Mexico issues three geothermal exploration permits for Engie and Reykjavik Geothermal

Mexico is expanding its geothermal market to the private sector with a recent issuing of exploration permits for global energy companies. Mexico’s Ministry of Energy (SENER) has issued three exploration permits to ENGIE, a global energy company, and Reykjavik Geothermal, an Icelandic geothermal development company. These permits authorise their holders to spend three years exploring geothermal resources located in three zones, each measuring 150 km2, in Sangangüey (in the state of Nayarit) and in Cerro Pinto and Las Derrumbadas (in the state of Puebla).

ENGIE, primarily through its subsidiary Storengy, and Reykjavik Geothermal are convinced that geothermal energy is destined to play a major role in Mexico’s energy mix. To make geothermal energy all the more competitive, these companies are working on a full reflection of the geothermal sustainable and baseload values in the pricing.

“We are very confident regarding the potential of those areas, in order to develop carbon-free projects, which are at the heart of our strategy” stated Cécile Prévieu, CEO of Storengy.

“With these three licenses granted, Reykjavik Geothermal reinforces its position in the Mexican geothermal market” underlined CEO of Reykjavik Geothermal Gudmundur Thoroddsson.

Efrain Villanueva Arcos, General Director of Clean Energies of SENER has stated: “Granting these exploration permits to a partnership between France and Iceland marks a major step in the implementation of the geothermal energy reform since they are the first 100% foreign capital companies to invest in the Mexican geothermal industry.”