Call for tender for exploration contract in Domuyo, Neuquen, Argentina

Domuyo volcano, Neuquen province, Argentina (source: Flickr/ pablodf, creative commons)
Alexander Richter 13 Aug 2012

Call for tender for exploration contract for the Domuyo, Neuquen project in Argentina by the local Mining Department.

Invest in Argentina, together with Banco de Proyectos de Inversón Productiva and the Foreign Ministry of Argentina, have released a call for tender.

The tender is for a “Concession to explore geothermal resources in Domuyo, province of Neuquén, Argentina, to determine if their exploitation is commercially feasible.”

The sponsoring institution—the concession holder of the Maitena and Maria Victoria mines—is calling interested investors to submit their proposals to be awarded an exploration contract with the purpose of determining and exploiting the geothermal energy (endogenous vapors). The concessionaire awarded the exploration contract under the bidding terms and conditions will have the right to exercise the option to exploit the geothermal fluids for a maximum term of 25 years and to sign a mining concession contract with the sponsoring institution to build and operate one or more geothermal power plants to supply the Argentine wholesale electricity market.

The exploration activities must confirm a viable active geothermal area, determining that the extraction of the thermal fluids is economically viable and can be done without damaging the sustainability of the geothermal energy resource. The concession will include the installation of a geothermal power plant to supply the wholesale domestic market.

Competitive advantages of the project: a logistic platform in the province of Neuquén developed over the years as a result of the extensive growth of the local oil industry; highly qualified services and human resources; an expected differential treatment for renewable energy prices for sources that meet the goals set for renewable power generation; the current deficit in the energy supply and the increasing gas prices highlight the potential of new geothermal energy sources. Furthermore, geothermal energy can provide baseload power to the power grid, being a plant with a high availability factor).

Source: Foreign Ministry of Argentina/ Banco de Proyectos de Inversión Productiva

Call for Tender (pdf)