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

Volume 3, Number 7
30 November 2002

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World Bank Report Outlines Strategy to Promote Geothermal Development in Europe and Central Asia

New Zealand Geothermal Institute to Close

Companies Pledge $225 Million to Global GHG Emissions Research


In Short

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World Bank Globe

World Bank Report Outlines Strategy to Promote Geothermal Development in Europe and Central Asia

In search of a systematic approach in the support of developing strategies for renewable energy is essential, the World Bank completed a report, "A Strategy for Increasing the Use of Geothermal Energy in the Europe and Central Asia Region (ECA)" in October.

The purpose of the report is to draft a strategy for geothermal development for the ECA Region. There are four distinct elements to the strategy presented in the document:

  1. Assessment of economically producible resources in order to comprehend the range of resource types and locations;
  2. Identification of barriers to development and their mitigation and/or removal to reduce implementation costs;
  3. Recommendations for development of technical assistance and capacity-building programs for client countries to help promote the use of geothermal energy; and
  4. Suggestion of ways and mechanisms to finance geothermal energy projects in ECA.

Developing geothermal resources in the ECA for both direct uses and power generation is timely. Various directives, such as from the European Union (EU), mandate greater utilization of renewable energy. The EU proposes to expand the utilization of renewable energy from 6% to 12% by the year 2010. A primary barrier to their increased development is that geothermal projects have been difficult to finance.

Innovative financing is mandatory. This requires marshaling both conventional (grants for technical assistance and project development) and non-conventional instruments of development assistance (commercial loans, partial risk guarantees, revenues from carbon trading) to stimulate the development of an under-utilized and environmentally friendly resource such as geothermal energy.

Additionally, the concept of a Geothermal Energy Development Fund (GeoFund) to help promote the systematic use of geothermal energy in the ECA countries has been discussed with the Global Environment Facility (GEF), the Prototype Carbon Fund (PCF), Governments, and appropriate organizations in a number of interested countries. Several countries have expressed their willingness to provide bilateral funds. The GeoFund is currently at the stage of concept development.

The World Bank report is currently under consideration.

For more information, contact:

Mr. Helmut Schreiber
Lead Environment Economist
Infrastructure and Energy Services Department (ECSIE)
Europe and Central Asia Vice Presidency
The World Bank
Tel: (202) 473-6910


Geothermal Institute Banner

New Zealand Geothermal Institute to Close

According to a story published in the New Zealand Herald on 25 October 2002, the Government of New Zealand will cut funding to the Geothermal Institute at the University of Auckland.

The New Zealand Agency for International Development (NZAID), a semi-autonomous agency within the Ministry of Trade and Foreign Affairs, provided fellowships totaling over $1 million to enable geothermal students and engineers from around the world to attend the Institute. Between 25 and 35 students take the course each year. Without the government fellowship subsidies, the one-year, post-graduate Geothermal Diploma Course would cost about US$13,000 per student. Since its creation in 1979, the Institute has trained over 500 students from Asia, Latin America, Africa, and Europe.

NZAID executive director, Dr. Peter Adams, said it had negotiated "intensively" with the university since May over review findings which suggested that "on level of fees required, continued funding for the geothermal diploma course could not be justified". Dr. Adams said the agency would have been prepared to continue funding for the diploma while implications of the new policy directions were worked through - "had we been able to reach agreement with Auckland University over fees."

In 1975, the United Nations Development Programme (UNDP) asked New Zealand to provide geothermal training. Three years later UNDP, the New Zealand Government, and the University of Auckland set up the Geothermal Institute. The first Geothermal Diploma Course started in February 1979.

Apart from New Zealand , only Iceland, through the United Nations University Geothermal Training Program, offers subsidized geothermal training to students from developing countries. Japan's Geothermal Group Training Course, which ran from 1970-2001 at Kyushu University, was discontinued in 2002.


Companies Pledge $225 Million to Global GHG Emissions Research

ExxonMobil, General Electric, Schlumberger, and other private industry leaders plan to invest up to $225 million to fund Stanford University's Global Climate and Energy Project (G-CEP). Together, the participants will engage in research to develop technologies that foster the development of a global energy system where greenhouse gas (GHG) emissions are much lower than today.

ExxonMobil, the world's largest publicly traded petroleum and petrochemical company, plans to invest up to $100 million; General Electric, the world leader in power generation technology and services will invest $50 million; and Schlumberger, the global technology services company, will invest $25 million. E.ON, Europe's largest privately owned energy service provider, has signaled its intention to contribute $50 million and join G-CEP, along with other academic and corporate sponsors from Europe.

Lynn Orr, G-CEP Project Director
Lynn Orr, G-CEP Director

The G-CEP is an alliance of scientific researchers and leading companies in the private sector. Stanford University, as manager of the Project, will identify preeminent scientific researchers from around the world who will work with the private sector sponsors to conduct research into low greenhouse gas emission energy technologies of the future.

According to Lynn Orr, who will be G-CEP Project Director, a key objective of this initiative is to develop a portfolio of energy technologies that can be deployed on a global scale, in developed and developing economies.

While the G-CEP includes wind and solar as renewable energy sources of interest, it does not include geothermal. It does identify geoengineering as an area of interest.

For more information, see:


In Short


  • Geodynamics Limited is the only public company in Australia that is fully focused on Hot Dry Rock (HDR) geothermal energy. The Company's business plan is based on three stages: (1) Development of an underground heat exchanger; (2) Development of a demonstration HDR geothermal power plant (10-15 MWe), and (3) A commercial scale HDR geothermal power plant capable of generating hundreds of megawatts. The Company successfully raised $11.5 million (US$ 6.4 million) from its IPO in September 2002 , and together with its $5 million (US$ 2.8 million) R&D Start grant from AusIndustry to complete Stage 1. Stage 2 will require approximately $30 million (US$ 16.7 million). For more information, see the Geodynamics Business Plan.


  • North Pacific GeoPower Corp. announced the results of its 2001/2002 technical program carried out on the Meager Creek Geothermal Project on 19 November. The results provide strong evidence for the presence of a large, high temperature geothermal reservoir at relatively shallow depth. Three core holes—M-17 (1,186 m), M-18 (660 m), and M-19 (913 m)—recorded maximum temperatures of 197°C, 212°C, and 224°C, respectively. North Pacific GeoPower Corp. will conduct a confirmation well program next summer. When completed, Meager Creek will be Canada's first commercial geothermal power generating facility (Source: Canadian Corporate News, 19 November 2002).


  • China will use geothermal resources to heat, bathe, and refrigerate the Olympic Garden, one of the main venues for the 2008 Beijing Olympic Games. The government will spend $19.6 million dollars on the project which will heat 400,000 square meters of stadiums and gymnasiums. By 2008, 160 geothermal wells will be drilled in the city, according to the Sub-plan on Energy Development and Energy Mix Readjusting of the Beijing Games' Action Plan, drawn up in September. Beijing currently has 10 geothermal hot spots where water can reach over 50°C (Source: Xinhua News Agency, 19 November 2002)


  • The Indonesian government is negotiating with the Asian Development Bank (ADB) for a $160 million loan to fund the construction of ten small-scale hydro- and geothermal power projects. Under the Renewable Energy Development project (INO 34100-01), the projects may start in September 2003. The capacity of each of the planned power plants would be around 30 MWe. Priority will be given to projects in regions outside Java, e.g., North Sulawesi, Nusa Tenggara, and Kalimantan to make up for a shortage of energy supply. For more information, contact Mr. Hardiv H. Situmeang, Director of Planning, P.T. Perusahaan Listrik Negara, Tel: (62 21) 7261122, 7262234 ext. 1011, Fax: (62 21) 7396873; or Anil Terway, ADB Project Officer, Email (Source: Asia In Focus, 26 November).
  • The Indonesian Government and 11 independent power producers (IPPs), including the Gng Salak Geothermal Power Plant, have reached an agreement which is expected to mark the start of rapid development of power generating facilities in the country. Under the agreement, both sides agreed on what price would charged for power generated and supplied by the IPPs to PLN. The new price for power generated by the Gng Salak Geothermal Power Plant was reduced to 4.45¢ from 8.5¢. The government cancelled six projects which they considered not feasible (Source: Asia Pulse, 22 November).


  • BBC Monitoring Middle East reported on 22 November that Iran will build its first geothermal power plant in the northwestern Sabalan region of Ardebil Province. According to Yusef Armodlu, Director of the New Energies Organization, six wells are currently being drilled to depths of 3,500 meters. Deputy Energy Minister Hamid Chitchian said in April that the plant is being built in Meshkin Shahr and will have an installed capacity of 100 MWe (Payvand's Iran News). Geothermal exploration began in Iran in 1975. With average deep reservoir temperatures of 130°C-250°C, Meshkin Shahr has been identified as the best of prospects associated with Mount Sabalan (Fotouhi and Noorollahi, 2000; Bogie et al, 2000).


  • In remarks made at the 9th Annual Border Energy Forum held in Saltillo, Mexico on 24 October, Mexico's Energy Secretary Ernesto Martens said that his country wants to see develop its border with the United States into an "energy corridor" with pipelines and power lines running across the 2,000-mile international boundary to meet a growing demand in both countries. U.S. and Mexican business leaders and government officials met in Salitllo to discuss ways the two countries can work together to meet increasing electricity demands.


  • The International Emissions Trading Association (IETA)'s online Trading Scheme Database covers all known existing, planned, and proposed schemes for the trading of greenhouse gas emission allowances and reduction credits. The database was developed by Point Carbon. Founded in May 2000 by a group of Norwegian researchers and consultants, Point Carbon addresses the political, technological, and economic aspects of environmental politics and carbon permits, and provides focused information and analyses of key factors influencing the present value of carbon permits.

Southeast Europe

  • Energy ministers from several Southeast European counties signed a Memorandum of Understanding to create a regional electricity market in Athens, Greece on 15 November. With this memorandum, Albania, Bosnia-Herzegovina, Bulgaria, Croatia, FR Yugoslavia, FYR Macedonia, Greece, Romania, and Turkey pledged to move quickly forward with the transformation of their production and transmission companies into legally independent units. Once established, the regional market will provide better services at a lower cost to customers throughout the region. For more information, see the European Commission/World Bank Southeast Europe Reconstruction website.

United States

  • The U.S. Department of Energy's (DOE) Office of Energy Efficiency and Renewable Energy (EERE) released its strategic plan on 7 November. According to David Garman, DOE Assistant Secretary for EERE, the plan describes the office's response to Secretary Abraham's challenge to "leapfrog the status quo" and pursue "dramatic environmental benefits." It addresses the National Energy Policy and describes how EERE is incorporating President Bush's Management Agenda and the recommendations from the program review into the office's new way of doing business. One of EERE's specific goals is to increase the viability and deployment of renewable energy technologies, including geothermal. The EERE Strategic Plan is available in PDF format from EERE's website.
  • The Energy Information Administration (EIA), DOE's independent statistical and analytical agency, is working with the DOE Office of Energy Efficiency and Renewable Energy (EERE) to reconcile their respective renewable power facility databases. EIA maintains renewable data for its mandated, official surveys of utilities and non-utilities. EERE, in conjunction with the National Renewable Energy Laboratory, maintains the Renewable Electric Plant Information System (REPiS). Reconciling the data and pooling relevant information from the two databases should result in a more comprehensive frame for EIA as well as additional information for EERE. The geothermal power plant portion of the project has recently been completed. For more information, email Mark Gielecki, EIA.


Upcoming Events


January July
February August
March September
April October
May November
June December



2-6 December
Website: Secretarial Business Development Mission
Lima, Peru and Santiago, Chile
Secretary of Commerce Donald Evans will lead a senior-level business development mission to Lima, Peru and Santiago, Chile. The focus of the mission will be to help U.S. companies explore business opportunities in Peru, the Andean Region, and Chile. The delegation will include approximately 15 U.S.-based senior executives of small, medium, and large U.S. firms representing, but not limited to the following sectors: energy, services, machinery and equipment, information and communication technologies. The application deadline is 2 October.

3-4 December
Website: Carbon as a Commodity
Denver, CO
Sponsored by the Colorado Chapter of the Soil and Water Conservation Society, the technical training conference will address current policy on carbon in terms of storage (e.g., who stores it and where), the potential for sustainable and environmentally friendly storage, and other issues associated with carbon trading.

3-4 December
Website: Global Energy Finance Summit
New York, NY

4-6 December
Website: New Technologies for Small and Medium-Size Enterprise Finance
World Bank Global Conference
Washington, D.C.
Contact: Colleen Mascenik, Tel: (202) 473-7734, or Email

5 December
North American Development Bank (NADB)
Board of Directors Public Meeting
San Antonio, TX
Tel: (210) 231-8000
The purpose of this meeting is to provide an opportunity for a direct exchange of information about the Bank's projects, programs and processes with the NADB Board of Directors.

9-11 December
Website: Europe Regional Waste-to-Energy/Renewable Energy Sources Conference
Prague, Czech Republic
Tel: Michael Koeppen or David Elliott at Koeppen, Elliott & Associates, (202) 429-5245 or Email
This event will focus on projects that relate to the transformation of refuse products from many sources into usable resources, and the use of renewable sources to provide energy. The conference will cover opportunities in the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, and Slovenia.

11-13 December
Website: 13th National Energy Services Conference and Exposition
Presented by the Association of Energy Services Professionals International
Tucson, AZ


13-17 January
Website: Private Sector Session of the Second Annual U.S.-Sub-Saharan Africa Trade and Economic Cooperation Forum
Under the authorization of the African Growth and Opportunity Act (AGOA)
Port Louis, Mauritius
Sponsored by the American Chamber of Commerce in Mauritius, the Corporate Council on Africa, and the African Coalition for Trade, the Private Sector Session of the 2003 AGOA Forum will provide a unique venue for dialogue on economic and commercial issues with U.S. and African leaders. It will promote the expansion of trade and investment ties between the United States and Africa, enhance regional economic cooperation and integration, and facilitate contacts between African and U.S. companies.

15-17 January
Website: New and Emerging Technologies Conference
Organized by Touchstone Energy Cooperatives
Tucson, AZ

25-29 January
Website: American Society of Heating, Refrigerating and Air Conditioning Engineers (ASHRAE) Winter Meeting
Chicago, IL

27-29 January
Website: 28th Stanford Workshop on Geothermal Reservoir Engineering
Stanford, CA
The aims of the workshop are: To bring together engineers, scientists, and managers involved in geothermal reservoir studies and developments; To provide a forum for the exchange of ideas on the exploration, development, and use of geothermal resources; and To enable prompt and open reporting of progress.

27-30 January
Website: Project Finance Workshop
New York, NY

10-11 February
Website: Harvesting Clean Energy Conference III
Held in partnership with the 8th Annual Idaho Ag Summit
Boise, ID

20-23 February
Website: India International Clean Energy Expo 2003
Bangalore, India
The exposition will showcase clean energy technologies, products, and services for worldwide buyers and sellers; feature India as a leading destination for clean energy products, services, and technology; and highlight global and governmental clean energy policies and incentives.

26 February-5 March
Website: NRECA's 61st Annual Meeting
Nashville, TN

12-13 March
Email: 24th Annual PNOC-EDC Geothermal Conference
Manila, Makati City, Philippines

9-11 April
Eastern Africa Geothermal Energy Development Conference
Held in conjunction with KenGen Technical Conference
Nairobi, Kenya
Organized by the Business Council for Sustainable Energy (BCSE) and United Nations Environment Programme (UNEP)
Email: John Garrison, BCSE
Email: Tom Hamlin, UNEP
Why you should attend:
  • Gain access to in-depth information on geothermal energy project opportunities in Eastern Africa (Kenya, Tanzania, Zambia, Djibouti, Uganda, Ethiopia, Eritrea, Malawi and Rwanda);
  • Meet with personnel from East African energy ministries, utility companies, and geological institutes;
  • Hear from representatives of international finance agencies, African finance ministries, and project developers on innovative financing options for increasing geothermal development in Eastern Africa, and the roles and participation of host country governments;
  • Learn about the Geothermal Energy Development Fund (GeoFund), a new "risk-sharing" geothermal initiative for resource exploration being established by UNEP with the support of GEF, the German Development Bank, KfW, and others;
  • Hear from key Eastern Africa government agencies and leading international energy experts about the latest regulatory and policy reforms being implemented and steps needed to promote greater private sector geothermal development in the Rift Valley region; and
  • Visit the two Olkaria geothermal energy plants in operation.

Website: Distributed Energy Resources (DER) Regional Workshop
Los Angeles, CA
The primary focus of the workshop is to link Federal facility managers interested in installing DER projects with project developers, equipment manufacturers, and system designers.

7-9 May
Website: 23rd Annual Utility Energy Forum
Tahoe City, CA

14-16 May
Website: Energy and the Environment 2003
First International Conference on Sustainable Energy, Planning, and Technology in Relationship to the Environment
Halkidiki, Greece

25-29 May
Website: European Geothermal Conference (EGC) 2003
Szeged, Hungary
EGC 2003 is organized by the Hungarian Geothermal Association, the Romanian Geothermal Association, the Slovakian Geothermal Association, and select companies. The conference will include a technical program, an exhibition, field trips, and social events.

Scientific correspondence should be emailed to Dr. Franciska H. Karman The deadline for abstract submission is 30 November 2002; full papers are due 31 January 2003.

18-21 August
Website: Project Finance Workshop
New York, NY

20-22 August
Website: International Energy Program Evaluation Conference
Seattle, WA
Since 1984 the International Energy Program Evaluation Conference has represented excellence in the field of evaluating public and privately sponsored energy programs, products and services. Conference proceedings are routinely used to improve program performance or to support the design and development of new energy services.
The Conference Planning Committee is currently soliciting abstracts for papers, posters, panels and workshops for presentation at the 2003 Conference.

14-17 September
Website: International Geothermal Conference: "Multiple Integrated Use of Geothermal Resources"
Reykjavik, Iceland
The objectives of the IGC-2003 are to provide an international forum for the exchange of ideas, experiences, and knowledge relating to engineering, environmental, financial, and scientific issues of multiform geothermal development; to demonstrate the indisputable benefits that may be attained from integrated and multi-use of geothermal energy with respect to environmental, socioeconomic, and pure commercial considerations; and to identify barriers to widespread geothermal development, e.g., legal issues, risk, public attitude, and scarcity of funding, and their mitigation.

24-27 September
Website: Structures in the Continental Crust and Geothermal Resources
Siena, Italy
The meeting will promote a comparison among the different structural settings of geothermal systems in various parts of the world, and encourage a multi-disciplinary approach (e.g., rheology, magmatism, modeling, seismic, structural, geology, etc.) to the study of geothermal areas.

25 September-1 October
Email: SITH2003 / Société Internationale des Techniques Hydrothermales
Beppu, Japan

12-15 October
Geothermal Resources Council (GRC) 2003 Annual Meeting
Held in conjunction with the Comision Federal de Electricidad (CFE)
Morelia, Mexico
Contacts (email): Ted Clutter, Jim Combs, or Gerardo Hiriart

7-11 December
Website: Fourth International Conference on Fluid and Thermal Energy Conversion
Bali Island, Indonesia


20-28 August 2004
Website: 32nd International Geological Congress
Florence, Italy

5-10 September
Website: 19th World Energy Congress
Sydney, Australia

24-29 April 2005
Website: World Geothermal Congress 2005
Antalya, Turkey

To have your event listed, contact the Editor.


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