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Summary
Eavor is pleased to announce Enex Power Germany GmbH (“Enex”) and Eavor Technologies Inc. (“Eavor”) have entered into a letter of intent to form a geothermal project development company to construct Eavor-Loop™ heat and power projects within Enex’s existing geothermal license area in Bavaria, Germany.
Under the arrangement, Enex will contribute existing geothermal assets to the new development entity, including:
- rights to utilize Enex’s existing geothermal lease for the development of Eavor-Loops;
- an existing surface lease and drill pad strategically located in an industrial development zone;
- access rights for the interconnection and delivery of electricity to the local distribution grid;
- an opportunity to potentially sell heat produced by the project to the town of Geretsried for district heating.
Additionally, Enex will continue to provide certain management and project continuity services, based on their local relationships and knowledge obtained over the last 10 years conducting their own local geothermal activities.
Electricity produced by the project will be eligible for payments under the German EEG 2017 Act. The EEG is a form of Feed In Tariff under which the German government augments the electricity price received for a period of 20 years from the date the project is first commissioned. Based on a 2022 commissioning date, the EEG payment will result in a fixed power price of €227/MWh (approx. CAD $344/MWh) until 2042.
Eavor and Enex have been working on the arrangement since January. Front end engineering and design (FEED) of the Project is expected to be completed this summer. Pending regulatory approvals and project financing, construction is planned to commence in early 2021.
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