Petratherm Managing Director Terry Kallis says the memorandum of understanding (MoU) is a tremendous vote of confidence for the geothermal company: “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.”
The geothermal MoU involves:
- A cooperative development of geothermal electricity producing projects on the Iberian Peninsula (Spain and Portugal) and the Canary Islands;
- Direct and external geothermal exploration costs to be shared on a 50/50 basis and a separate company established to cover each project; and
- Creating a technical committee from both parties to oversee geothermal exploration and development.
For Tenerife, Petratherm España’s most advanced Spanish geothermal project, there are special considerations including: Enel Green Power Spain contributing 50% of all exploration costs to date and ongoing costs; and funding the first deep production well in return for a majority equity stake in the project.
Enel Green Power has over 800 MW of geothermal capacity in operation and a further 300 MW geothermal power in project development. Enel Green Power is part of Enel, a large Italian utility with operations in 23 European countries and annual revenues of over €60 billion.