Chile awards concession to exploit geothermal energy in the south

Through its subsidiary GGE Chile, the company GeoGlobal energy will invest US$ 226 million to undertake drilling activities and to build and operate a system to extract and turn geothermal fluids into electricity.

The Chilean Mining Ministry has just awarded the company GeoGlobal Energy of New Zealand a concession of 7,800 hectares in the area of San Gregorio
The Chilean Mining Ministry has just awarded the company GeoGlobal Energy of New Zealand a concession of 7,800 hectares in the area of San Gregorio

Over recent years Chile has systematically staked its bets on the need to diversify the energy matrix, which is currently very heavily dependent on hydroelectric capacities.

In this way, the authorities – aware of the need to explore new sources that are in line with the economic growth experienced over the last two decades – have reinforced Chile’s energy capacity with research to foster the use of bio-fuels, in addition to choosing wind power as a new resource in several cases.

To further foster this reality, the Chilean Mining Ministry has just awarded the company GeoGlobal Energy of New Zealand a concession of 7,800 hectares in the area of San Gregorio, which is located between the Bío Bío and Araucanía Regions.

The ministry informed of the operation in a press release published in the  Official Gazette,  which states that the company’s Chilean branch GGE Chile Spa will have to invest US$ 226 million over the next three years.

The money will specifically be allocated to financing the tasks of drilling, building, commissioning and operating a system for extracting, creating, and turning thermal fluids into electricity.

In addition, it states that the company will have to build two geothermal plants in the area, where the inspections have been undertaken since 2004, one with 9.4 MW capacity for an investment of US$ 38.3 million and another with a capacity of 70 MW that will involve a total investment of US$ 187.7 million.

It should be noted that over the last few years the energy issue in the country has been a matter of concern, interest and development among the population. This was why the Michelle Bachelet
administration, which handed over power a few days ago to Sebastián Piñera, created the Energy Ministry, an institution that will determine the specific way to the actors responsible for the operation and supply of the country’s energy system.

This post is also available in Spanish