Colombia awards Parex Resources license for geothermal project

Parex Resources

09/01/2024 20:15

By Luis Jaime Acosta
       BOGOTA, Jan 9 (Reuters) - Colombia has awarded its
first-ever license for developing a geothermal energy project to
produce electricity to Canada's Parex Resources  PXT.TO ,
according to a government resolution seen by Reuters on Tuesday.
    Colombia has set its sights on developing renewable energy
sources - such as solar, wind and geothermal - as part of
President Gustavo Petro's goal to wean the major regional coal
and oil producer off its dependence on fossil fuels.
    However, the country has struggled to take certain projects
over the line, including onshore wind farms in the La Guajira
province, which have been met with resistance from local
Indigenous communities.     
    Geothermal power produces electricity by taking advantage of
the earth's heat. 
    "Parex, as the holder of the exploitation permit, will carry
out all activities at its own expense and risk and all the
necessary steps for the development of the project will be (the
company's) responsibility in accordance with the resolution,"
said the resolution, which was signed by Energy and Mines
Minister Andres Camacho. 
    Parex Resources did not immediately respond to requests for
comment. 
    The project is located in Colombia's Casanare province at a
site where Parex is currently undertaking an oil and gas
project, according to the resolution by the ministry of mines
and energy. 
    The project is expected to produce between 15 and 60
kilowatts of electricity, with potential to expand to 120
kilowatts, the document said, adding that the license will run
until September 2041. 
    The license follows an earlier geothermal pilot project
developed by Parex Resources elsewhere in Casanare in 2021. 
    The company must comply with all technical and environmental
requirements that are included in awarding the license, the
resolution added. 

 (Reporting by Luis Jaime Acosta 
Writing by Oliver Griffin
Editing by Leslie Adler)
 ((Oliver.Griffin@thomsonreuters.com; +57 304-583-8931;))