GCIGetech and Eavor join forces to identify geothermal sites in Latin America
( ), a geoenergy and green hydrogen company, announced a new partnership with Eavor Technology to jointly evaluate geothermal energy projects.
The agreement will see the two companies work together to "locate and de-risk" multiple closed-loop geothermal projects for development across Latin America. Getech will deploy its geoscience and magnetics tools as well as its proprietary Heat Seeker software. In turn, Eavor will utilise its closed-loop geothermal energy production system "Eavor-Loop" and other proprietary technology for locating and qualifying locations for geothermal production.
The companies will prioritise locations where multiple closed-loops can be deployed to allow for rapid scale-up and lower cost. Getech said the two parties would retain commercial optionality to either realise asset value pre-development through farm-down/sale to a 3rd party or to proceed as development investors.
Dr Jonathan Copus, Getech CEO, commented:
"This exciting agreement with Eavor is an important first step in building Getech's global geothermal asset portfolio. By integrating our geoscience data and geospatial/economic modelling skills with Eavor's development technology, it will be possible to establish geothermal development assets of significant scale."
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This is a mutually beneficial partnership for Getech and Eavor to leverage their complimentary technologies and accelerate location and development of geothermal assets in Latin America. By prioritising sites with multiple closed-loops opportunities, the companies can fast-track new assets through commercial and technical feasibility and licensing.
There is additional value in the deal as the companies will retain the flexibility to sell the discoveries to 3rd party developers or participate in development themselves.
Geothermal energy represents a significant growth opportunity for Latin America and the Caribbean, with the Inter-American Development Bank noting geothermal potential in the region between 55GW and 70GW, most of which remains unharnessed.
The region has inherent strong heat-flow potential and rapidly growing green energy demand. Getech said it would utilise its geospatial and economic modelling technology to locate and quantify increasing aboveground demand. It would then plug the data into its geoscience/heat flow models and spatial analysis software, to find the best development path.
In September, Getech announced in an interim update an 11% increase in revenue to £2.7m and a 118% increase in orderbook value to £4.8m year-on-year. The company has strong visibility in revenue generation, with £1.6m of its orderbook expected to convert in FY23.
With a robust cash position of £4.3m on 30 June 2022 (plus £2.4m of receivables invoiced post-period), growing orderbook value, and an ambitious development schedule, Getech is so far set to reach its goal of establishing 500MW of green hydrogen assets in the UK by 2030.
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