Green Green:  Financing News for the U.S. Geothermal Industry


Volume 1, Number 2
May 31, 2000

HOT NEWS

Survey Identifies 46 Geothermal Sites in China with over 1,500 MWe in Power Generation Potential

World Bank Approves US$43.6 million for Geothermal District Heating in Poland

Asian Development Bank Project Will Help Bring Electricity to Indonesia's Outer Islands

Agreement on Ending Tied Aid Blocked


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Survey Identifies 46 Geothermal Sites in China with over 1,500 MWe in Power Generation Potential

The People's Republic of China has 46 sites with a measured or geothermometric temperature of over 150ºC, and a total estimated power generation potential of at least 1,588 MWe. Taiwan has eight sites with a total estimated power generation potential of 130 MWe.

The sites are included in a detailed Microsoft® Access 2000 database of 262 geothermal sites in China and Taiwan compiled and built by Bob Lawrence & Associates, Inc. for Idaho National Engineering and Environmental Laboratory (INEEL).

The five hottest sites in China, and their maximum temperatures, are:

  1. Yangbajian - 330ºC
  2. Rehai (Hot Sea) - 275ºC
  3. Mengman - 234ºC
  4. Ruili - 230ºC
  5. Reli - 227ºC

Taiwan's hottest sites are:

  1. Qingshui (Chingshui) - 300ºC
  2. Tatun (Datong) - 293ºC
  3. Lushan - 173ºC
  4. Tuchang - 173ºC
  5. Pingdong - 140ºC
Geothermal Resources in China

To obtain a copy of the report in PDF format, contact Liz Battocletti.

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World Bank Approves US$43.6 million for Geothermal District Heating in Poland

The World Bank approved earlier this month a US$38.2 million equivalent loan and a US$5.4 million equivalent Global Environmental Facility (GEF) Trust Fund Grant to reduce air pollution through the increased use of geothermal heat in the Podhale region of southern Poland, including the cities of Zakopane and Nowy Targ.

The Podhale Geothermal District Heating and Environment Project is one of the largest renewable energy projects the World Bank supports in the Europe and Central Asia Region, and will be one of the largest geothermal district heating projects in the world when completed.

The project will satisfy most of the heat demand in the Podhale Valley. Improving the air quality in Zakopane, a well-known ski resort in the Tatra Mountains, is also expected to attract more tourism to the region.

Reduction of carbon dioxide emissions under the project will support Poland's efforts to meet its international obligations under the United Nations Framework Convention on Climate Change.

The total cost of the project is US$96.70 million. The project is being co-financed with the European Union, the United States, the government of Denmark, and others. The guarantee for the loan is provided by the government of Poland.

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Asian Development Bank Project Will Help Bring Electricity to Indonesia's Outer Islands

The Asian Development Bank (ADB) will provide technical assistance (TA) to prepare a loan proposal that will help the Government of Indonesia increase electrification in the outer islands.

The specific TA outputs of the Outer Island Electrification Project (PPTA: INO 34100-01) include:

  • a power development strategy for the outer islands,
  • a five-year investment program for increasing the supply and use of electricity,
  • identification of the communities and regions that can derive maximum benefit in terms of removing poverty by using more electricity,
  • review of earlier tariff-related studies and available information on the use of alternatives in rural communities, and recommendations for an appropriate tariff strategy for the outer islands,
  • a feasibility study, including technical and project cost details, for the extension of supply to an agreed list of communities and regions,
  • recommendations regarding institutional arrangements to be incorporated to sustain the distribution of electricity to the communities, and
  • a second feasibility study, including technical and project cost details, for suitable renewable energy projects to augment power generation capacity.

The US$800,000 project is in the beginning stages; a fact-finding mission is scheduled for this month. No action has yet been taken to recruit consultants.

For more information, see the ADB Web site. Key contacts are Hong Wang, Project Officer, Energy Division East, World Bank; and Denny Barnes, Senior Commercial Officer and Liaison to the ADB, U.S. Department of Commerce.

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Agreement on Ending Tied Aid Blocked

Several countries blocked a deal which could begin to phase out tied aid, the practice of earmarking development aid for the purchase of goods from donor countries, reports the Financial Times (May 11, 2000, p.6).

Even after concessions were made to exclude food aid and technical assistance from the deal, objections from some countries -- believed to include Japan, which has a large tied aid program -- were enough to defer an agreement at least until June 20. But participants at the meetings of the Organisation for Economic Co-operation and Development's (OECD) Development Assistance Committee (DAC) said "a large majority" of the countries present supported the principle.

The proposals would end tied aid, which charities say reduces aid effectiveness by up to 25 percent, to the least developed countries (LDCs). "Failure to agree would seriously undermine the credibility of donor governments and the DAC, would lead to aid abuse and set back any prospects for untying aid to other categories of countries," said UK-based charity ActionAid, which has taken the lead on the issue.

As they stand, the proposed reductions apply only to the LDCs, excluding many aid recipients such as several countries eligible for debt relief under the Highly Indebted Poor Countries (HIPC) initiative. Earlier this year, notes the story, the importance of liberalizing trade with HIPC countries was brought into sharp relief by the World Bank, which put the issue on the agenda of its spring meetings in Washington.

(World Bank Development News Friday, May 12, 2000)

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Geothermal Project Pipeline

The following projects are in various stages of development. Projects which have not been listed before are marked NEW.

Country Project Name Financing Source US$ (million) 
Colombia Feasibility of Azufral Geothermal Field (TC9706344) English

Spanish
Inter-American Development Bank, Japanese Special Fund

Japanese consulting firms are required to carry out all of the studies but may subcontract up to 50% of the work.

$1.5 - Approved by the Board March 1, 2000
Costa Rica Miravalles III Geothermal Power Plant (1105/OC) Inter-American Development Bank, Private $70.0
Djibouti Assal Geothermal Power Plant (Feasibility Study) U.S. Trade and Development Agency $85.0
El Salvador

NEW
Second Electric Development Program (Loan No. 838/OC-ES)

Stabilization and Rehabilitation of the Ahuachapán Geothermal Field Project
Inter-American Development Bank $332.0

Procurement underway.
Latin America Renewable Energy in Latin America (TC9508279 and TC9508287) Multilateral Investment Fund $3.4 - In early stages of identification

Consultants would be hired to carry out feasibility studies.
Mexico Cerro Prieto Private $120.0
Mexico Los Azufres II, 100 MWe CFE Tender TBD - Tender deadline - 12 April 2000, Initiation of Project - 21 June 2000, Completion of Project - 25 July 2002
Mexico Off-Grid Rural Electrification (MXGE68390) World Bank, Global Environment Facility

The project will test private-sector implemented mechanisms for sustainable electrification of off-grid rural areas, using conventional and renewable energy technologies, as feasible.
$6.5 - Appraisal mission scheduled for early fiscal year 2001

Consulting services to be determined.
Philippines

NEW
Rural Electrification World Bank

The project would support the National Energy Plan through investment support to provide selected rural areas with reliable electricity supply in a sustainable manner, including renewable energy.

First phase will support investments for off-grid rural electrification directed at achieving visible results on the ground within a relatively short term.
$50.0 - Project is being identified

Consulting services to be determined.
Poland Podhale Geothermal District Heating and Environment Project (PLPE37339 and PLGE57993) World Bank, European Union, Government of Denmark, Global Environment Facility, Local contribution, U.S. Agency for International Development $99.3
Poland

NEW
Renewable Energy/Geothermal, District Heating for Zakopane (PLPA37339) World Bank $32.6 - Project preparation is underway

No consultants are required.
Portugal Azores

49% ownership by the Portuguese electrical utility, Electricidade de Portugal (EDP); 51% by the Azores electrical utility, Electricidade dos Acores (EDA).

Azores sources suggest that the Azores Government would be happy with the presence of a US company with the right technology, management record and resources as a strategic partner in the consortium.

$30.0
Russia Mutnovsky Independent Power Project, Kamchatka European Bank for Reconstruction & Development $353.2
Viet Nam Central Region Geothermal Power U.S. Trade and Development Agency $141.0
Viet Nam

NEW
Rural Energy (VNPE56452) World Bank

The project's main development objective is to expand rural access to electricity in about 671 communes located in 32 provinces of Viet Nam through grid extension.

The project will also promote the application of renewable energy sources.
$150.0 - Negotiations were scheduled for late April 2000

Consulting services to be determined.

Sources: United Nations Development Business; the Infrastructure Division; the International Trade Administration, U.S. Department of Commerce Global Infrastructure Projects Database; others as noted.

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Upcoming Events

May August November
June September December
July October 2001
May 28-June 10, 2000
Web site: World Geothermal Congress 2000
Kyushu and Tohoku, Japan

June 5-6
Web site: ACEC-International Markets Conference -- How Washington Can Help You Do Business Overseas
Washington, D.C.

Engineering and design firms nationwide are invited to explore the international marketplace and meet the players than can help them build their business internationally. A wealth of government resources exists to support U.S. firms in the global marketplace; this conference will help you learn about the federal agencies and meet the players that can help your company succeed overseas.

June 15-16
Web site: 3rd Annual Private Power in Central America Conference
Miami, FL
Center for Business Intelligence, LLC

Learn about privatization and development, regional markets, gas pipelines, renewables, financing and risk management, including the latest privatization and development plans from Costa Rica, Honduras, and Nicaragua. Hear from seven leading developers: Duke Energy International; El Paso Energy International; Energia Global International, Ltd.; Enron Caribbean Basin and Central America; Hart Energy International; Hydro Quebec International; and International Wind Companies.

June 29-30
Overseas Private Investment Corporation (OPIC) Central American and Caribbean Investment Conference -- Houston, TX
Email: Elio Muller
Tel: (202) 336-8777

U.S. businesses of all sizes will learn about investment opportunities in Central America and the Caribbean, financial resources, OPIC loans and political risk insurance, successful OPIC projects in the region and how project sponsors made them work, potential project sponsors, and special products available for small U.S. businesses.

July 1-7
World Renewable Energy Congress VI, WREC-2000
Brighton, UK
Email: Professor Ali Sayigh

July 10-11
Overseas Private Investment Corporation (OPIC) Central American and Caribbean Investment Conference -- New York, NY
Email: Elio Muller
Tel: (202) 336-8777

See June 29-30 entry.

July 10-12
Web site: Jakarta International Energy Conference and Exhibition (JIEC)-2000
Indonesian Investment Summit on Mining and Energy
"Capturing Opportunities in the Changing Indonesia -- A Shifting Paradigm"
Jakarta Convention Center, Indonesia
Email

JIEC-2000 will be a conducive event for discussing the crucial issues facing the Indonesian mining and energy sectors. The conference will introduce and promote "The Changing Indonesia" by showcasing the nation's promising mining and energy sector investment opportunities.

July 23-28
Web site: GlobeEx 2000 Conference and Tradeshow, Energex '2000
Las Vegas, NV
Email: Cheryl Lydon
Tel: (702) 317-0777
NTS Development Corporation

GlobeEx 2000, combining traditional energy disciplines with cutting edge alternative technologies and commercial financing, showcases the latest advancements in alternative, sustainable, and renewable energy technologies. GlobeEx 2000 will include workshops, technical presentations, expert panel discussions, keynote speakers, plenary sessions, a trade exhibition, and provide numerous networking activities.

July 24-25
Web site: Competing and Partnering with Japanese Business
Pasadena, CA
Email: California Institute of Technology

Participants will gain a detailed knowledge of Japanese business organizations and practices and a deeper understanding of the motivations and expectations of their Japanese partners, colleagues, and competitors.

July 31-August 1
Web site: Financing Latin American Power Projects
Miami, FL
Center for Business Intelligence, LLC

Latin America is the fastest growing energy market in the world. To capitalize on the electric power demand growth of the next decade, international energy companies must mitigate political, regulatory, and sovereign risk in order to fund the development of projects and acquisitions in these emerging markets. The conference will provide participants with the latest information and trends in finance in the Latin American power sector, and recount six case studies.

August 6-17
31st Session of the International Geological Congress
Rio de Janeiro, Brazil
Email: Andrea Förster or Valiya M. Hamza

August 14-15
Web site: Partnering with Chinese Business
Pasadena, CA
Email: California Institute of Technology

This program focuses on the Chinese business environment, setting-up and managing corporations in China, partnering with Chinese firms, protecting intellectual property, and building effective relationships with Chinese colleagues.

August 29-31
Clean Energy Trade Mission to Indonesia
U.S. Department of Commerce
Kathryn Hollander, Trade Advisor
Tel: (202) 482-0385; Fax: (202) 482-5666

September 10-14
Clean Energy Trade Mission to Mexico
U.S. Department of Commerce
Sam Beatty, Trade Advisor
Tel: (202) 482-4179; Fax: (202) 482-5666

October
U.S.-China Renewable Energy Business Development
Kunming, Yunnan Province, China
Email: Lee Gebert, DOE

DOE will organize a one-day U.S.-China Renewable Energy Business Development meeting to coincide with China's 21st Annual Solar Thermal Conference. Although it is a solar conference, other types of renewable energy will be discussed at the conference.

October
Seminar on the Role of Geothermal Energy in Sustainable Development
Radziejowice, Poland
Email: Kazanowska Agnieszka

October 2-3
Web site: Competing and Partnering with Japanese Business
Pasadena, CA
Email: California Institute of Technology

Participants will gain a detailed knowledge of Japanese business organizations and practices and a deeper understanding of the motivations and expectations of their Japanese partners, colleagues, and competitors.

October 15-21
Clean Energy Trade Mission to Russia
U.S. Department of Commerce
Rachel Halpern, Trade Advisor
Tel: (202) 482-4423; Fax: (202) 482-5666

November
Renewable Energy Advancing Technology for Industrialisation
Brighton, UK
Email: Robert Pinheiro

November 26-December 5
Clean Energy Trade Mission to India
U.S. Department of Commerce
Nazir Bhagat, Trade Advisor
Tel: (202) 482-3855; Fax: (202) 482-5666

November 28-December 1
Web site: China International Environment, Renewables, and Energy Efficiency Exhibition and Conference -- CERE' 2000
Beijing, China
Email: Mr. Yong Zhang, Ms. Xuemei Hu, or Mr. Yu Fan

December 4-8
Clean Energy Trade Mission to China
U.S. Department of Commerce
Kathryn Hollander, Trade Advisor
Tel: (202) 482-0385; Fax: (202) 482-5666

Week of December 4
Web site: Village Power 2000: Bringing Business to Rural Development
Washington, D.C.
World Bank

December 6-7
Web site: Partnering with Chinese Business
Pasadena, CA
Email: California Institute of Technology

This program focuses on the Chinese business environment, setting-up and managing corporations in China, partnering with Chinese firms, protecting intellectual property, and building effective relationships with Chinese colleagues.

2001

May 8-10
Email: Sustain 2001: the World Sustainable Energy Conference
Amsterdam, The Netherlands

October 21-25
Web site: 18th World Energy Congress
Buenos Aires, Argentina

Other geothermal and related calendars:

To have your event listed, email Liz Battocletti.

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Watch for the next issue of Green Green coming
July 31, 2000

THE SMALL PRINT

Green Green is produced for the Idaho National Engineering & Environmental Laboratory (INEEL) under Purchase Order No. K99-181018 and the U.S. Department of Energy, Assistant Secretary for Energy Efficiency and Renewable Energy, Office of Geothermal and Wind Technologies.

This information was prepared as an account of work sponsored by an agency of the U.S. Government. Neither the U.S. Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise, does not necessarily constitute or imply its endorsement, recommendation, or favoring by the U.S. Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the U.S. Government or any agency thereof.


Bob Lawrence & Associates, Inc.
345 South Patrick Street
Alexandria, Virginia 22314
USA

Phone: 703/836-3654
Fax: 703/836-6086
Email: lbatto@huskynet.com

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