

     Fon +49 (0)2593-9593-29

     Fax +49 (0)2593-9593-60

Bajuwarenring 17a   ir@daldrup.eu

82041 Oberhaching   www.daldrup.eu