March 3 2010
Petratherm has formed a powerful partnership with Europe’s second largest utility to significantly bolster its geothermal energy credentials on the world stage.
In a major coup for the South Australian company, Petratherm has signed a memorandum of understanding (MoU) with Enel Green Power to jointly assess and develop new and existing electricity producing projects across Spain and Portugal.
Enel Green Power forms part of utility giant Enel, the largest utility in Italy and second largest in Europe with operations in 23 countries and annual revenues of over €60 billion.
Petratherm Managing Director Terry Kallis said the landmark agreement is a tremendous vote of confidence for the company.
“This is a strong third party endorsement of the company’s capabilities and of the quality geothermal prospects it has carefully developed over the past two years of investment in Spain,” he said.
“Enel Green Power is at the global forefront of conventional geothermal production and part of a company that is one of the world’s largest utilities.
“This company brings huge amounts of experience in geothermal and European markets along with significant funds to the table. This is an important milestone for Petratherm and it clearly puts us on the European renewable energy map.”
Enel Green Power is a world leader in geothermal power generation with more than 800MW of capacity operating. There is a further 300MW in project development.
The MoU involves:
• a cooperative development of electricity producing projects on the Iberian Peninsula (Spain and Portugal) and the Canary Islands;
• direct and external exploration costs to be shared on a 50/50 basis and a separate company established to cover each project;
• creating a technical committee from both parties to oversee exploration and development.
For Tenerife, Petratherm España’s most advanced Spanish project, there are special considerations including:
• Enel Green Power Spain contributing 50% of all exploration costs to date and ongoing costs
• funding the first deep production well in return for a majority equity stake in the project.
Enel Green Power has extensive experience in the Spanish sector and owns the only local electricity utility Endesa on the island of Tenerife.
Petratherm’s Spanish Projects
Tenerife
Petratherm España has three Geothermal Exploration Licenses (GELs) on Tenerife in Spain’s Canary Islands. Data from an extensive magnetotelluric survey across the volcanic island is being analysed to locate a prospective site for a production well. Petratherm España is searching for hot fluid where there is potential for a conventional volcanic heat-based project for power generation.
Geo Madrid District Heating Project
Petratherm has an agreement with the Madrid Regional and Spanish governments to progress the 8MW Madrid Geothermal District Heating (GDH) project. Petratherm’s GDH project was highlighted as one of six renewable energy projects of interest within the Madrid Regional Government’s Renewable Energy Cluster, which is seeking to advance renewable energy projects in the Madrid region.
Barcelona
Petratherm has four geothermal investigation permits covering areas within the Valles and Abro Basins near the city of Barcelona. The Montbui area is well known for its thermal spas. The permit areas are located approximately 30km north-east of Barcelona and in close proximity to major electricity transmission infrastructure with a capacity in excess of 2,000MW.
About Enel Green Power and the Enel Group
Enel operates in the production of electricity and gas in 23 countries on four continents.
Enel is the second largest European listed utility company by installed capacity and has some 1.2 million investors. The group is among the world’s largest utilities by market capitalisation.
Enel Green Power was created to develop and manage renewable energy generation at an international level. Installed capacity from wind, solar, geothermal, hydroelectric water flow and biomass energy sources is over 4,500MW and there are over 500 plants in operation or under construction.
Enel is the largest utility in Italy – the first country to put geothermal energy to industrial use and the fourth largest user of renewable energy in Europe. The first industrial geothermal plant was installed in Larderello (Tuscany) in 1913. Enel Green Power has 31 geothermal plants in Tuscany with a capacity of 665MW, providing an annual production of 5 billion KWhs. Enel Green Power has geothermal exploration works and plants under construction or in operation in Italy, USA, Chile and El Salvador.
MEDIA CONTACT:
Terry Kallis, Petratherm Limited, 08 8274 5000
Kieran Hall, Hughes Public Relations, 08 8412 4100 or 0422 147 151
www.petratherm.com.au
