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Petratherm enters cooperative agreement for Madrid geothermal heating project

Alexander Richter Alexander Richter 14 Aug 2009

etratherm has entered a cooperative agreement with the Spanish federal and Madrid regional governments to progress the company's 8 MW Madrid Geothermal District Heating (GDH) project.

Reported by EnergyCurrent, Australian “Petratherm has entered a cooperative agreement with the Spanish federal and Madrid regional governments to progress the company’s 8 MW Madrid Geothermal District Heating (GDH) project.

Petratherm’s Madrid GDH project has been highlighted as one of six renewable energy projects of interest within the Madrid Regional Government’s Renewable Energy Cluster, which is seeking to advance renewable energy projects in the Madrid region.

The agreement provides for a committee comprised of representatives of Petratherm and the two Spanish governments to expedite the remaining steps of the project that are required th achieve financial close.

Those steps include forming agreements with customers for the supply of heat. The customers include various departments of the Madrid Regional Government.

Other steps include assessing potential subsidy and financing options available from the government programs for the GDH project; obtaining environmental clearances for drilling and development; securing a competitively based engineering, procurement and construction contract; and establishing a competitively based operations and maintenance contract.

As part of the agreement, the Spanish federal government, through its Institute of Renewable Energy and Energy Efficiency, will also contribute AUD$150,000 (US$126,249) toward the feasibility assessment work, which is planned for completion by the end of this year.”

Source: Energy Current