US Geothermal receives license for 25 MW project at El Ceibillo, Guatemala

Pacaya and Agua volcanoes as seen from Guatemala City (source: Commons/ wikimedia, Sir James)

Alexander Richter 18 Sep 2013

U.S. Geothermal Inc., announced today that the Guatemalan Ministry of the Environment and Natural Resources (“MARN”) has issued an Environmental License for the construction and operation of the planned, first phase, 25 megawatt power plant at the El Ceibillo site. The El Ceibillo development project is an advanced stage, steam geothermal prospect within a 24,710 acre (100sq km) energy rights concession located 8.5 miles (14 km) from Guatemala City, the largest city in Central America. Temperatures in excess of 500° F (275° C) have been encountered during recent drilling at this project.

The license is based on the Environmental Impact Assessment Study that was submitted in December 2012, describing the initial design of the 25 megawatt facility, and requires the submittal of final design specifications for review by MARN prior to starting physical construction of the plant. Additionally, the license requires compliance with all legal and regulatory requirements under Guatemalan law, submittal of an air quality monitoring plan, and that final design comply with the strict guidelines for noise, dust and hydrogen sulfide emissions. Prior to issuance of the license, an environmental bond of $344,850 Quetzals (approximately US $45,000) was posted with the Ministry of Environment and Natural Resources.

“The issuance of this license is an important step in our development plans for the El Ceibillo Project,” said Dennis Gilles, CEO of US Geothermal. “While we are still working on developing the geothermal reservoir, having the environmental license in hand will allow us to move the project forward within an efficient timeframe.”