First geothermal power plant inaugurated in Colombia

Parex Resources Inc., an international oil and gas exploration and development company with headquarters in Calgary, Canada has reached a milestone for the company and Colombia. In a joint project by Parex, the Universidad Nacional de Colombia-Medellin, and the national government through the Ministry of Mines and Energy, a small-scale 100 kW geothermal power generation unit was inaugurated at the Las Maracas field in Casanare, Colombia. This marks the first geothermal power generation in the country.

Focused on oil and gas exploration in Colombia, Parex Resources has put an emphasis on sustainable, profitable, conventional oil and gas production. During oil production, the company encountered high temperature gradients, permeable rocks, and fresh water which could be brought to the surface without additional cost as a co-product of oil extraction. For the electricity needs of the oil production, traditionally diesel and natural gas is used to run pumps and facilities 24/7. Utilizing hot water coming to the surface is a great value proposition in the use for power generation. It is a baseload source of power and can provide lower cost of electricity generation when compared with diesel or gas in remote locations.

“We are very proud to have led this geothermal pilot initiative and to celebrate this important milestone for our company, our industry and for Colombia. Harnessing heat and hydrocarbon energy in tandem is an exciting development for its positive impact on our environmental goals and our operating costs. We look forward to using geothermal and other innovative technologies to drive meaningful change for our business and the communities that we operate in.” said Imad Mohsen, President and CEO of Parex Resources.

Gordon Foo, a member of the project team adds “Thanks to the hard work and dedication of our geothermal team, we mark an important step towards a cleaner energy future for Colombia. We are grateful for the support of our colleagues at Parex, UNAL Medellin, the Colombian Ministry of Energy and Mines and Rank who made this project possible.”

The generation equipment was designed, built, and commissioned Spanish-based ORC manufacturer Rank, which shared a good overview of the project on its website earlier this year (pdf).

It has an installed power generation capacity of 100 kW, capable of generating up to 72,000 kWh/ month, which will help reduce emissions from fossil fuel-sourced power generation by around 550 tons of CO2 per year.

The project is a great example of innovation and showcase of possible environmentally friendly practices by the oil sector.

Parex is exploring further application of a similar approach at other fields and will have an identical unit online in their Rumba field in the coming weeks.