Colombia awards first-ever geothermal power project license

Colombia has awarded the first-ever license for a geothermal power project in the country to Canada-based company Parex Resources (Parex). According to official documents, the planned power generation capacity for the project will be between 15 to 60 kW, with the possibility of increasing up to 120 kW.  The license is valid until 2041.

Parex is an international oil and gas exploration and development firm and is currently the largest independent oil and gas producer in Colombia. Since 2021, Parex has been operating a small-scale 100 kW geothermal power generation unit in Campo Maracas in Casanare, which is thus far still the only geothermal power facility in operation in Colombia.

Local media reported that the new project will be developed in a 4.2-square kilometer area in the Casanare department within the municipalities of Mani and Aguazul. Parex is also undertaking an oil and gas project in this area.

Traditional oil and gas companies are shaping up to play a prominent role in developing the geothermal sector in Colombia. A notable example is the involvement of petroleum company Ecopetrol in at leas two potential geothermal sites – a 250-kW project in the Apiay oil complex in Meta, and a collaboration with Baker Hughes and CHEC for a geothermal feasibility study in Nereidas Valley.

Source: Reuters and MarketScreener