GEG and Kaishan Sign Framework Agreement for Geothermal Development and Implementation on GEG’s Projects

2021-06-30 Leave a message

On 21st Feb, GEG ehf. (hereinafter referred to as ‘GEG’) and Kaishan Group (hereinafter referred to as ‘Kaishan’) have signed a framework agreement in Kaishan’s Shanghai R&D Institute for services related to development, design, construction, operation and finance of geothermal projects owned or co-owned by GEG. Kaishan and its related parties will be acting as the preferred partner and vendor to provide the above services. Parties intend to collaborate on existing and future geothermal power generation projects of GEG in South America or Africa, including but not limited to Chile, East Africa and specifically the countries participating in the Global Risk Mitigation Facility (“GRMF”) of the African Union.

    GEG is an Iceland-headquartered geothermal development and consulting company. Pioneered in the ‘turn-key’ wellhead power concept, GEG built 15 wellhead plants (81MW) in Olkaria, Kenya from 2012 and one back pressure power plant in Iceland. Altogether GEG represented over 1.7% of the global installed new geothermal capacity between 2011 and 2020. Kaishan produces steam screw expanders, ORC screw expanders and ORC turbines (together as Kaishan’s modular plant) with inhouse patent and manufacturing capacity of key components. The advantage edge of Kaishan’s technology and equipment has been recognized by the industry in the last years.

    Both companies share similar ideology of geothermal development; they devote to easing the implementation process and making geothermal power an affordable renewable energy. With a decade’s practice, GEG recognizes the importance of multidisciplinary knowledge and expertise in project execution—also a challenge to a lot of the players—and intends to develop the ‘one-stop’ service to geothermal developers. GEG has knowhow in integrated project management with rich onsite experience, yet needs the support of manufacturing and supply chain management of much larger companies such as Kaishan that can provide fully comprehensive EPC. The collaboration is clearly a complementary one, where GEG may assist Kaishan to expand its footprint globally and accelerate its path to a mainstream geothermal power equipment supplier, and Kaishan modular plant’s high efficiency and availability coupling with fast-tracked delivery may facilitate GEG’s comprehensive competitiveness.

    GEG and Kaishan jointly commit to delivering energy-efficient, cost-effective, and accelerated-delivering geothermal development solutions to customers.