COFELY Secures UK Government Funding for Southampton Geothermal Project

LONDON, January 25, 2011 - COFELY District Energy, a subsidiary of COFELY UK, the energy
and environmental efficiency services company of GDF SUEZ, has secured
GBP200,000 from Department of Energy and Climate Change's (DECC) Deep
Geothermal Challenge Fund to part-fund the refit of the Southampton District
Energy Scheme's deep geothermal well.

The Southampton District Energy Scheme, operated by COFELY
District Energy in partnership with Southampton City Council, has been in
operation since 1986 and serves a range of public and private properties in
Southampton. It utilises heat from a 1.7km deep geothermal spring -
supplemented by large scale combined heat and power (CHP), biomass and
conventional boilers - to generate electrical power, hot water and chilled
water (tri-generation).

Simon Woodward, Chief Executive of COFELY District Energy,
commented, "This additional Government funding is great news for both
Southampton and its District Energy scheme. The award of this grant
recognises the significant investment of time and money we have already made
in the scheme. It also provides a vital source of funding which will enable
the completion of a long-term aim of being able to carry out key improvements
to the scheme. These improvements will boost efficiency and reduce carbon
emissions even further."

Editors' notes: the Southampton District Energy Scheme serves
buildings within a 2km radius of the energy centre, via 12km of insulated
distribution pipe. Users include TV studios, a hospital, a university, a
shopping centre, a civic centre, residential buildings and a hotel. The
Scheme produces over 40,000 MWh of heat per annum, 26,000 MWh of electricity
from the CHP plant, more than 7,000 MWh of chilled water.

Contact details

Niel Scott +44(0)20-7633-2300 www.cofely-gdfsuez.co.uk

Contact details: Niel Scott +44(0)20-7633-2300 www.cofely-gdfsuez.co.uk