CORPORATE NEWS

Daldrup & Söhne AG receives further order for geothermal drilling from Stadtwerke Schwerin

- Schwerin: CO2-neutral energy supply even for heat

- Daldrup is a specialist for the development of geothermal aquifers also in Northern Germany

Oberhaching / Ascheberg, October 5, 2020 - The drilling technology and geothermal energy specialist Daldrup & Söhne AG (ISIN DE0007830572) has been awarded a contract by Energieversorgung Schwerin GmbH & Co. Erzeugung KG (EVSE), a subsidiary of the Stadtwerke Schwerin GmbH (SWS), to drill an injection well. The project is part of the state capital's climate initiative. Approx. 15 % of Schwerin's district heating requirements will be covered in future by the integration of geothermal energy. The order value for Daldrup & Söhne AG is around EUR 4 million. The work in Schwerin-Lankow will start in mid-October 2020.

The well is to be drilled to a depth of around 1,300 meters and completed within a good four months. After the results of the first well in 2018 exceeded expectations, Energieversorgung Schwerin is using geothermal energy to further expand its climate-friendly heat supply. To this end, the existing district heating network is also being supplied with geothermal, regional heat. Geothermal energy helps to avoid CO2 emissions from the outset, and considerable quantities of the pollutant sulfur dioxide as well as particulate matter and nitrogen oxides are not produced at all.

Clear goal: Schwerin wants to become CO2-neutral by 2035
For Stadtwerke Schwerin (municipal utility), the use of geothermal energy is a contribution to sustainable and climate-friendly energy generation on the way to the state capital's targeted CO2 neutrality by 2035. The project is funded by the state of Mecklenburg-Vorpommern in accordance with the Climate Protection Funding Guidelines and the Climate Protection Loan Program.

Considerable geothermal potential in the North German Basin
Daldrup & Söhne AG sees in the North German basin substantial, promptly and relatively simply developable potential for the use of the deep geothermal energy by power supply companies as well as commercial and industrial large customers. Daldrup & Söhne AG takes part already in numerous advertisements and stands in active exchange with public utilities and investors. The North German basin is bordered by the coasts of the North Sea and Baltic Sea as well as through the low mountain range thresholds in the south and includes certain regions in the federal states of Mecklenburg-Western Pomerania, Brandenburg, Berlin, Lower Saxony, Hamburg and Schleswig-Holstein. The usable aquifer area available in the subsoil is approx. 135,000 km² and, depending on the region and development depth, has temperatures between 131 F and 329 F (55 to 165 Celsius), with a technical potential of 911 TWh/a. These are very good conditions for direct heat utilization. Daldrup & Söhne AG is specialized in developing this renewable energy source and making it available to the people in the regions.

About Daldrup & Söhne AG
Daldrup & Söhne AG (ISIN: DE0007830572, WKN: 783057) with a corporate history spanning more than 70 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 6,000 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 segment of the Frankfurt Stock Exchange (sub-segment in the open market).

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

Bajuwarenring 17a ir@daldrup.eu
82041 Oberhaching www.daldrup.eu