French energy firm Albioma enters geothermal market with acquisition of plant in Turkey
Gumuskoy geothermal plant, Turkey (source: Ormat)
Alexander Richter
27 Jan 2021
French renewable energy producer Albioma acquires a 75% stake in geothermal operator Gümüsköy in Turkey. The acquisition was done in cooperation with Turkish Egesim that acquired the remaining 25% stake.
In a release shared yesterday, French renewable energy producer Albioma announced having completed the acquisition of a majority stake (75%) in the geothermal energy producer Gümüsköy (in the Aydin region). The remaining 25% has been acquired by Egesim, an industrial services provider well regarded within the industry in Turkey.
This is the Group’s first geothermal power plant. The acquisition gives Albioma a bridgehead in a new business characterised by significant technical added value, offering a strong fit with the Group’s well-established biomass and solar energy businesses. This investment diversifies the Group’s production mix and is fully consistent with the strategic approach announced by Albioma, which aims to increase the proportion of renewable energy in its mix to between 95% and 100% by 2030.
The Gümüsköy power plant in Turkey
With an installed capacity of more than 1,600 MW, Turkey ranks fourth in the world for installed geothermal capacity, with considerable potential for future development. Commissioned in 2013 with a gross capacity of 13 MW, the Gümüsköy power plant uses heat from four production shafts to generate electricity under the terms of an operating licence valid until 2040 (with scope to extend for an additional 10-year period).
The plant currently exports up to 45 GWh of renewable electricity to the grid annually, with a dollarised feed-in tariff of approximately USD 105/MWh, valid until 2023. Working with the existing personnel retained by Albioma, improvement works will be carried out at the facility, to increase output.
Frédéric Moyne, Albioma’s Chairman and Chief Executive Officer, explains: “We are delighted to announce the acquisition of the Gümüsköy power plant, giving the Group an opportunity to develop a new, highly industrial business in geothermal energy. This initial project in partnership with a recognised local player gives us an opportunity to rapidly develop our expertise in this business while keeping capital investment to a reasonable level. We will be able to capitalise on this know-how in the coming years. Today’s announcement highlights Albioma’s dynamic growth and considerable expertise in the area 2 of renewable energy projects. I would like to thank the Group’s development teams, which demonstrated remarkable commitment in finalising this deal despite the challenging circumstances associated with the global health emergency. ”
The owner of the Gümüsköy operating company was BM Holding.
Source: Company release
Note: This article was corrected to reflect that Gümüsköy is actually in the Aydin region, not in Izmir.
