Alterra Power Corp. completed a joint venture agreement with Energy Development Corp. (EDC) for the development of Alterra’s Mariposa geothermal power project in Chile plus three geothermal concessions held by Alterra in Peru.
The agreement calls for EDC to earn a 70 percent interest by funding 100 percent of the next $58.3 million in project expenditures at Mariposa, and $8 million in project expenditures on the Peruvian concessions.
Advancement of individual projects will occur under separate shareholder agreements that will follow the commercial terms of the joint venture agreement. Such agreements are expected to be executed later in 2013 subject to final documentation and project evaluation by EDC.
The Mariposa geothermal power project is located about 185 miles south of Santiago, Chile. It is comprised of the Laguna del Maule and Pellado concessions, which total 257,000 acres and completely encompass a geothermal system that has an inferred estimate of 320 MW.
Alterra has conducted extensive exploration and infrastructure work at Mariposa, including three slim-hole wells and a 16 miles access road. Alterra also has early-stage geothermal projects in the southern volcanic belt of Peru. Initial indications and Alterra’s exploration activities to date have supported the presence of large geothermal resources.
EDC is a Philippines-based geothermal energy company with an operating portfolio of 11 geothermal power plants and two hydro facilities totals 1,262 MW of capacity and produced over 3,600 GWh in the first half of 2012. EDC has been actively expanding its project portfolio to Indonesia, Peru and Chile.