Press Release – ENGIE and Reykjavik Geothermal cooperate in the field of geothermal energy in Mexico

ENGIE, the French utility, through its wholly owned subsidiary Storengy and Reykjavik Geothermal, the Icelandic geothermal development company, will jointly study the development of geothermal projects in Mexico.

Following cooperation agreement between Iceland and French geothermal clusters signature in the presence of Ségolène Royal, French Ecology, Sustainable Development and Energy Minister and Ragnheiður Elín Árnadóttir, Icelandic Industry and Trade Minister, ENGIE and Reykjavik Geothermal have initiated cooperation to apply and develop geothermal exploration permits and concession in Mexico. Geothermal carbon-free energy is indeed Reykjavik Geothermal core business and an essential component of the energy transition in which ENGIE intends to be a key player.

The new Energy Reform initiated by Mexican President Enrique Pena Nieto offers the possibility for the private sector to enter the power generation market. Today, geothermal energy represents 823 MW, or 1.3% of the country’s installed electrical capacity, but only 6.5% of total estimated geothermal potential (13.4 GW). The country projects it could utilize its high temperature resource potential to reach 4.5 GW in 2030.

This alliance between Reykjavik Geothermal and ENGIE has been formed to facilitate an efficient pursuit of these targets. By combining both organization expertise and experience, the two companies aim to jointly take positions in the growing Mexican geothermal market.

With a staff of over 2,300 employees in Mexico, ENGIE is one of the largest private gas pipeline operators and the number 2 natural gas distributor in the country. The Group is present in Mexico in power generation (3 power plants, 300MW) and cogeneration, but also in gas distribution and transport (including 1,000 km of pipelines) and energy services.

Reykjavik Geothermal is active in Mexican geothermal business since 2011, with the participation in Ceboruco project in the state of Nayarit. RG and its partners have been awarded by SENER one of the first two private geothermal exploration permits in the region of the Ceboruco 1 volcano. RG anticipates the commissioning of the first power plant in Ceboruco in 2018.

Written by Reykjavik Geothermal

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