Informative podcast on Opportunities for geothermal in Latin America
In a valuable podcast by Frontera, individuals of the group that is going to manage the Geothermal Development Facility for Latin America, provide their insight on the opportunities for geothermal energy in the region.
A recently published podcast by Frontera, a business news, investment research and political risk website on frontier and emerging markets, provides some great insight into the opportunities for geothermal in Latin America.
The podcast is made up of discussions of a good group of individuals that are working together on the “Geothermal Development Facility for Latin America”.
The Geothermal Development Facility for Latin America is privately managed, Mauritius-based foundation with an initial capitalization of EUR50 million from the German government (KfW) and the European Union (EU).
Other investment in a similar collective amount from multilateral development financial institutions (CAF, IDB, World Bank, CABEI, Norfund, AFB, DFID etc.) is under consideration.
We reported on the fund in a previous post.
GDF’s purpose is to provide early stage grant funding for geothermal development in 10 countries in Latin America in order to overcome the significant exploration cost hurdles which curtail the economic development of geothermal project. The funding will support surface studies and early stage drilling (first 3 wells) with a goal to create 350MW of geothermal power in the region at an estimated capital requirement of between EUR1.5 and 2.0 billion when fully deployed.
By addressing exploration the fund will facilitate subsequent sources of Development Finance Institution (DFI) funding to support the commercialization of the proven geothermal resource, and GDF is a catalyst to reaching a stage where those funds can be mobilized.
The foundation is managed by U.S.-based IDA Fund Management, LLC, which is a consortium consisting of Interlink Capital Strategies, the Dewhurst Group and Chris McCormick from Ambata Capital. These are well-known professional service companies actively involved in structured finance in emerging markets and geothermal development, which won an international tender conducted by KfW in the 2nd quarter of 2016. The formal launch of GDF will be in the fourth quarter of 2016, with the first solicitation for proposals to occur before or within the first quarter of 2017.
In the podcast, the following gentlemen provide their very valuable insight.
- Alan Beard, Managing Director, Interlink Capital Strategies
- Joseph Szamosfalvi, Managing Director, New Europe Capital Management
- Kerry McCallum, Chief Operations Officer, Dewhurst Group