Mexico's National Water Commission (Conagua) has awarded a 30-year concession to Dragon Group for the use and exploitation of geothermal resources in Mexico. The firm got the contract through its subsidiary for the project, Geothermal Energy Development (Geodesa), which is a subsidiary of Grupo Salinas.
The company has been authorized to produce up to 52 MW for a project in San Pedro Lagunillas, Nayarit and drill up to 18 wells between 3000-3500 meters in depth.
The project has an estimated investment of 2,600 million pesos (US$160 million) and it will be divided into 2 stages of 25 MW each. The completion of the first phase is expected in 2016.
Jose Pablo Fernandez, CEO of Dragon Group said to local newspapers that the company will be exempt from paying water rights because “they will reinject up to 84% of the 43.8 million cubic meters of water to be used annually”.
Mexico's total geothermal energy potential is estimated at up to 13.4 GW. The country aims to reach the third position in geothermal energy capacity behind the United States and Philippines.