GT Energy appoints Turquoise International to raise funds for five geothermal projects
GT Energy, a pioneer in geothermal energy production, has appointed Turquoise International (“Turquoise”) to advise the company on its corporate fundraising activities.
Corporate finance advisory firm Turquoise will assist GT Energy in raising capital for five geothermal projects planned in partnership with E.ON UK, one of the UK’s leading power and gas companies.
Turquoise will work with GT Energy to launch a new round of fundraising in September as the geothermal company prepares to break ground on its first UK project located in Manchester. The fundraiser aims to raise £2.6m which will allow GT Energy to carry out detailed geological survey work for its Manchester project while enabling GT Energy to expand its operations and acquire additional sites of interest.
Geothermal potential remains underdeveloped in the UK and Ireland when compared with other European countries, such as Italy, France and Germany. The German geothermal sector alone represents a €4bn industry, and is set to triple in size by 2014 according to the European Geothermal Energy Council.
GT Energy aims to replicate the successful German approach in the UK and Ireland. With plans to develop 500MW of capacity, the company has set itself a strategic goal of becoming the UK’s primary provider of renewable heat energy.
Scientific studies suggest that the UK is sitting on 100 gigawatts of geothermal potential, up to four per cent of which could be readily accessed by 2030*. The resulting 4GW capacity would be equivalent to 25 per cent of the UK’s 2020 target for renewable energy generation.
Padraig Hanly, managing director of GT Energy, said: “As we expand our commercial activities across the UK, we are delighted to be working with Turquoise, who have previous experience of raising equity successfully for a similar project in Germany. We are now poised to bring this exciting technology to the UK, where it has an important role to fulfil in the nation’s renewable energy mix.”
A more extensive fundraising campaign is also planned for the summer of 2013 where Turquoise will be working with GT Energy to raise additional capital to complete the construction of the Manchester project.
Francis Wright, Director and Co-Founder of Turquoise, said: “We have been interested in the deep geothermal market for some time and are excited to be working with GT Energy as they bring experience from the successful German geothermal market to the UK and Ireland. We expect to see significant growth in the geothermal heat market over the coming years and believe that GT Energy, with its strong management team and partnership with E.ON, is extremely well placed to play a leading role.”
The UK government is an active supporter of geothermal expansion, through its Renewable Heat Incentive (RHI) programme. Administered by the UK’s Department of Energy & Climate Change (DECC), the RHI scheme can draw on funds of £70m during 2012/13 to support the development of renewable heat projects like those planned by GT Energy and E.ON.
Energy and Climate Change Minister Greg Barker said: “I was delighted to hear about the launch of this exciting scheme in Manchester, and GT Energy and E.ON’s plans for further projects to develop heat networks supplied with deep geothermal heat. This is exactly the sort of innovative green project we want to see sprouting up across the country. This builds on the Coalition’s ambitious heat strategy published in March, and I wish the project every success.”