Hydrogen and geo-energy group Getech is to explore potential geothermal projects across Latin America, under a new agreement with technology developer Eavor.
Announcing the strategic collaboration agreement on Tuesday, Getech (AIM:GTC) said the two companies would work together to locate and de-risk “multiple closed-loop geothermal projects” across the region.
The partnership will use the former’s geoscience gravity and magnetics database, software package and its analytics capabilities to help identify and screen potential sites.
Eavor, meanwhile, would deploy its proprietary closed-loop energy system – Eavor-Loop – to generate baseload power. Likened by the company to “a massive subsurface radiator” the system collects heat from the natural geothermal gradient of the Earth via conduction, at geologically common and accessible rock temperatures.
Heated fluid is then brought to the surface where it is harvested for use in either direct heating application or converted to electricity for power generation.
Unlike traditional geothermal projects, the company says its technology doesn’t require the kinds of volcanic-like temperatures needed by other power systems, reducing the exploratory risk and opening the technology to a wider range of geographies.
Both power and heat applications will be considered, as the two firms work to asses “technically and economically favourable” sites.
Priority will be given to locations where multiple closed-loops can be deployed, in order to allow for quick scale-up and to minimise investment, they said.
Getech chief executive Jonathan Copus said the agreement was an “important first step” in building the company’s global geothermal portfolio.
“Having located and de-risked the development of these assets, Getech will retain the option to unlock value either through their sale to a third-party developer, or proceed to participate in their development, thereby expanding our geoenergy and green hydrogen project investment portfolio,” he added.
“Where appropriate, we will also work to expand project value by identifying co-location opportunities that leverage our expertise in green hydrogen production.”
The company has also initiated plans to develop a network of green hydrogen hubs across the Scottish Highlands, with the aim of decarbonising rail and transport.
Eavor CEO John Redfern said the partnership was a fundamental step in its work to commercialise his firm’s technology.
“Our ultimate goal is for hundreds of companies to develop Eavor-Loops around the world, including in Latin America,” he said.
Geothermal technology offers a significant opportunity for decarbonising the region, with between 55 and 70 gigawatts of potential spread across Latin America and the Caribbean – most of which is untapped – according to assessments by the Inter-American Development Bank.
“We believe that our strategic partnership with Getech, under which we are collaborating in the evaluation of a large pipeline of fully qualified projects, will facilitate this. We are excited by the prospect of accelerating the market adoption of Eavor-Loop and, in turn, enabling many countries and companies to be more aggressive in a shorter timeframe with their own energy transition plans to net zero,” added Mr Redfern.
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