Paris La Défense, 26 January 2021
Albioma enters the geothermal energy business with the acquisition of the 13 MW Gümüşköy power plant in Turkey
Albioma has completed the acquisition of a majority stake (75%) in the geothermal energy producer Gümüşköy (in the Izmir region); the remaining 25% has been acquired by Egesim, an industrial services provider well regarded within the industry in Turkey.
This is the Group's first geothermal power plant.
The acquisition gives Albioma a bridgehead in a new business characterised by significant technical added value, offering a strong fit with the Group's well-established biomass and solar energy businesses. This investment diversifies the Group's production mix and is fully consistent with the strategic approach announced by Albioma, which aims to increase the proportion of renewable energy in its mix to between 95% and 100% by 2030.
Geothermal power plants extract heat from below the earth's surface and convert it to electricity. This locally-produced, economically competitive energy source is available on a 24/7 basis. Like biomass, geothermal energy production is controllable, which enhances the dependability of electrical networks and facilitates the development of other, intermittent energy sources such as solar power.
The Gümüşköy power plant in Turkey
With an installed capacity approaching more than 1,600 MW, Turkey ranks fourth in the world for installed geothermal capacity, with considerable potential for future development.
Commissioned in 2013 with a gross capacity of 13 MW, the Gümüşköy power plant uses heat from four production shafts to generate electricity under the terms of an operating licence valid until 2040 (with scope to extend for an additional 10-year period).
The plant currently exports up to 45 GWh of renewable electricity to the grid annually, with a dollarised feed-in tariff of approximately USD 105/MWh, valid until 2023. Working with the existing personnel retained by Albioma, improvement works will be carried out at the facility, to increase output.
Frédéric Moyne, Albioma's Chairman and Chief Executive Officer, explains: "We are delighted to announce the acquisition of the Gümüşköy power plant, giving the Group an opportunity to develop a new, highly industrial business in geothermal energy. This initial project in partnership with a recognised local player gives us an opportunity to rapidly develop our expertise in this business while keeping capital investment to a reasonable level. We will be able to capitalise on this know-how in the coming years. Today's announcement highlights Albioma's dynamic growth and considerable expertise in the area of renewable energy projects. I would like to thank the Group's development teams, which demonstrated remarkable commitment in finalising this deal despite the challenging circumstances associated with the global health emergency. ”
Next on the agenda: annual results for the 2020 financial year, on 4 March 2021 (before trading).
An independent renewable energy producer, Albioma is committed to the energy transition thanks to biomass and photovoltaics.
Albioma is listed on the Euronext Paris compartment B, is eligible for the deferred settlement service (SRD), PEA and PEA-PME plans and is included in the SBF 120 and CAC Mid 60.