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Engie and Reykjavik Geothermal form alliance for geothermal development in Mexico

Engie and Reykjavik Geothermal form alliance for geothermal development in Mexico Los Azufres III phase 1 plant, Mexico (source: video screenshot)
Alexander Richter 7 Dec 2015

French utility Engie (formerly GDF Suez) through its subsidiary Storengy and developer Reykjavik Geothermal announce a cooperation on geothermal development in Mexico.

In a release by French utility Engie (formerly GDF Suez) and Icelandic developer Reykjavik Geothermal, both firms announce a cooperation on geothermal development in Mexico.

Engie, through its wholly owned subsidiary Storengy and Reykjavik Geothermal plan to jointly look into development of geothermal projects.

Earlier this year the Icelandic and French geothermal clusters, in presence of Se?gole?ne Royal, the French Minister for Ecology, Sustainable Development and Energy and Ragnheidur Eli?n A?rnado?ttir, Iceland’s Minister for Industry and Trade signed a cooperation. The now announced collaboration between both companies follows the spirit of this agreement and will apply and develop geothermal exploration permits and concessions in Mexico.Geothermal energy development is the core business of Reykjavik Geothermal, but also a key component in the energy transition in which Engie inteds to be a key player.

 

The new Energy Reform initiated by Mexican President Enrique Pena Nieto offers the possibility for the private sector to enter the power generation market. Today, geothermal energy represents 823 MW of operating capacity, or 1.3% of the country’s installed electrical capacity, but only 6.5% of total estimated geothermal potential (13.4 GW). The country projects it could utilize its high temperature resource potential to reach 4.5 GW in 2030.

This alliance between Reykjavik Geothermal and ENGIE has been formed to facilitate an efficient pursuit of these targets. By combining both organization expertise and experience, the two companies aim to jointly take positions in the growing Mexican geothermal market.

With a staff of over 2,300 employees in Mexico, ENGIE is one of the largest private gas pipeline operators and the number two natural gas distributor in the country. The Group is present in Mexico in power generation (3 power plants, 300MW) and cogeneration, but also in gas distribution and transport (including 1,000 km of pipelines) and energy services.

Reykjavik Geothermal has been active in Mexico’s geothermal sector since 2011, with the participation in the Ceboruco project in the state of Nayarit. RG and its partners have been awarded one of the first two private geothermal exploration permits in the region of the Ceboruco 1 volcano by SENER. RG anticipates the commissioning of the first power plant in Ceboruco in 2018.

Reykjavik Geothermal (RG) is an internationally active geothermal development company focused on power development in regions which have significant yet often under-developed geothermal resources due to technical, policy and financing challenges that have historically hindered the development of geothermal. RG is active in several regions primarily in East Africa, Asia and Latin America in many cases commonly associated with the “ring of fire” while selectively exploring opportunities in the Middle East, US and Europe.

Engie (formerly GDF SuezI is an internationally recognised expert in subsurface valuation, Storengy is one of the few operators in the world combining a wide diversity of competences including subsurface sciences, drilling techniques, subsurface/surface integrated operation and industrial security.

ENGIE develops its businesses (power, natural gas, energy services) around a model based on responsible growth to take on the major challenges of energy’s transition to a low-carbon economy: access to sustainable energy, climate-change mitigation and adaptation, security of supply and the rational use of resources. The Group provides individuals, cities and businesses with highly efficient and innovative solutions largely based on its expertise in four key sectors: renewable energy, energy efficiency, liquefied natural gas and digital technology. ENGIE employs 152,900 people worldwide and achieved revenues of €74.7 billion in 2014. The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main international indices: CAC 40, BEL 20, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe, DJSI World, DJSI Europe and Euronext Vigeo (World 120, Eurozone 120, Europe 120 and France 20).

Source: Company release by email