GT Energy aims for $4.2 million in first geothermal fund raising round

GT Energy aims for $4.2 million in first geothermal fund raising round Southampton District Energy Scheme geothermal heating plant, UK (source: commons wikimedia, suitcivil)
Alexander Richter 12 Sep 2012

Anglo-Irish GT Energy is engaging a corporate finance firm to raise $12 million in a first geothermal fund raising campaign to finance the detailed geological survey work on its first planned geothermal heating project in Manchester, UK.

Anglo-Irish GT Energy is looking at raising GBP2.6 million ($4.2 million) to expand the company’s operations as well as carry out “detailed geological survey work” on its first project.

The company is looking at building a 10 MW thermal geothermal plant in Manchester.

The fund raising will be lead by Turquoise International, which has an experience of raising financing for geothermal projects in Germany.

GT Energy aims at taking the German geothermal approach as an example for its work in the UK, where it has an ambition to develop up to 500 MW of geothermal heating capacity.

As previously announced, the company is working with E.ON to build five geothermal projects in total. The company expects to need funding of up to GBP 70 million ($112 million) from exploration through to commercial operation.

The company plans to tap into the UK Government’s Renewable Heat Incentive (RHI). This incentive program aims to support renewable heat projects in the UK and has a budget of GBP 70 million to spend during 2012 and 2013.

There are though uncertainties about planned freezing of subsidies for deep geothermal in the UK under the Renewable Obligation.

GT Energy is planning a second round of fund-raising in the summer of 2013, to raise capital for the completion of the Manchester plant construction.

Source: Greenwise Business