Wasabi Energy signs on for German geothermal
THE BOURSE WHISPERER: Clean energy technology play Wasabi Energy has signed a term sheet to jointly develop, own and operate the Taufkirchen Geothermal Power Plant in Southern Germany.
Wasabi Energy will join an experienced consortium consisting of Swiss utility Axpo, German geothermal developer Geysir Europe GmbH and its wholly owned subsidiary Exorka GmbH, a Kalina Cycle licensee, to develop the Taufkirchen project.
The next stage in the development of the Taufkirchen project is scheduled to commence with the drilling of two wells targeting the Malm reservoir within the Molasse Basin, later this month.
“The Malm reservoir is a proven geothermal system and is the same geological sequence which has been successfully tapped by the Unterhaching Kalina Cycle Geothermal Power Plant which has been operating since April 2009, located approximately two kilometres north of Taufkirchen,”Wasabi Energy said in an announcement.
“In addition to the two Kalina Cycle power plants already installed in Germany, the decision by the project consortium to develop the Taufkirchen geothermal project as a Kalina Cycle power plant ensures the technology is well positioned to become the preferred technical solution for the geothermal sector in Germany.”
Wasabi Energy is set to earn a direct equity interest in the Taufkirchen project through the provision of specialised Kalina Cycle related services through its subsidiaries.
Wasabi Energy will earn a direct equity interest of up to 15% in the Taufkirchen geothermal project through the provision of the Kalina Cycle power plant and related services, once the first geothermal production well has been drilled and its viability of the resource confirmed.
Once the power plant is installed, Wasabi Energy will receive a licensing fee, engineering fees as well as a share of ongoing project earnings according to its relevant ownership interest in the project.
“The Taufkirchen geothermal project being developed by our consortium partners Geysir Europe and AXPO provides Wasabi Energy with an excellent opportunity to further consolidate the Kalina Cycle technology as the power plant technology of choice in the low temperature geothermal market,” Wasabi Energy executive chairman and Global Geothermal director John Byrne said in the announcement.
The Taufkirchen project is to be the third Kalina Cycle geothermal project in Germany, which Wasabi said confirms project developers in this market segment.
“We are delighted to be collaborating with Geysir Europe, the parent company of our Kalina Cycle licensee, Exorka, to jointly develop the Taufkirchen geothermal project,” Byrne continued.
“This is the first time we have combined our build, own, operate (BOO) strategy and capabilities with one of our Kalina Cycle licensees.
“We foresee many similar opportunities with our other Kalina Cycle licensees in the future and expect to capture the best of these opportunities moving forward.”