Repsol withdraws from geothermal exploration in La Palma
Lighthouse of Fuencaliente, La Palma (source: Xosema, CC BY-SA 4.0, via Wikimedia Commons)
Carlo Cariaga
10 Jan 2025
Citing delays in permitting that will compromise the granting of aid, Repsol has withdrawn from geothermal exploration activities in La Palma.
Spanish energy and petrochemical company Repsol has withdrawn from a geothermal exploration project in the island of La Palma, citing delays in the issuance of permits that have resulted in the lapse of the period for granting of aid. The announcement was made by Manuel Dominguez, Vice President of the Canary Islands and Minister of Economy, Industry, Commerce, and Self-Employed Workers,
Repsol was one of six companies that were awarded geothermal exploration blocks covering the southern half of La Palma following a tender by the Department of Ecological Transition and Energy of the Government of the Canary Islands.
The proposal of Repsol for geothermal exploration involved investigation in 16 municipalities including Fuencaliente, Villa de Mazo, Breña Baja, and Breña Alta. The company had planned to spend EUR 34 million on the project and was set to receive around EUR 4 million of aid from the Institute for the Diversification and Saving of Energy (IDAE) specifically for their La Palma projects.
Earlier in 2024, it was also reported that both Repsol and Unelco had withdrawn their research permits for geothermal exploration in Tenerife.
Mariano Hernandez Zapata, Minister of Ecological Transition and Energy, said that he is not concerned about Repsol withdrawing from the project, as the blocks awarded to the company will be assigned to other beneficiaries. The Minister also said that in cases where the execution period for subsidies is too short, he trusts in the “good work of the Commissioner so that there extensions and deadlines can be extended.”
The head of the Canary Island energy portfolio however expressed hopes that the funding for geothermal exploration allocated by the IDAE to Repsol can instead be distributed to other contractors.
Source: El Economista and Atlantico Hoy
