The three courses of the program will be held over a three year time period from 2013-1015 at the University of El Salvador.

“Each course will be taken by 30 geothermal experts. The operation will also finance 10 scholarships for Salvadoran participants and another 10 scholarships for participants from other countries. The project, which was approved by the IDB Board of Executive Directors, will provide the only theoretical and practical graduate-level training in geothermal energy available in Latin America and the Caribbean.

In 2010, Universidad de El Salvador, together with LaGeo and support from Italy, offered a specialized degree course on a pilot basis. The new program will include an evaluation of this pilot course.

A Sustainable Regional Training Plan in Geothermal Energy will be prepared to examine future demand for training as well as academic and financial aspects. The plan will define curriculum and teaching methods needed to ensure that participants receive the best training available in the region. Studies will also be conducted to determine the demand for masters or doctoral-level training in geothermal energy.

The region’s geothermal development potential is estimated at 6,000 MW. Of this, 43 percent is located in Central America, 39 percent in Mexico, 17 percent in the Andean region, and 1 percent in the Southern Cone. Two geothermal fields in El Salvador are currently being exploited, Ahuachapán and Berlíncon, with a combined installed capacity of 204 MW. This represents 14 percent of national installed capacity and 25 percent of net generation capacity, with production projected for an additional 25-30 years.
Of the program’s total cost of $2.9 million, approximately $1.4 million were provided by the Nordic Development Fund and $824,000 from the Fund for the Special Program on Sustainable Energy and Climate Change (SECCI-IDB). Counterpart financing for the program totals $770,000.”

Source: Power Engineering

Given stagnating power demand and the continued unclear regulatory framework in its home markets Italy and Spain, Enel Green Power aims at putting a corporate focus on emerging markets and to “raise its profile” in North America.

Enel Green Power is one of the largest geothermal power producers with large renewable energy operations across the world and geothermal energy operations in Italy, North America, Central and South America and Europe.

With its focus on emerging markets in Latin America, it will be interesting to see how fast the company pushes its projects in Chile among other Latin American countries.

As reported by Reuters the company plans to spend about EUR 6 billion ($7.9 billion) worldwide until 2016 to increase its overall power generation capacity by 4,300 MW from 7,100 MW (end of 2011) to 11,400 MW.

Source: Reuters

“In a disclosure to the Philippine Stock Exchange, EDC said the agreement will set up project companies for each of the Longavi geothermal concession in Chile, and the Chocopata and Quellaapacheta geothermal authorizations in Peru.

The project companies will allow the joint venture to commence exploration activities at the said sites.

Under the signed SHA, EDC will hold 70 percent of the outstanding capital stock of each of the project companies, while HRL will take the remaining 30 percent.

In February, EDC said it acquired a 70-percent stake in four geothermal projects in Chile and Peru. “We are pleased with the speedy conclusion of the negotiations with HRL as we now look forward to starting exploration work in what we view as attractive geothermal concessions in both Chile and Peru. These projects will showcase EDC expertise and help elevate the company as a Philippine corporate champion on the world stage,” Federico Lopez, EDC Chairman and Chief Executive, earlier said.

EDC said HRL acquired 23 geothermal tenements across Chile, Peru and Australia. With an experienced and accomplished geothermal team, EDC said HRL has been among the first to identify and obtain some of the most attractive concession areas in Latin America.

As the world’s largest integrated geothermal power producer, EDC and HRL now seeks to accelerate the development of the projects and offer a clean, reliable and indigenous source of energy to the people of Chile and Peru.

EDC and HRL are looking at the possibility of expanding the scope of partnership by including the latter’s other sites.

With the recent confirmation by the Chilean Ministry of Energy of the award to EDC of the Newen, San Rafael and Batea geothermal exploration concession areas to be exclusively developed by EDC, the company boasts a portfolio of geothermal exploration projects in Chile.

EDC said a full team of geothermal scientists will be deployed to Chile this month to start development activities on the joint-venture projects and EDC granted projects.

With over 35 years of experience in developing geothermal power projects in the Philippines, EDC now looks to leverage its technical expertise and expand its operations globally.

EDC has also submitted 13 applications for geothermal concessions in Chile, and is also looking at opportunities to develop geothermal projects in Indonesia and Kenya.

EDC is the world’s largest integrated producer of geothermal power and the acknowledged global leader in wet steam technology. EDC is engaged in the exploration, development and optimization of geothermal fields, as well as the operation and maintenance of the geothermal power plants with an aggregate capacity of 1,130 megawatts.

“The acquisition of these concessions in Latin America are the first steps in realizing our vision to establish a global presence and further solidify our position as the pre-eminent international leader in geothermal power development,” Lopez said.”

Source: Philippines Business Mirror

Recent exploration results as part of a resource assessment have been disappointing, and the Australian partner in the project Hot Rock now regains a 100% stake in the project. Hot Rock is now re-evaluating its position and plans for the project. In 2011 the company had predicted a 79 MW development by 2015.

As part of a farm-in agreement between both companies under a $200 million JV agreement in 2011, the companies agreed on EDC  taking over a 70% stake in the projects by Hot Rock. Calerias was one of four projects. While the Logavi project has seen the start of exploration work, similar work is expected for the Quellaapacheta and Chocopata sites in Peru are not expected to commence until later in 2012.

Source: BN Americas via Power Engineering

“The Latin America and the Caribbean region is committed to reducing its greenhouse gas footprint,” said Hans Schulz, head of the IDB’s Structured and Corporate Finance Department, which is responsible for financing large-scale projects in the private sector.

“Several countries are beginning to develop their potential for wind, geothermal, bio energy production and solar energy, often through private sector leadership,” Schulz said. “The IDB provides access to tailored long-term financing, not readily available in local capital markets for these types of projects.”

Last year, the IDB approved $736 million in financing for private sector environmentally-friendly projects, compared with the $663 million invested by the bank between 2000 and 2010.

The increase reflects both an increase in demand from the 26 governments the bank counts as its borrowing members and a strategic shift that calls for 25 percent of the bank’s lending portfolio to support climate change and environmentally-friendly initiatives, such as renewable energy.

As part of the meeting, the IDB and the Japan International Cooperation Agency signed a framework agreement that will provide up to $600 million in financing for renewable energy and energy efficiency projects in Central America and the Caribbean over the next five years.

At the meeting the IDB also agreed to join forces with the Asian Development Bank on strengthen trade and investments.

For the full article see link below.

Source: Environment News Service

In Peru geothermal development is less attractive, as the country  has the luxury of abundant gas and hydro power resources. In Argentina on the otherhand the lack of accessible investment sources are the main barrier to development.

Chile though sees high prices and an ever increasing demand in the north of the country and therefore is leading with regards to development and a push for geothermal. The high electricity prices in Chile are the main driver of investor interest and have put Chile on the international map. The recent tender in Chile for 20 exploration concessions has seen a great interest with 70 offers in the tender.

The tender for these 20 concessions includes an investment commitment of around $250 million. Firms that have submitted bids in the tender include, Enel, Origin Energy (each with 10 bids), as well as Colbún, GeoGlobal Chile, Magma Energy (Alterra Power) and Ormat Andina (Ormat Technologies).

Source: BN Americas

13 companies were submitted to a process that received 70 bids for the different areas of the tender.

The geothermal energy concessions which began on September 2010, and no area was not awarded, have shown the great interest of companies to participate in this tender. The awards were notified to the companies in December 2011, the date on which the decrees entered in processing of legality in the General Comptroller of the Republic. Finally, on April 2012 was the last decree of execution.

Chile has an important natural potential for developing geothermal energy resources and considering only preliminary estimates, the minimum potential for electricity generation excess of 3.500 MW.

The companies selected are;

• Ormat Andina Energía Limitada
• Energy Development (EDC) Corporation Chile Limitada
• Origin Energy Chile S.A
• Transmark Chile SpA
• Compañía Minera Zaldívar Limitada
• Enel Latin America (Chile) Limitada
• Minera Escondida Limitada
• Energía Andina S.A.
• Origin Energy Chile S.A.

More details about the areas and regions in this link

Source Chilean Ministry of Energy

Written by A.Ormad

Enel Green Power is one of the largest geothermal developers and is planning to start building a 40 MW plant in the region of Antofagasta in Chile. There is an estimated geothermal power generation capacity potential of more than 3,300 MW.

The concessions won now are: Colorado (Antofagasta), San Jose I (east of Santiago) and Yeguas Muertas (southeast of Santiago).

Source: Reuters

Signed this week, the agreement will be a two-fold scheme. For joint co-financing, the IDB will be required to match financing provided by JICA. The Agency intends to provide US$300 million in concessional financing for projects, which would mean IDB would also have to offer US$300 million. The second option is parallel co-financing where each organization will separately finance specific components of an eligible project. All projects will be processed, approved and executed to meet with the IDB’s loan policies and procedures for joint co-financing.

The IDB has increased spending over the years due to an increase in demand from its borrowing members and to achieve its goal of 25% of total lending to represent climate change adaptation, environmental sustainability and renewable energy. According to the International Energy Agency, a 50% increase, by 2030, is expected in this region. This will require a global investment of up to US$1.5 trillion. Last year, the IDB had approved US$736 million in financing towards environmentally-friendly projects.

“For more than 30 years, Japan has been a great partner of the IDB and, in particular of our borrowing member countries,’’ said IDB President Luis Alberto Moreno. “This agreement is another example of Japan’s efforts to help our region overcome key development challenges. This contribution, in addition to encouraging the adoption of climate-friendly energy investments, will support much needed mitigation measures to address the negative impacts of climate change among our most vulnerable nations in Central America and the Caribbean.”

Toshitaka Takeuchi, energy specialist and technical contact for the agreement at the IDB’s energy division said, “We are considering potential projects in the areas of hydroelectric power plant rehabilitation, photovoltaic power generation, and installation of energy saving facilities and equipment. In addition we will explore financing opportunities for geothermal power generation considering its significant potential in the region.”

“The Latin America and the Caribbean region is committed to reducing its greenhouse gas footprint,’’ said Hans Schulz, head of the IDB’s structured and corporate finance department, which is responsible for financing large scale projects in the private sector. “Several countries are beginning to develop their potential for wind, geothermal, bio energy production and solar energy, often through private sector leadership. The IDB provides access to tailored long-term financing, not readily available in local capital markets for these types of projects.”

Source: PV-Tech

Fernando Allende, President of the Chilean Geothermal Energy Association (Achegeo) conducted an interview on CNN Chile where he talked about the geothermal field highlights and the implications of the 20/20 adoption law.

The association’s president said that the implementation of a geothermal project, from the exploration phase to the running, provides an execution time of between five and seven years.

A report by the “technical-parliamentary citizen Commission” has estimated that by 2020, geothermal energy could contribute with 1,000 MW of installed capacity and considering capacity factors around 80%, would mean that only geothermal energy could provide more than 10% of the country energy needs.

In November 2011, Achegeo Association conducted the first geothermal congress attended by different energy companies from 18 countries. Synergies between Chilean and international companies will be crucial in order to achieve the 20/20 law.

Allende said that “it is in the exploration phase where more risks are assumed” and it will be very important to change the law 19.657 (adopted in 2000) that regulates concessions for the development of geothermal energy.

54 exploration concessions have been granted and by 2015, two plants in an advanced stage are expected to be ready.

Written by A. Ormad

Cuatro empresas compiten por convertirse en el primer proyecto geotérmico que se desarrollará en Chile.

Enel Green Power Chile, GeoGlobal Energy Chile, Energía Andina y Magma Energy son las cuatro firmas que esperan poder desarrollar la primera planta geotérmica en Chile en torno al 2015. Es importante señalar que a finales del 2011 había en trámite más de 70 permisos de exploración y explotación en el Ministerio de Energía.

Uno de los proyectos mejor posicionados lo está llevando a cabo Enel Green Power Chile. A la espera de la resolución de calificación ambiental (RCA) el proyecto se encuentra en fase de exploración por lo que se ha estimado la construcción de una planta de 50 MW, implicando una inversión de US$ 180 millones.

Otra de las empresas, la neozelandesa GeoGlobal Energy Chile y según su gerente Rüdiger Trenkle, está trabajando en una planta de 70 MW llamada Curacautín “El costo total de la inversión en la central ascendería a los US$ 350 millones”.

Energía Andina (contralada por Antofagasta Minerals, del grupo Luski) no tiene pretensiones de ser el primer proyecto pero si aspira a convertirse en el principal grupo del país en potencia generada. Están desarrollando ocho proyectos en cinco regiones de Chile y su gerente, José Manuel Soffia, dice “Nuestro proyecto Tinguiririca (VI región) es el más avanzado, aunque esperamos que a finales de 2012 los otros estén a la par en las perforaciones. De esta forma,
evaluaremos cuál de todos puede transformarse en nuestra primera planta geotérmica”.

Magma Energy, de origen canadiense, cuenta con una cartera de proyectos de exploración geotérmica en Chile, Argentina, Nicaragua, Perú y Estados Unidos. Sus proyectos, Mariposas y Pellado (Laguna del Maule) es probable que lleguen a convertirse en centrales geotérmicas antes del 2015 “Están ubicados a 120 Km al interior de Talca y su potencial inferido es de 300 MWe. Esperamos empezar a construir en 2015 y en 2016 comenzar a aportar energía al SIC (Sistema Interconectado Central)”.

Fuente: Got Powered

Fuente: Diario Financiero Chile

Enel Green Power, GeoGlobal Energy, Energy Andean and Magma Energy are the four companies to compete for the first geothermal power plant in Chile.

The project Cerro Pampa Hall-Barrow, the North Geothermal Company, a subsidiary of Enel Green Power, is considered by many to be the safer candidate to become the first plant using this technology in the country. Meets his exploration stage completed, indicating the feasibility of constructing a kind of 50 MW, would entail an investment of U.S. $ 180 million. He is currently awaiting the resolution of environmental qualification (RCA).

But it is not the only one that moves in this race. The New Zealand Energy GeoGlobal Chile works for your project Curacautín become the first plant. According to general manager Rüdiger Trenkle, the geothermal plant would have a capacity of 70 MW, which will be supplied to the Central Interconnected System (SIC). “The total cost of investment in the plant would amount about $350 million,” he says.

Meanwhile, Andean Energy-controlled by Antofagasta Minerals, Luskic-group and partly owner NZ based Origin Energy, but has no pretensions of being the first, it does aspire to become the largest geothermal power generating country. To achieve this has eight projects with varying degrees of progress in five regions of Chile. “Our project Tinguiririca (Region VI), is the most advanced, but we hope that by the end of 2012 the others are at par at the perforations. In this way, we will evaluate which of all can be transformed into our first geothermal power plant, “says Jose Manuel Soffia, general manager bof the firm. The expected decision taken before 2015.

Finally Alterra Power (Magma Energy), a Canadian company, has a portfolio of geothermal exploration projects in Chile, Argentina, Nicaragua, Peru and the United States. Butterflies and Pellado their projects in Laguna del Maule, are possibly escalating into geothermal by 2015. “They are located within 120 KM of Talca and inferred potential is 300 MWe. We hope to start building in 2015 and in 2016 started the release of energy to the Central Interconnected System (SIC) “he says.

Source: Got Powered

The Curacautin project is estimated to have an installed capacity of 70 MW with a cost of up to $330 million.

The company plans the development of 10 geothermal drill pads, and drilling 14 production and 11 re-injection wells. It is expected the company will start to drill in the middle of 2013 and start operation in early 2016.

Source: Power Engineering via BN Americas

The company also looks at geothermal energy and has initiated studies that identified a number of prospects. Among those prospects for geothermal energy production are Alcedo (150 MW), Chacana (318 MW), Chachimbiro (113 MW), Chalpatán (51 MW), Chalupas (283 MW) and Tufino (138 MW).

Celec currently focuses its efforts in development on Chacana in the provinces of Napo and Pichincha, and Chachimbiro and Tufino in Imbabura province.

Chacana and Chachimbiro could be the first geothermal power plants in Ecuador going online as early as January 2017, and Tufino in January 2018.

Source: BN Americas

Highlights of the deal:

• CIFI to provide US$22.5 million debt financing for drilling loan directly and through syndication;
• Proceeds to be used for drilling 3 of the 4 wells planned for Phase 1;
• Drilling Loan to close contemporaneously with the Senior Debt,
• AGS has agreed to provide up to $17.5m AUD in Capital Contingency Funding, if required.
• Total debt for Phase 1 US$86.5 million; Earth Heat on the threshold of full funding for the Copahue Development.

The Drilling Loan and Capital Contingency Finance, in conjunction with the previously announced (ASX 24th November 2011) $134 million Project Finance Loan from Inter-American Development Bank (“IDB”) forms the debt aspects of project financing requirements for the Company’s Geothermal development at Copahue in Argentina.

Earth Heat Managing Director, Torey Marshall commented,“Securing additional funding for the advancement of the Copahue project is the achievement of an enormous milestone. We now have agreements in place with AGS, CIFI and IDB, subject to due diligence, which will more than cover the debt requirements to proceed with Phase 1 at Copahue. Our rapid progress has shown that EHR has a formidable business model and a high quality project in Copahue. We will continue to lead the ASX listed sector and over the next 6 months will provide clarity to shareholders on corporate activity, joint ventures and additional funding options to achieve the best outcome for all the Company’s shareholders and stakeholders.”

Details about the terms of the CIFI Drilling loan available via link below.

Source: Company release February 22, 2012 (pdf)

Today I am asking you for your help in a short Reader Survey. It would be great if you could assist in filling out the survey.  Click here to take survey

I sincerely hope that you find the site and its features useful. From the beginning I have been using a variety of social media tools to help promote geothermal energy. Twitter has become an increasingly important tool. Facebook is something a bit underutilized. Google+ is coming. The ThinkGeoEnergy LinkedIn group with now also around 600 members is providing a great platform for discussions. The Ning community has not been that overly successful, but is still being used.

The free-to-use pictures I share via ThinkGeoEnergy’s Flickr account are also popular. If you want to share good geothermal pictures you can do this via the Flickr Group of ThinkGeoEnergy.

Then there are the other elements. In 2010, a weekly newsletter was added that today has over 600 subscribers and now even has a fine co-sponsor in Scientific Drilling. The Geothermal Job Portal was added last year and slowly gains some traction.

Also at the end of 2011, ThinkGeoEnergy was able to offer one of the first Geothermal apps for the iPhone – the GeoEnergy app, available in the App Store.

I am also very excited about the ThinkGeoEnergy Geothermal Power Plant Map, which is in full work. It is under development, so don´t expect it to be anywhere close to ready and correct, but for a preview see here: http://map.thinkgeoenergy.com/map.php, for the old map (on Google Maps) you can use this link.

I am now going through a bit of a strategic review of the site, for which the survey is supposed to be a little guidance of what you want to see for ThinkGeoEnergy going forward, so your help is appreciated.

There are some exciting news coming along for the industry, so the start into this year looks a lot better than indications of the end of last year. So lets hope we will see an exciting year.

I am also exploring the idea of a Marketing Workshop/ event in connection with the GRC Annual Meeting and the GEA Trade Show in Reno this fall, so stay tuned.

In this context I also would very much like to thank all the companies that have supported me through the years with advertisements and other contributions. Namely this is Islandsbanki, ISOR, GeothermEx, Hannon Armstrong, Verkís, Mannvit, Technip, Scientific Drilling, Iceland Drilling, Enerchange and Activated Logic.

There are a large number of other individuals and companies that have helped tremendously through advise, thoughts, critical remarks and comments and general support.

The company previously announced to the market it has been in ongoing discussions with a number of investment organisations to advance the funding options for Copahue.

Importantly, significant progress has been made towards securing bridging Mezzanine finance or Junior debt.

Junior debt participants have been engaged extensively during late 2011 and early 2012, principally from South America, the Middle East and parts of North America.

Earth Heat Resources is negotiating a minimum US$20-30 million finance option which would lower the equity gap for the Phase 1 Copahue development to A$10-15 million.

That level of funding would also provide the proceeds to undertake the company’s drilling plan at Copahue.

The equity gap will be further reduced or eliminated through a combination of additional financial products, a listing on the Toronto Stock Exchange (Ventures) and other corporate initiatives.

The Copahue project area is located in the western part of Neuquén Province, around 300 kilometres from the provincial capital and just a few kilometres from the Chilean border.

The geothermal resource on which the project is based occurs on the North-East flank of the Copahue volcano – a young, historically active stratovolcano whose summit is on the international border.

Four deep wells, reaching depths of 1,414 metres have also been drilled in the area, which has demonstrated the presence of a commercially exploitable, vapor-dominated geothermal reservoir within at least a part of the project area.

During 2011 Earth Heat has increased the resources by 150%, completed an EIA, a Pre-Feasibility Study and most recently signed Letters of Intent for offtake of the power to be produced well in excess of stage 1 and 2 development.

Giving an indication of the quality of the project, it has already attracted US$134 million in project finance from the largest funding agency in Latin America – the Inter-American Development Bank.

The funds will be comprised of a direct investment of US$48 million by the Inter-American Development Bank.”

Source: Proactive Investors

“Energy Development and Australian partner Hot Rock Ltd. signed a joint venture agreement on Feb. 2 to develop the Calerias and Longavi geothermal fields in Chile, and the Quellaapacheta and Chocopata projects in Peru. Energy Development obtained a 70-percent interest in each of the projects.

“We are pleased with the speedy conclusion of the negotiations with HRL as we now look forward to starting exploration work in what we view as attractive geothermal concessions in both Chile and Peru,” Energy Development chairman and chief executive Federico Lopez said.

HRL acquired 23 geothermal tenements across Chile, Peru and Australia. The company has been among the first to identify and obtain some of the most attractive concession areas in Latin America.

As the world’s largest integrated geothermal power producer, Energy Development can accelerate the development of the projects and offer a clean and indigenous source of energy to Chile and Peru.

The partners are looking at the possibility of expanding the scope of partnership by including HRL’s other sites.

A full team of geothermal scientists will be deployed to Chile this month to start development activities on the projects.

Energy Development has also submitted 13 applications for geothermal concessions in Chile, and is looking at opportunities to develop steam fields in Indonesia and Kenya.

“The acquisition of these concessions in Latin America are the first steps in realizing our vision to establish a global presence and further solidify our position as the pre-eminent international leader in geothermal power development,” Lopez said.”

Source: Manila Standard

According to EDC president and COO Richard B. Tantoco, the company is now set to begin in 2012 all the necessary geological and geophysical surveys that will help identify specific areas where it can best drill the wells.

These surveys would include fault mapping, fluid chemistry, rock analysis and metallurgic surveys, among others, he said in a briefing on Wednesday.

“It’s all pre-work activities that will tell you where you should drill, so you can maximize your chances of getting good wells. We have about a year before we start actual drilling of wells,” Tantoco said.

“The drilling of each well could take about 70 to 80 days. This will be followed by the testing of wells for about 90 days. The drillings and testings could take a year, maybe a little more, depending on rig availability within Latin America. It is only after that can you set up the power plant. Our general rule of thumb is from the time we get the concession contract to the time we generate the actual kilowatt-hours, it could take as long as six to seven years,” Tantoco explained.

EDC has since prepared for this venture as it has already set up office in Chile through EDC Chile Ltd., a limited liability company, which has the purpose of exploring, evaluating and extracting mineral or substance to generate geothermal energy. The company has earlier submitted applications for 13 concession areas in Chile and submitted bids for five other blocks, also in the same country.

Meanwhile, Tantoco also disclosed that EDC would finally sign within January a joint-venture agreement with Australian firm Hot Rock Ltd. for the development of two concession areas in Chile and another two in Peru.

This agreement will seal EDC’s acquisition of a 70 percent interest in each of the concession areas. “We’re just finalizing discussions,” Tantoco said.
In November 2011, the EDC signed a heads-of-terms agreement with Hot Rock for the acquisition of rights over the geothermal areas in Calerias and Longavi in Chile and the Quellaapatcheta and Chocopata regions in Peru.

EDC is currently also the world’s largest integrated producer of geothermal power and the acknowledged global leader in wet steam technology. It is currently engaged in the exploration, development and optimization of geothermal fields, as well as the operation and maintenance of geothermal power plants with an aggregate capacity of 1,130 megawatts.”

Source: Business Inquirer

The findings are interesting not only for the geothermal industry that sees its high capacity factors as one of the key selling arguments. While the research shows that geothermal energy is still a very favorable base-load capacity energy source for utilities world-wide, capacity factors are often not as high as they theoretically could be.

Building on the vast resources collected over the year, the research done by Bloomberg New Energy Finance for this study is quite thorough and looked at 71 geothermal fields globally.

For a global average, BNEF quotes a capacity factor of 73% and correctly notes that developers use much higher capacity factors for their project finance models. Higher resource temperatures statistically increase capacity factors at a rate of around 1% per 10 degrees Celsius. The performance of the different fields varies widely, with Iceland, Mexico and Indonesia representing the highest capacity factors. The age of the plants in Japan and the Philippines is mentioned as a reason for the lower capacity factors in both countries, through decreasing productivity of geothermal fields over time.

In detail the report goes into general trends of plant performance, performance by technology, country and developers.

In an interview with Mark Taylor the Head of Geothermal at Bloomberg New Energy Finance, he said, that “the findings might not be ideal for the industry, but geothermal energy is still base-load given its 90% availability. Also utilities in the U.S. still favor Geothermal and consider it a viable base-load option. This means that developers can still secure healthy power purchase agreements (PPA) and capital should be available for good projects.”

For financial institutions, capacity factors are important and information like that provided by Bloomberg New Energy Finance is crucial for the questions investors need to ask and developers need to be prepared to answer. “Lower than expected capacity factors could though mean difficulties with regards to not meeting PPA contract requirements, as well as meeting debt and interest payments through a decrease in revenues,” Mark Taylor added.

Geothermal development always has a risk element when it comes to resource assessment, drilling and planning, but the report by Bloomberg shows that it is crucial to be conservative in estimates as they determine the underlying contractual terms of the PPA, but also the availability of financing.

Again – and I mentioned this in various presentations these past 12 months – it is the question about the necessity about being conservative and successful, rather than overpromise and not live up to estimates given. The geothermal reporting codes by Australia and Canada are providing a codified approach to reporting of resource assessments that could help create investor confidence in projects, but also be one helpful element in securing PPAs that live up to expectations on both sides.

ThinkGeoEnergy would like to thank its advertisement partners that have helped to keep the site running. So my sincere thanks to Íslandsbanki, Iceland GeoSurvey (ISOR), GeothermEx, Hannon Armstrong, Verkís, Mannvit, Technip, Iceland Drilling and the many other firms who have helped in one or another way.

This year was quite an active one for ThinkGeoEnergy. Finally late this summer, the Geothermal Job Portal was launched with now several jobs posted. Clearly it will need to grow and it will.

Earlier this month GeoEnergy, the iPhone news app for ThinkGeoEnergy was published on the App Store and allows a condense news overview for those of you using an iPhone. It will be tried to offer an Android app as well, but this might take a while.

In October, ThinkGeoEnergy – together with ISOR – published the Geothermal Power Map, a printed world map with the locations of the geothermal fields of this world. The online version is still a work-in-progress, but will be worked to a useable format in 2012.

To many of you, I would like to extend my gratitude for your ongoing dedication to geothermal energy and development in general. Many of you became good friends and I cherish our friendship and ongoing cooperation. Keep up the fight for development in Asia, the Pacific region, Australia, U.S., Canada, Chile, Argentina, Turkey and so on.

I wish you all a peaceful and regenerating holiday season. I am looking forward seeing many of you at the several geothermal events in 2012.

With all the best wishes for 2012,

Alex(ander) Richter

The water chemistry data provides important clues as to the origin of geothermal fluids, mixing with the surrounding ground waters and the overall temperature of the geothermal reservoir. The water samples were collected from the Departments of Arequipa and Cusco in Southeastern Peru.

The geochemical study is based on discharge water collected from the active hot-springs on the concessions. The results indicate pH values from 6.76-7.04 and reservoir temperature ranges from 100.4 – 125.1 (Quartz geothermometer) or 108.3 – 130.0 (Sodium/Potassium (Na/K) geothermometer) degrees C. The waters are chlorine enriched (Cl), and plot towards the “mature category waters” on a Giggenbach ternary diagram, suggesting fluid formation by the interaction of geothermal fluids with the host rock and dilution with low-salinity water.

The Lithium-Bismuth-Chlorine (Li-Bi-Cl) Giggenbach ternary diagram also indicates that the analyzed waters represent “older” hydrothermal systems with the fluids possibly migrating from the old basement rock. The enthalpy/chloride plots also suggest the addition of colder, dilute waters to the geothermal fluids within the system and en-route to migration towards the surface. The measured surface temperature of the springs ranges from 41-52 degrees C.

From the standpoint of exploration, the results suggest that the geothermal waters come from a relatively evolved and localized geothermal system suitable for targeted exploration. The relatively significant difference between the measured surface temperature and the estimated reservoir temperature suggests a significant dilution by the ground-water, which is important factor in designing the planned temperature gradient measurements.

Furthermore, it is possible to increase the flow from the original sources and obtain hotter water by drilling deeper into the reservoir with the aid of geophysical and geochemical data being collected for the concessions.

The water samples were analyzed by THERMOCHEM Inc. of Santa Rosa, CA for ion concentrations, geothermometry calculations and overall geochemical signature of the geothermal waters. Chemical analyses of geothermal fluids can be used to estimate subsurface reservoir temperature where the chemical geothermometers are dependent on the water-mineral equilibrium and give the last equilibration temperature for the reservoir. Several techniques have been developed to estimate reservoir temperatures in geothermal systems on the basis that the temperature dependent water-ion equilibrium is attained within the reservoir.”

Source: Company release via Marketwatch

According to Makoto Nakao, representative of Japan’s International Cooperation Agency (JICA) the scope of work for the Master Plan for Development of Geothermal Energy in Peru agreed between the Peruvian government, represented by the MEM, and JICA as signed in late 2009 has been ratified. It is also “considered favorable in the context of the priorities identified for the development of Peru.

He said that such ratification was given by a decree of the Ministry of Foreign Affairs (MRE). The ratification underscores the importance and benefits, within renewable energy, that geothermal energy has to be the only one that offers high utilization factors by providing stable power supply for 365 days a year.

The Ministry of Energy and Mines (MEM) authorized the exploration of geothermal resources in the regions of Arequipa and Cuzco, to the company Hot Rock Peru SA. In this way, they will explore geothermal resources in the areas known as Turu, located between the districts of Caylloma, Suyckutambo and Sibayo in the provinces of Caylloma (Arequipa) and Espinar (Cusco).” The company recently sold a majority stake to Philippine company EDC.

Source: EVWind

The new Condoroma South concession is contiguous with the Company’s existing flagship Condoroma Project and forms an 1800 hectare unit in an exciting development area.

The Condoroma exploration area is located near the settlement of Chaquelles 29 kilometers southeast of the Swiss based Xstrata plc’s Antapaccay copper project. In 2010 Xstrata plc Board approved an investment of US$1.47 billion to develop the Antapaccay copper project as a major long-life, low cost brownfield expansion to the Tintaya copper mine.

The Condoroma concessions are centered on a string of active thermal springs three kilometers in length with the measured surface temperature of 58 degrees C and significant observed water discharge. Based on the geology of the area, proximity of recent volcanic vents and geophysical/geospatial data used to evaluate the background of the potential properties.

The Company is excited about the Condoroma Project because of the geothermal potential of the area and its location relative to major commercial mining development. Rural and commercial electrical consumers including the mining industry are in need of additional electrical power sources and it is Mustang Geothermal’s goal to provide a source of clean, renewable energy to these consumers.

The Atecata and Coline properties are located near the small village of Pinaya in a mineral-metals district that has great potential for commercial mining development. Multiple thermal springs occur on each of the properties with temperatures recorded to 52 degrees C.

The Company is excited about these results and the progress of its exploration program in Peru.

Peru produces 45,500 Giga watt hours (GWh) of electrical power (2010 est.) with 74.8 % and 24.5% coming from hydro and fossil fuel, respectively. Currently no geothermal power plants are in operation in Peru.

GeoEnergy – the ThinkGeoEnergy Geothermal News App

Long time in the making it now available on the App Store. “GeoEnergy” is a news application of ThinkGeoEnergy.com. It provides the complete news overview, access to the Twitter feed of ThinkGeoEnergy, the latest contributions posted on Flickr and YouTube, as well as regional feeds of geothermal news around the global.

As far as I am aware it is the first real Geothermal Energy focused App for the iPhone.

The app is available for free on the App Store. It has cost me though considerable nerves, effort and time to put it up, so if you feel rather generous any donations are welcome. To donate Click here

I might also spend some time creating an app for Android, but this might take a while.

EDC said it signed a deal with Australian firm Hot Rocks Ltd. to take over a 70% interest in areas in Peru and Chile without specifying the acquisition cost.

The areas are “in the volcanic regions of Calerias and Longavi in Chile and the Quellaaparcheta and Chocopata regions in Peru.”

“We are excited with the prospect of developing with Hot Rock what we consider as some of the best geothermal concessions in both Chile and Peru. The ability to grow our business with full control over our steam fuel supply is the strategic rationale for the Lopez group’s acquisition of the controlling stake in EDC,” EDC President and Chief Operating Officer Richard B. Tantoco said in a separate statement.

Mr. Tantoco said the firm’s 35-year experience in geothermal field operation has enabled it to vie for markets overseas.

The company earlier said it wants to pursue international projects as a means to expand its geothermal footprint.

The transaction between EDC and Hot Rocks “remains subject to the further satisfaction on certain conditions, which include fully termed documentation, confirmatory due diligence and necessary regulatory and governmental approvals.”

The agreement entails the establishment of joint-venture companies for each of the sites.

EDC said Hot Rocks had already completed most of the exploration activities in the four areas and hopes to finish all surface exploration within the next six months.

The development comes as EDC pursues plans to expland abroad, having already submitted applications for 13 sites and also bidding on five sites in Chile.

It is also looking at geothermal projects in Indonesia, Kenya and Peru, according to earlier reports.

In the meantime, EDC had posted a loss of P487.7 million in the nine-month period ending September from an income of P7.6 billion in the same period last year.

The company had to close the Bacon-Manito (BacMan) steamfields in preparation of the recommissioning of the BacMan power plants in the third quarter.

Revenues for the nine-month period ending September fell 5.7% to P18.2 billion from year-ago levels of P19.3 billion.”

Source: Business World Online

The capital injection is a major vote of confidence in Earth Heat’s operations and management, with the funds to be comprised of a direct investment of US$48 million by the Inter-American Development Bank.

The bank will then arrange with assistance from Earth Heat, the syndication of US$86 million, taking advantage of the significant market and investor interest for the Copahue project.

Another big plus for Earth Heat is the significant savings to the project as a result of having this relationship with Inter-American, which is well known in the area due to being one of the largest financier of projects in the region.

A mandate has now been successfully executed by Earth Heat and the bank for the raising of the funds.

Torey Marshall, managing director of Earth Heat, commented on the good news, and said, “With this mandate in place, it prominently places Earth Heat at the forefront of the Australian geothermal developers and is an enormous vote of confidence in the execution of our business strategy.

“At the moment, we believe that Copahue is the only geothermal project that has this maturity in project financing discussions in South America. Inter-American Development Bank has undertaken significant due diligence to date and found that Copahue is extremely promising.”

The next financial step for Earth Heat is to close the senior debt facility, rounding out the project finance with an additional hybrid facility, and executing the physical development of the project.

Marshall added, “Earth Heat will continue to take the necessary steps to ensure its projects meet criteria set by various project lenders who generally account for 50%-75%, of total development capex. The main issue for small cap companies is their ability to fund their projects without significant shareholder wealth dilution.

“Pleasingly, Earth Heat is now well on the path to establishing independent funding sources which significantly reduce the need for equity raisings through the project development cycle.”

The agreement will enable the final parts of the funding and feasibility processes to be undertaken with clear parameters. Closing the initial phase of the financing in line with previously announced plans by Earth Heat, will be subject to the completion of a Bankable Feasibility Study and the meeting of all the requirements and covenants of the senior lenders.

The project would be consistent with the Inter-American Development Bank’s integrated strategy for climate change adaption and mitigation, and sustainable and renewable energy, which aims at increasing the bank’s sustainable energy portfolio of 25% by the end of 2015.”

Source: Proactive Investors

The Joint Venture, based in Santiago, will initially focus on the exploration of 5 licenses with a total area of approximately 3,270 km². The licenses are located in high-potential areas in the North and South of Chile. Operations have already commenced and the first exploratory drilling campaign is aimed for by the end of 2012 or the 1st half of 2013.

Positioned on the “ring of fire”, Chile is one of the most attractive countries for the utilization of geothermal energy worldwide. Currently, Chile is still a net energy importer and the demand is expected to increase over the coming years. The Chilean government has earmarked geothermal energy as one of the key components in order to support this growing domestic energy need. Both Transmark Chile SpA and ECM Geothermal SpA have a dedicated strategy to become leading players in the Chilean geothermal market.

Transmark Renewables (www.transmark-renewables.com), based in Amsterdam, the Netherlands, is the geothermal development company within the Transmark Group. Together with its sister company Transmark EDS (www.transmark-eds.com), a directional drilling service company, Transmark Renewables has the capability to develop a complete geothermal project in-house.

ECM S.A. (www.ecm.cl), based in Santiago, Chile, is the head of an industrial and service provider conglomerate, which also is a public infrastructure concessioner, active in the Geothermal Energy, Mining, Transportation, Parking, Construction, Healthcare and IT sectors.”

Source: Press release via Transmark Renewables

San Alberto covers an area of 990 km2 and lies in Chile’s northern Antofagasta region, close to the international borders of Argentina and Bolivia. The area is volcanically active, with the surrounding environment characterized as highland tundra / desert (Altiplano). Within the concession area, elevation changes between 4200m and 5100 m and various thermal surface manifestations have been identified, amongst others Ojos de Tara at 20 °C and Aguas Calientes at 50 °C. Initial exploration is expected to start in the beginning of 2012.

Chile is considered as one of the most attractive countries for the utilization of geothermal energy worldwide. The geological setting of Chile provides strong potential and at the same time the economic growth of the country requires new installed, stable, generation capacity.

In order to focus on the actual realization of projects, Transmark Renewables have identified Chile, next to the successful operation in Turkey, as one of their key selected markets. Transmark Renewables wants to significantly contribute to the acceleration of the still relatively immature geothermal development and with its fully dedicated in-house team it has already become a significant player in the global geothermal market.”

Source: Transmark Renewables

San Jacinto Project

Well SJ 12-3 at the San Jacinto Project was completed on August 23, 2011 to a depth of 7,841 ft. Well SJ 12-3 represents the Company’s objective of drilling to confirm an eastwards extension of the San Jacinto Reservoir. After completion of the drilling, the well was flowed for 3 days to allow for stabilization. Following stabilization, the Company conducted a 10 day flow test under the supervision of Sinclair Knight Merz (“SKM”), the Company’s resource consultant, which confirmed the well output of 30 tonnes per hour (t/h) of steam which equates to a power generation capacity of 3.9 MW (gross) at a design separation pressure of 5.1 barg. Following the flow test, the Company performed a pressure build-up test and determined that the well is connected to the main reservoir (constant pressure boundary) and is not isolated, therefore expanding the total volume of the confirmed San Jacinto resource. In addition, the well did exhibit some degree of impaired permeability possibly d ue to rock cuttings that may be removed through further stimulation which may result in improved well output.

Casita Project

As previously disclosed, the Company commenced in July of 2011 the drilling of the first of two slim holes designed to prove the commercial viability of the resource at the Casita concession. The first slim hole has been drilled to a depth of 842 meters with a total loss of circulation. A temperature survey conducted in the well has indicated temperature readings exceeding 230° Celsius (446° Fahrenheit). The temperature results obtained and the permeability found indicate that the location has a high probability of being a commercial resource. The company will commence in December the drilling of the second slim hole at a location approximately 1.7 km from the first slim hole.

Corporate Re-structure

In September, the Company completed a reorganization of its personnel in the corporate office in Reno, Nevada. This reorganization resulted in the reduction of both expenses and staffing levels which will parallel the organization with the near term focus of completing the development of Phase I and II of the San Jacinto project. The reorganization is expected to save approximately $4 million a year in corporate G&A expense and will result in increased corporate cash flow.

“I am pleased with the results of our drilling program at both the San Jacinto project and the Casita concession,” stated Shuman Moore, Chief Executive Officer of Ram Power. “We have also made great strides in reviewing the overall structure and composition of the Company, which will allow greater cash flow into the Company and will better suit the needs of our project base well into the future.”

Source: Company release via email

Chilean Energy Minister Rodrigo Alvarez Zenteno recently told the audience of an energy conference “that the Chilean government is inviting investment in renewable energy projects that Chile will develop as part of a five year, $950 million project aimed at modernizing Chile’s energy infrastructure.

According to Alvarez, Chile is seeking investments in renewable energy projects to install 9,000 megawatts of renewable energy source by 2020 and to increase its generation capacity 200 percent in the following decades, as Chile has the potential to generate 50,000 megawatts in solar energy and between 6,000 and 112,000 megawatts from geothermal energy in the near future.

Current front runner in Chile’s efforts to develop its geothermal potential is Ormat Technologies Inc.

Chile’s Committee on Geothermal Energy Analysis has recommended to Minister of Energy Rodrigo Alvarez that Ormat Industries Ltd. should be awarded five exploration geothermal concessions via its Chilean subsidiary, Ormat Andina SA., as part of a tender for 20 new areas of geothermal energy exploration in the Aroma, Quinohuen, Marimar, San Jose II and Sollipulli concessions.

Chile has closed the door on using nuclear energy to meet its needs. Earlier this week in Paris Alvarez told his audience, “If Chile wants to achieve development, it needs more energy. And that energy, as President Sebastian Pinera has stated, needs to be safer, cleaner, and more economical. We will not build, we will not plan and we will not define anything relative to nuclear energy policy in Chile during this government.”

Chile is seeking foreign investment to fund Santiago’s $972 million plan to install 9 gigawatts of new electrical generating capacity by 2020, with the plan heavily emphasizing an expansion of the country’s renewable energy capacity. Alvarez remarked, that Santiago’s energy projects offered an “extraordinary investment opportunity,” adding that “there is immense space for investment in renewables like wind and solar in Chile”.

Israel’s Ormat is certainly happy with its contracts. Ormat Andina SA CEO Dita Bronicki commented, “To be awarded with five-out-of-five exploration concessions reinforces Ormat’s position as a leader in the geothermal industry as well as demonstrating our experience as a vertically integrated technology provider with a strong commitment to the development of green-field geothermal projects throughout the world. While we know not all exploration sites result in commercial projects, we are happy to increase our potential development in Chile. These concessions add to Ormat’s diverse portfolio of interests and developments in Latin America and worldwide, which include activities as owner and operator of power plants in Nicaragua, Guatemala, Kenya and the U.S.”

Chile’s interest in renewable energy comes amidst energy shortfalls from traditional sources. Faced with extremely low water levels in the country’s reservoirs, which impacts the nation’s ability to generate for hydroelectric power, Chilean authorities are considering rationing energy to industrial clients along the Sistema Interconectado Central power grid.

Currently, nearly half of the Sistema Interconectado Central installed power grid’s capacity, which provides energy to over 90 percent of Chile’s population from the northern city of Taltal to the southern island of Chiloe, comes from hydroelectric power electricity generation.

Hydroelectric power accounts for about a third of Chile’s energy, while fossil fuels make up nearly two-thirds. Argentina was Chile’s sole supplier of natural gas but gradually ended deliveries in 2007-08 to meet soaring domestic demand.”

For a more detailed article on Ormat’s take on the 5 geothermal licenses the company is to receive see here.

Source: OilPrice

The map is currently only available in a limited number of copies, but might be available for sale in the near future.

It talks about the growing investment in renewable energy projects in the region with a particular take on geothermal energy.

One “country with great potential is Peru. There geothermal projects have contributed to the development of the country, according to press reports. The growth in the sector is linked to Peru being the leading exporter in South America with levels only comparable with those of Italy and New Zealand, according to a report on the geothermal prospects of the country 2010-2011.

However, some still think geothermal energy is in its infancy in the country since the costs of exploration amount to about $4 million which makes the operation expensive.
In Chile, there are already 21 new geothermal projects. This Latin America nation is filled with suitable volcanic areas for the generation of geothermal energy. The government is conscious of such wealth and has initiated a process of public auction through which it will grant to 21 new areas of operation in the regions of Tarapaca and the Rivers, according to a news report in La Nacion.

Sources at the Chilean Ministry of Energy calculate the project will generate $100 million in investments of exploration and development. The government hopes that by 2011 it will be able to auction other 50 geothermal concessions and another 120 in the period 2012-13.

New Zealand company Hot Rock is one of the most active firms in the search of the geothermal potential of Chile. The company calculates that the country can generate 5000 MW through geothermal means.

Another key nation in the geothermal energy development is Bolivia. A key region in the southwest of the country bordering Chile could have the potential to generate 6500 MW in geothermal power, a similar amount to Ecuador’s potential.

In Central America, geothermal energy has gradually gained prominence and it is now the second source of renewable energy in the region. It is expected that the region will produce 5000 MW in geothermal energy distributed among Guatemala, El Salvador, Nicaragua and Costa Rica. It is not yet clear what is Honduras and Panama’s potential.

Such is the importance of geothermal energy in Central American that Inversiones Energeticas, a firm with a stake in geothermal plant LaGeo in El Salvador, will appeal against an international court of law ruling in favour of Italian investors taking over the plant in an effort to extend the legal battle close to a year, according to El Faro newspaper.

Enel Green Power has said it was injecting capital in exchange for the acquisition of the 95 MW plant. But the Comisión Ejecutiva Hidroeléctrica del Río Lempa through Inversiones Energéticas appealed against the takeover to the Arbitration Court in France. However, the court subsequently ruled in favourable to Enel Green Power, and it is this decision that Inversiones Energéticas is now appealing against.

In Costa Rica, the country’s electricity institute, ICE, is in advanced talks to put together a geothermal pilot Project with a capacity of 12 MW with American company GTherm.

The company’s single-well engineered geothermal system does not require water depositories. Besides, the infrastructure is mostly buried, which it does not produce any hydraulic or visual contamination while generating clean and sustainable energy.”

Source: Power Engineering International

In an update to the market, Earth Heat has outlined the company’s progress at the Copahue Project in Argentina, with the completion of a number of highly significant project milestones recently.

Copahue has now been advanced to a much more mature stage than most peer projects, due to its existing database of information, proximity to infrastructure and power demand metrics.

Torey Marshall, managing director, added “The company has been extremely active in taking its investments to the next level in Argentina.

“We are satisfying the criteria of project financiers, receiving enormous interest for power off take, and receiving strong support from the Provincial Government in what is a fantastic administrative jurisdiction.

“At this stage, we are well positioned to be the first ASX listed geothermal company to complete a Bankable Feasibility Study and order long lead items for a commercial (not pilot) geothermal power project.”

Major milestones in Argentina, include:

• Completion of a resource review at Copahue, which resulted in a significant upgrade of around 150%, demonstrating not only the enormous potential of projects within Argentina, but the extremely high quality of the resource itself.
• Completion of a Stage 1 Environmental Impact Assessment (EIA) at Copahue suggests no major issues are likely to be encountered, and as is common worldwide, serves as a masthead for the future environmental compliance of proposed development activities.
• This study will be further augmented by a second stage to be completed during the Bankable Feasibility Study
• Negotiated a Letter of Intent and Heads of Agreement to enter into a binding Power Purchase Agreement (PPA), with a very well respected industrial group, Loma Negra, within Argentina.
• The establishment of a fully operational team in country, giving full capacity to undertake this exciting project within Argentina.
• Execution of several CSR policies, particularly in communication activities within communities close to the project’s site, providing local inhabitants, school teachers, media, provincial and municipal authorities and local key players with full educational access to the project’s planned development.

Most importantly for Earth Heat’s operations in Argentina, the company has received extremely strong support from all the branches of the Provincial Government in Neuquen, in addition to support from the Argentinean Federal Government and the Australian and Canadian Embassies.

As example of this support, despite delays Earth Heat and the Provincial Government have agreed to the framework of the concession contract and now look forward to formal execution in November of this year.”

Further details and source: Proactive Investors

First Gen president Francis Giles Puno said in a recent interview that both First Gen and EDC would be expected to deliver better results in 2012 after completing this year the impairment charge for its Northern Negros geothermal power plant.

“Next year should be better because we’ll have the full contribution of the Bacman [Bacon-Manito geothermal plant] and also in the case of First Gen, our ownership in EDC has gone up to more than 46 percent from 40 percent, so presumably the timing is good if they deliver better results,” said Puno, who also sits as a director at EDC.

Due mainly to a P5-billion “impairment charge” resulting from the decommissioning of the Northern Negros facility, both First Gen and EDC reported huge net losses in the first semester. The shutdown of the 49-megawatt Northern Negros plant was necessary to curb losses arising from its continued operations.

On the other hand, the rehabilitation of the Bacman plant is seen bringing additional capacity to the group by 2012. He added that Palinpinon-Tongonan, while currently operating, would have to be rehabilitated next year.

The group is likewise waiting for the feed-in-tariff regime to be approved as it also plans to grow further its renewable energy portfolio such as wind and hydro-electric power plants. “Once the feed in tariff is approved, then we can proceed. Then I think what we’ll see is that more plants will be established as needed,” Puno said.

While the immediate focus is on the Philippines, Puno said the group has mapped out a plan to embark on offshore projects in Indonesia and China within a five-year time horizon. He noted that these were the countries in the same Pacific “Ring of Fire” that could harness geothermal resources to produce energy.

In the case of Indonesia, most of the geothermal power-generation concessions have already been awarded or in the hands of the government. He said EDC was talking to the holders of those concessions as well as with the government, offering its assistance in the building of geothermal power plants.

“We realize the potential is very big; however, we have to be a bit selective in investments,” Puno said.

Being the second-largest geothermal power producer in the world—and the biggest operator of integrated facilities—EDC seeks to bring its expertise in the business to the overseas market. The Philippines first developed geothermal power plants in the 1970s to cover the energy shortfall at that time.

“In the case of Chile, they were able to import fuel from neighboring countries like Argentina but now that these countries need their own power, Chile is forced to develop its alternative sources,” Puno said.”

Source: Business Inquirer

“Around 70% of the investment currently goes toward exploration, drilling the holes and defining the characteristics of the resource. That is a lot of uncertainty for investors, who want to be sure they can recuperate the investment they have made. The state could therefore initially develop the project, and then sell it on later,” Levy told an energy conference organized by IDB in Santiago.

Other policies that could be implemented by authorities include the establishment of long-term power purchase agreements, and feed-in tariffs, according to Levy.

Geothermal energy has been identified as an important future power source for Chile, with official estimates suggesting projects totaling up to 15GW in capacity could be developed across the country.

Chile’s first geothermal plant is set to come online in 2014. Authorities are looking to promote the development of the industry in order to meet the country’s goal of having 20% of its energy supplied by renewable resources by 2020.”

Source: BN Americas

According to the firm’s estimates, projects up to 320MW in capacity could eventually be developed on the Maule asset.

Resource estimates are based upon a slim-hole exploration campaign conducted towards the end of last year, and Alterra has since unveiled plans for a US$50mn large-hole exploration campaign on Mariposa starting in November.

The company holds a 100% interest in the asset, though it has previously held talks with several interested parties over potential farm-outs.

Alterra has two more assets in Chile, Los Cristales to the south of Mariposa, and Tres Puntas in northern region II. Elsewhere in the region the firm holds the Crucero and Lorascota licenses in southern Peru, and two more interests in Argentina.”

Source: BN Americas

Mr Lewis said a target to restrict global warming to those two degrees is “probably unrealistic now, because of the politics; not because the technology isn’t there, not because with the right policies it’s just not possible – it’s just that there isn’t the political will”.

Without the United States signing up, there’s unlikely to be a global deal on emissions reduction negotiated at the next climate summit in Durban, South Africa. Without such a pact, there will be no successor to the Kyoto Protocol, which expires in 2012.

“Frankly the UN process has become, not totally irrelevant, but it’s not the forum where a meaningful global deal is going to be brokered that will get you on a two degrees centigrade trajectory,” Paris-based Mr Lewis said on a recent visit to Australia.

“That is not the political framework through which this (trajectory) is going to be delivered. I can’t tell you there is a ready-made alternative framework in place that will allow a global deal to be delivered because I don’t believe that either.”

So while putting a price on carbon emissions is a key incentive for renewable development, including geothermal, with no global deal it will be difficult. The article then also goes into the cutting emissions, and argues that countries – given the economic difficulties – will not deliver the emission reductions promised.

But progress will happen and come through “bottom-up” deals in “juristidcations “including Australia, California (which will have an emissions trading scheme from January 2013), South Korea, Japan (once it had recovered from this year’s natural disasters), China and Brazil take effect, Deutsche’s Mr Lewis said.”

Another point raised would be eventually rising oil, gas and coal prices. Something that at the moment looks like it won´t happen for some time. But with technological development in the renewable technologies, cost curves for the industry will go down and then maybe in some time, clean technologies “become viable on a stand-alone basiis, even without a carbon price.”

What does this mean for geothermal? Well, first of all geothermal is attractive as a base-load capacity renewable. Secondly it is – depending on geographical location – very cost competitive. So while there is a strong start up risk for geothermal development, it is already from a price perspective very attractive. It just needs to get over those first early hurdles. Carbon pricing clearly would help in getting the right partners to join. Good example is Australia, where utilities and power off-takers have taken stakes in geothermal development.

Source:: The Age (Australia)

Origin is one of the big three electricity retailers whose reactions to the federal government’s carbon pricing regime and clean energy package – whether to invest in new baseload gas plants to substitute for coal, or in renewable energy projects to meet the 20 per cent renewable energy target, or both – will be closely watched, not just by politicians, but also those in the clean energy industry, who are wondering whether the company will develop its own projects or sign purchase agreements with third parties.

In other technologies, Origin says it is continuing to investigate geothermal development options within Australia and internationally. It says it is still assessing the results of the fracture stimulation achieved at its Jolokia 1 well in the Cooper Basin, and the potential for use as an underground heat exchange. Habanero 4, another appraisal well, will be drilled this financial year. Origin announced in February that it would write $206 million off the value of its joint venture with Geodynamics because of delays in development.

It is also evaluating the results from the nearby “shallows” venture, which was targeting geothermal resources in shallower sedimentary aquifers. The partners found plenty of heat, but the “permeability”, which governs how easily that heat can be extracted, was not as good as expected.

However, Origin says the first well in its joint venture in Indonesia are likely to be drilled this year. Origin is partnering India’s Tata Power Co in a project in northern Sumatra which could have a capacity of 300MW, and favourable tariffs offered by the Indonesian government. It said development could begin late in 2012.

It is also pursuing projects in Chile, where it has a 40 per cent interest in Energia Andina, which it describes as the country’s leading geothermal exploration company with a portfolio of eight geothermal exploration projects.”

Source: Climate Specatator

The development of this portfolio is one of the main objectives, that the company has outlined for its activities in Chile for the next five years.

“Chile has a very interesting combination of geothermal power, solar energy and wind energy, a huge hydro potential, a growing demand for electricity and a reliable regulatory framework. There are not many places in the world that combine all these elements, so we see in this country a great opportunity to invest in interesting projects and class, ” said Francesco Starace, Director and CEO of Enel Green Power, a company active in Chile since 2001, that two months ago moved its headquarters to the Southern Cone to Chile to manage the entire region, except Brazil.

Among the initiatives promoted by the company is the exploration and evaluation of geothermal energy in northern Chile, which could have a potential capacity exceeding 100 MW. The project is in its stage of processing environment for your next start and could make way for the construction of the first plant of its kind in South America.

The investments by Enel Green Power have increased by over 300% between 2010 and 2011 worldwide. In this context, the coming years the company plans to invest around US$ 9 billion, of which US$2.1 billion will be invested only in Latin America.

“We were able to continue to invest in projects without suffering the impact of volatile markets. So in the coming years we will continue and if we see new business opportunities and development of good projects are ready to increase our resources, especially in Chile, Brazil and Mexico, “forward Starace.”

Source: EV Wind

The assessment was undertaken within the company and has been reviewed independently by Dr Subir Sanyal of GeothermEx, an international expert in geothermal resource and reserve estimation.

The resource follows the completion of geological, geochemical and geophysical studies at the project located 100 kilometres south-east of Santiago, and is sufficient to meet the needs of more than 250,000 Chilean households.

The Resource area remains open with strong indications for a significant extension and a drill program is planned for early 2012.

Dr Mark Elliott, Hot Rock’s executive chairman, said “this is a very significant milestone, positioning the Calerias project as our most advanced in the burgeoning, Chilean geothermal sector.

“Chile is one of the best regions in which to advance geothermal projects today. The country has some of the best volcanic geology suited for geothermal energy in the world, yet the sector is still in its infancy. Chile also has a very stable, pro-development government providing excellent incentives to new geothermal companies.”

Chile, the world’s largest copper producer, has the highest power costs in South America. Due to increasing energy demand and drought, the country has suffered power shortages for several years. As a result there is potential to establish geothermal power in the country.

Hot Rock has had an on-the-ground presence in Chile since 2009 and its early mover advantage has allowed the company to cherry pick several prime tenements, well before the recent pegging rush by the other major geothermal companies. Hot Rock now holds the largest geothermal land package in Chile.

“Calerias is very prospective, being located near a volcanic centre providing heat. The project is also strategically located close to existing transmission grid inter-connection points with direct access to the large urban electricity market in Santiago and private customers such as the nearby El Teniente mine, the largest underground copper mine in the world,” Elliott added.

With a maiden resource now defined, Hot Rock will now fast track activities at Calerias with a view to start drilling by early 2012, upgrading the reservoir to a Measured Geothermal Resource suitable to commence a Bankable Feasibility Study.

A maiden resource assessment is nearing completion at Hot Rock’s next most advanced project, Longavi (100%-owned). Longavi is located 300 kilometres south of Santiago, close to transmission grid and markets.”

Source: Company release via ProActive Investors

Importantly, the costs are within previous estimates and there are no environmental or technical impediments to the project proceeding.

The existence of four wells at the project has enormous benefits, including the ability to use the COP-4 well for production, potentially leading to early cash flows.

This means that the company may only need to drill one production and one injection well before generating cash flows. Earth Heat is the only ASX listed geothermal company with a potential Bankable Feasibility Study (BFS) in the pipeline, and therefore is a front runner in the sector to generate revenue.

During the quarter, SKM interpreted a significant resource upgrade at Copahue, with a 150% increase over historic resource estimates. This underpins the view that the resource at Copahue is of world class scale.

Earth Heat also signalled its intention to list on the Toronto Ventures Exchange to tap greater investor recognition for its international portfolio of assets.

The company is in a select group of developers worldwide as it continues to demonstrate progress at the Copahue project, where it is looking to develop geothermal 15 MW power plant.

Engineering firm SKM’s study supports Earth Heat’s current commercial and risk profiles for initial development of a small modular plant and involved conceptual design of the wellfield, steamfield, power plant and power export into the national electrical grid.

On July 7 an Environmental Impact Assessment (EIA) was completed separately as part of the process and was significant as it is instrumental in determining the presence of major issues and indicating mechanisms for minimising the impact of the proposed activities on the environment.

Torey Marshall, Earth Heat’s managing director, said “the receipt of the Concept Study is a significant milestone. The 15 MW modular design meets EHR’s current commercial and risk profiles for initial development, which importantly would exploit a known geothermal resource which has significant upward scalability.

“Thorough and rigorous environmental assessments are also being undertaken to ensure minimal environmental impact of future development plans.’’

The Concept Study has had a positive outcome and revealed significant social and environmental benefits with the best practice development possible based on the EIA.

Pre-existing drilling provides opportunities for minimising future production well risk, with only two production wells likely to provide requisite net 15 MWe power production with reserve for run-down.

The location in Neuquen Province provides for suitable sites for power plant construction within close proximity to the four existing wells.

An organic rankine cycle (binary) power plant with air cooled condensers provides an effective method for geothermal power conversion however final design will depend upon the outcome of further studies.

The 15 MWe net produced by the power plant can be readily exported to the national grid by way of existing 33kV line.

Should an integrity check of the existing COP 4 well prove positive it may be utilised as the second producing well.

The presence of 4 wells, some of which have previously been connected for the production of steam, significantly de-risks the project, by increasing the confidence of the resource.

The recommended option for the anticipated conditions is an air-cooled organic rankine cycle (binary) plant.

An ORC plant is expected to provide good conversion efficiency at a reasonable capital cost. Spent geothermal condensate would be re-injected, and non condensable gases (NCGs) vented to atmosphere.

First cost estimates are in line with global averages of $3 million to $6 million per MWe installed, but will be refined during subsequent studies.

Earth Heat is currently undergoing an internal review and consultation process with a view to determining the parameters of the next stage of the Copahue development.

The resource at Copahue provides significant scope for development at the project, with the potential energy generated for consumers in the Neuquen Province of Argentina.

The Copahue project is located 55 kilometres to the national electricity market interconnector, with a sealed bitumen road to the site from Neuquen City.

Other infrastructure includes power lines connected from the site to the nearby town of Caviahue, a plentiful water supply with oil field services and equipment in the Province.

Earth Heat has commenced the first phase in a Feasibility Study for the ‘fast track’ development of the plant at Copahue.

Earth Heat intends to use the Feasibility Study to secure financing needed to accelerate the plant to reach production and ultimately generate cash flow.”

Source: ProActive Investors

He refers to the gas prices being low, effectively making electricity cheaper and therefore creating a difficult environment for geothermal companies in the U.S. Another picture can be found in the developing world, where lots of countries still generate most of its electricity from oil. With prices for oil reaching higher levels again, clearly this is a concern for those countries and they are looking increasingly at energy resources in their own countries, among them geothermal.

This reminds me of another discussion I had several weeks back, when I discussed with some colleagues the current situation of geothermal development. We then agreed that things look a lot better in the developing world. While this might not be the case for all countries, but clearly some of the best geothermal resources can be found in countries like Kenya, Indonesia, Philippines etc.  We also discussed that investors actually seem to get to the point where they don´t mind a certain political risk, if the resources are that much better than in politically more stable economies, such as the U.S. Furthermore financing seems to be more easily obtainable through development banks, which are not in a position to help finance projects in the developed world.

The article also refers to the discussion about consolidation and while this sounds interesting and true to some degree. The other truth is that the consolidation of smaller players, e.g. within Ram Power, meant a stop to their projects. A lot of the projects in development by Sierra Geothermal and Western GeoPower at the time when they were swallowed are now sitting idle, as these companies neither have the man power to do all the projects on the table and secondly the financing is not as available as hoped for to drive all those projects at once. On the other hand there are lots of smaller service companies and technology providers that could be interesting targets or even drivers of consolidation in the industry.

Interesting though is the recent announcement by Philippines  based EDC, that said its development cycle in Asia means that within 4-5 years they will have managed to bring some of their projects online, and are therefore looking at countries/ projects that could keep their momentum.

All in all very interesting thoughts. While I also believe in consolidation being a great opportunity, the financial markets and investors doen´t seem to play along to that tune … at least just yet.

Source: Tom Konrad via Seeking Alpha

Richard Tantonco, EDC president, said out of the 13 concession areas the company has applied for, five are uncontested.

Tantonco said that the company expects the government of Chile to award the geothermal energy concessions within the year.

“The development cycle for foreign (ventures) takes about six years. If we get the concession areas now, by the time you see the cash coming out of it, it’s going to be six years,” he said.

“Fortunately, after five to six years, we have a lot of growth here locally. By 2016, that’s the time we see the internationals taking off,” he said.

Tantonco said earlier EDC was set to invest P20.6 billion (US$478 million) to expand its generation portfolio by 38 percent or 1,542 megawatt in five year.

EDC, the country’s biggest producer of geothermal power and the second biggest in the world, plans to spend about $1 billion for green field projects.

He said the company has scheduled the operation of the 250 MW Bacman geothermal plant, won by EDC in a bidding conducted by the Power Sector Assets and Liabilities Management Corp. last year, and the 86 MW Bugos wind project for 2012.

He also said that it is set to operate the 40 MW Tanawon and 20 MW Nasulo geothermal projects in 2013; the 50 MW Mindanao 3 geothermal project by 2014; the 40 MW Rangas geothermal project by 2015; and the 40 MW Kayabon geothermal project in 2015.

Tantonco said last week that EDC is expecting income to go down this year because of the shutdown of the 150 megawatt Northern Negros geothermal facility.

He said that the company will incur a one-time P5.1 billion (US$118 million) loss this year from the shutdown.”

Source: Malaya Business Insight

The EIA was completed by engineering firm Sinclair Knight Merz (SKM) on time and has been submitted to the regulatory authorities in Argentina, with a positive outcome expected by the company.

With the project on track, Earth Heat now expects receipt of the Concept Study stage 1 final report in the next 2-3 weeks.

The assessment is significant as it is instrumental in determining the presence of major issues and indicating mechanisms for minimising the impact of the proposed activities on the environment.

The EIA may be extended at a later date as part of any Bankable Feasibility Study undertaken by the company for the Copahue Project.

Torey Marshall, Earth Heat’s managing director, said “completion of the Stage 1 EIA is an important milestone for the company particularly as the Copahue Stage 1 Concept Study report nears completion by SKM.

“The company continues to demonstrate progress in the Copahue project which places EHR in a select group of developers worldwide.”

In May Copahue received a 150% jump in total resources interpreted from SKM, under the new Canadian Geothermal Code (CanGEA) classified resource estimate, in terms of electricity generating capacity and stored heat in place (based on P50 probability).

The resource provides significant scope for development at the project, with the potential energy generated for consumers in the Neuquen Province of Argentina.

The Copahue project is located 55 kilometres to the national electricity market interconnector, with a sealed bitumen road to the site from Neuquen City.

Other infrastructure includes power lines connected from the site to the nearby town of Caviahue, a plentiful water supply with oil field services and equipment in the Province.

Earth Heat has commenced the first phase in a Feasibility Study for the ‘fast track’ development of a 15 megawatt (MW) geothermal plant at the project.

Earth Heat intends to use the Feasibility Study to secure financing needed to accelerate the plant to reach production and ultimately generate cash flow.”

Source: ProActive Investors

The Company is excited about the Condoroma Project because of the geothermal potential of the area and its location relative to major commercial mining development. Rural and commercial electrical consumers including the mining industry are in need of additional electrical power sources and it is Mustang Geothermal’s goal to provide a source of clean, renewable energy to these consumers.

Peru produces 45,500 Giga watt hours (GWh) of electrical power (2010 est.) with 74.8 % and 24.5% coming from hydro and fossil fuel, respectively. Currently no geothermal power plants are in operation in Peru.

The Condoroma exploration concession consists of a 900 hectare parcel located in the Department of Cusco near the settlement of Chaquelles 29 kilometers southeast of the Swiss based Xstrata plc’s Antapaccay copper project. In 2010 Xstrata plc Board approved an investment of US$1.47 billion to develop the Antapaccay copper project as a major long-life, low cost brownfield expansion to the Tintaya copper mine.

The Condoroma concession is centered on a string of active thermal springs three kilometers in length with the measured surface temperature of 58 degrees C and significant observed water discharge. Based on the geology of the area, proximity of recent volcanic vents and geophysical/geospatial data used to evaluate the background of the potential properties.

Mustang believes that a significant geothermal potential exists in the area and is poised to embark on rapid exploration and development to meet the growing power needs in the region. The concession is close to the major power grid and with the estimated resource potential could significantly aid in producing abundant, clean and renewable energy to support both rural and commercial consumers.

Mustang Geothermal owns a 100% interest in 8,041 hectares of Federal geothermal leases in six project areas in the state of Nevada and holds 3,600 hectares of geothermal exploration concessions in four project areas (Banosdel Inca, Paclla, Ninobamba, & Condoroma) in Peru. Mustang also owns a 100% interest in the La Jara Mesa Extension uranium property consisting of 137 unpatented mining claims in the Grants Mining District, Cibola County, New Mexico.”

Source: Company release via PR Newswire

The map will be an ever ongoing project, and I am also planning a mashup that will show a more professional layer map with more sophisticated data and a form to correct/ add plant locations.

So far the map has seen about 40,000 visitors, which is fantastic but also shows that I need to continue driving it forward. So stay tuned. Also if you feel some plants are missing, please don´t hesitate sending me coordinates and details.

A great thanks to Sandro Bruni of Enel Green Power.

The Map is freely accessible via Google Maps

The report talks about that “geothermal energy today is mainly known for its reliable production of base-load power – the power needed to meet minimum demands – in areas where geological conditions permit fluids to transfer heat from the Earth to the surface in self-flowing wells at high temperatures. However, geothermal resources at moderate temperatures can be found in aquifers that are widespread. Such resources can be used in binary power plants, combined heat and power plants or in heat-only applications. Emerging geothermal technologies that extract energy from the hot rock resources found everywhere in the world hold much promise for expanding the production of geothermal power and heat.

This roadmap envisions that by 2050, geothermal electricity generation could reach 1,400 TWh per year, i.e. around 3.5% of global electricity production. Geothermal heat could contribute 5.8 EJ annually by 2050. For geothermal energy for heat and power to claim its share of the coming energy revolution, concerted action is required by scientists, industry, governments, financing institutions and the public. This roadmap is intended to help drive these necessary developments.”

The report has its flaws by looking primarily at EGS overlooking the great potential of conventional geothermal resources for both power generation and heating purposes. It also doesn’t stress out the unique position of geothermal with regards to the combined energy supply, as well as the great potential geothermal could play for individual countries and regions. The International Geothermal Business Coalition, a joint group by several international Geothermal Energy Associations believes that the quoted potential of geothermal providing 3.5% of total electricity supply in the world, is probably not ambitious enough.

The report is available here: IEA Geothermal Technology Roadmap (pdf)

In light of the new upgraded resource figures announced on May 18, the scope and objectives of the stage one concept study have now been outlined.

The company plans to split the study into two successive phases, with phase A being a concept screening to agree on a viable technical solution, and Phase B detailing the agreed upon concept and integrating other project factors.

Earth Heat intends to use the Feasibility Study to secure financing needed to accelerate the plant to reach production and ultimately generate cash flow.

Consideration of future expansions will be included in the study given the substantial resource estimate of up to 264MWe.

Torey Marshall, managing director, said “this week has been a turning point for the company insofar as it has shown Copahue to be a world class resource, and with the existing information, our shareholders can be comforted that the next drilling will be in support of a development, rather than in search of a (resource) number.

“The next two months will yield significant achievements and news that will continue to reshape Earth Heat in the eyes of investors as it marches towards first cash flow.”

The company has engaged leading engineering firm Sinclair Knight Merz (SKM), to advise and assist in the design and construction of the geothermal plant.

Earlier this week, Copahue received a 150% jump in total resources interpreted from SKM, under the new Canadian Geothermal Code (CanGEA) classified resource estimate, in terms of electricity generating capacity and stored heat in place (based on P50 probability).

The outcome provides for significant additional scope for development at the project, with the potential energy generated for consumers in the Neuquen Province of Argentina.

Of particular significance is the ‘behind pipe’ verification which provides a boost to the certainty of the stage 1 plant size and reduces the immediacy of resource extension drilling.

The Copahue project is located 55 kilometres to the national electricity market interconnector, with a sealed bitumen road to the site from Neuquen City.

Other infrastructure includes power lines connected from the site to the nearby town of Caviahue, a plentiful water supply with oil field services and equipment in the Province.”

Source: Company release via ProActive Investors

Copahue received a 150% jump in total resources interpreted from SKM, under the new Canadian Geothermal Code [for Public Reporting] (CanGEA) classified resource estimate, in terms of electricity generating capacity and stored heat in place (based on P50 probability).

The new Copahue resource under Canadian Geothermal Code is:

• Measured Resource; 19 generating capacity (MWe), 700 stored heat in place (PJ);
• Inferred Resource, Vapour Zone; 55 generating capacity (MWe), 2500 stored heat in place (PJ); and
• Inferred Resource; deep liquid zone 190 generating capacity (MWe), 7300 stored heat in place (PJ).

The outcome provides for significant additional scope for development at the project, with the potential energy generated for consumers in the Neuquen Province of Argentina.

Of particular significance is the ‘behind pipe’ verification which provides a boost to the certainty of the stage 1 plant size and reduces the immediacy of resource extension drilling.

Earth Heat said that the scope and objectives of the Stage 1 concept study will be released this week, in light of the new resource figures.

The Copahue project is strategically placed 55 kilometres to the national electricity market interconnector, with a sealed bitumen road to the site from Neuquen City. Other infrastructure includes power lines connected from the site to the nearby town of Caviahue, a plentiful water supply with oil field services and equipment in the Province. The population of the Neuquen Province is 475,000.”

For the full release see link below.

Source: Earth Heat Resources via ProActive Investors