Geothermal energy agreement in Spain

Enel Green Power and Petratherm develop projects on the Iberian Peninsula

Petratherm España and Enel Green Power have signed a Memorandum of Understanding to jointly evaluate and develop electricity production from geothermal projects in Spain, and to expand its portfolio of projects on the Iberian Peninsula.

Enel Green Power, the renewable energy company of the Enel Group, a leader in the production of geothermal energy, with about 800 MW of operational capacity and a portfolio of development projects that exceeds 300 MW, will bring its geothermal know-how and international leadership.

• The Memorandum of Understanding between Petratherm España and Enel Green Power provides:
• Cooperative development of electricity producing projects on the Iberian Peninsula and the Canary Islands;
• Direct and external exploration costs to be shared on a 50/50 basis with Special Purpose Vehicles (SPVs) to take forward projects through development phases with each project to be negotiated after sufficient exploration work is completed;
• Formation of a technical committee, comprising representatives of both parties to oversee the exploration and development programme;
• In relation to the more advanced Tenerife geothermal project, Enel Green Power:
  - contribute 50% of all exploration costs to date and ongoing costs incurred; and
  - fund the first deep production well in return for a majority equity stake in the project.

The MoU provides exclusivity and access to Petratherm’s geological knowledge, expertise and geothermal concessions in Spain to Enel Green Power.

Enel Green Power will bring its integrated geothermal know-how and international leadership into the joint development of the Petratherm’s projects.

Enel Green Power is the Enel Group Company that is fully dedicated to the development and operation of plants generating energy from renewable sources at the international level, with a presence in Europe and the Americas.

Thanks to its 17.2 billion kWh generated from hydro, solar, wind and geothermal energy sources, Enel Green Power, is the sector leader in Europe. With an installed capacity of about 4,700 MW, Enel Green Power is Italy’s leading player in the global renewables industry. The company has over 500 plants operating worldwide, with a generation mix that includes wind, solar, hydro, geothermal and biomass energy sources.

Enel Green Power’s geothermal experience can be summarized as follows:

• 100 years of experience in geothermal electricity and direct utilization;
• Resource management for the sustainable exploitation;
• More than 1000 MW of geothermal plants operating or under development, of which approximately 700 MW are operating in Italy and about 60 MW operating in USA;
• First in Europe and third in the world for geothermal electricity production
• Deep resource development; dry steam, flash and binary plant in Enel Green Power’s portfolio;
• Vertical integrated company: research, exploration, engineering, drilling, maintenance, operation of field and plant;
• Best practice in drilling target identification;
• Research activities ongoing for the frontier technologies;
• International footprint in 14 countries.