Think Geoenergy – Mexxus RG consortium wins 1st geothermal permit for private enterprise in Mexico

MexxusRG, a Mexican company specialized in geothermal development, obtains the first exploration permit endorsed by SENER (Energy Commission) awarded to a private company. MexxusRG is a joint venture formed by Mexxus Drilling International (Mexxus), a Mexican based drilling company, and Reykjavik Geothermal (RG), an Icelandic based geothermal power Development Company. Both companies have been working together for several years in the state of Nayarit near the Ceboruco volcano completing scientific studies and feasibility work. The Ceboruco project is expected to be a 30 MW geothermal power project with expansion opportunities. It is expected that MexxusRG will begin exploratory drilling operations in late 2015 with three exploratory wells. This permission is a great achievement for the geothermal industry in Mexico as the first step to encourage private investment and development of this significant renewable energy source for the country.

Chris McCormick of RG said, “MexxusRG is very pleased to receive our geothermal exploration permit for the Ceboruco project under the new energy reform laws. Our thanks and congratulations to CRE and SENER as well on a major achievement bringing this together. We are very pleased with the progress made to date in Mexico and we look forward to continued progress on our project as we believe this is only the beginning for private geothermal development in Mexico. We are excited to be part of the first step and look forward to continued engagement with this significant opportunity.”

David Perez-Salinas of Mexxus added, “Mexxus Drilling has been involved in the geothermal industry in Mexico for almost 10 years and know that Mexico currently utilizes geothermal power successfully but also that there is tremendous potential outside of its existing installed capacity. With RG, we have been working with the various government agencies over the past few years to encourage the inclusion of private companies in the new energy reform. We are proud to be a part of this pioneering project with RG, the Government of Mexico and of Nayarit, and state agencies like NAFIN.”

RG CEO Guðmundur Thoroddsson stated, “RG believes Mexico is one of the best markets for geothermal power globally with its combination of resource potential, powerinfrastructure, market dynamics and progressive legislative framework with the passage of energy reform. MexxusRG has been active in encouraging private development with the Ceboruco project and we are thankful to be recognized for these efforts with the first private exploration permit. RG’s strategy has been to target high quality resource areas with great potential, even when that means being early and taking a bit more risk, and we are pleased those efforts have shown such positive progress in Mexico”

Written by Reykjavik Geothermal

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