Geothermal project in Guatemala receives $3.4m grant from GDF program

El Ceibillo project site, Guatemala (source: U.S. Geothermal Inc.)
Alexander Richter 25 Oct 2017

The El Ceibillo geothermal project by U.S. Geothermal in Guatemala has received a $3.4 million grant under the Geothermal Development Facility for Latin America, covering about 40% of the costs for a 3 production well drilling campaign.

Earlier this month, the projects to receive funding under the Geothermal Development Facility for Latin America were announced. 

Now, U.S. Geothermal has announced that its subsidiary in Guatemala has been awarded a $3.42 (EUR2.91) million grant from the German Development Facility for Latin America for further development drilling at the El Ceibillo project.  The grant represents an approximate 40% cost share for drilling up to three production wells, with a total estimated program cost of $8.81 (EUR7.486) million.  If the GDF funding is used on the project and the power plant is constructed, the grant would be converted into a loan.  The German Development Bank may consider financing the entire project when it moves to production.  The next phase of work for the project is being considered by the management team as 2018 budgets are being developed.

Expenditures at El Ceibillo are being carefully controlled until we see evidence that the energy market is advancing in Guatemala.  The Guatemalan Government announced earlier this year that a Request For Proposals (RFP) for 420 megawatts of energy, which included 40 megawatts for geothermal, was going to be issued in 2017.  There is still no indication of when that RFP may be issued.

“We are pleased to report on the flow test results from our San Emidio II development project, our near-term plans for increasing generation at San Emidio I, and in securing funding for the El Ceibillo project,” said Douglas Glaspey, Interim Chief Executive Officer. “After increasing production at Raft River this year, and planned generation increases at Neal using hybrid cooling and San Emidio I in 2018, we will continue to work toward increasing generation from our existing power plants while we seek PPAs for our development projects.”

Source: company release by email