Kaishan Group and Transmark Renewables enter into JV Agreement for capacity expansion of the Gülpınar Project in Türkiye

Shanghai / Amsterdam

18 October 2022

TTG 3.2MW ORC unit 1 overview

In June 2021, under a 19 MWe (3.2 MWe + 15.8 MWe) power generation license, TTG achieved commercial operations of the first 3.2 MWe geothermal ORC unit supplied by Kaishan Group’s subsidiary OME Eurasia under an EPC agreement signed end 2019. With successful delivery of the project under the challenging circumstances of the global COVID19 pandemic, the parties built a strong relationship and appreciation of each other’s competences.

The 3.2 MWe ORC unit is fed with brine from one pumped production well and one injection well. The brine is kept under sufficient pressure in the resource gathering system to keep non-condensable gases (e.g. CO2) dissolved in the brine to ensure re-injection back into the reservoir and avoid release of such gases to atmosphere. A similar operational philosophy will be maintained for the expansion.

The JV agreement serves the purpose of co-financing the addition of 15.8 MWe capacity under the favorable legacy feed-in tariff of USD 105/MWh up to 31st December 2030. Under the agreement, Kaishan Group’s Singaporean subsidiary OME Eurasia will contribute up to US$21,000,000 equity to TTG in stages to acquire 49% of TTG’s shares upon satisfaction of conditions precedent.

TTG’s Field Development Plan for the 15.8 MWe expansion (the FDP) was reviewed by third-party consultants. For the expansion area it is stated that ‘the 90% cumulative probability estimate is 18 MWe of potentially recoverable heat in place for a 20-year project lifetime. The estimated median (50% cumulative probability) value is 27 MWe’. Furthermore, additional upside to the geothermal resource potential is inferred in excess of 80 MWe in adjacent areas.

The capital investment of the 15.8 MWe additional capacity, including five production wells and three injection wells, is budgeted at USD 58 Million. The existing teams of Transmark Renewables and TTG are responsible for subsurface engineering and interfacing, while Kaishan Group and OME Eurasia’s teams are responsible for the design, manufacturing, and installation of modular ORC power plants. The expansion is expected to reach commercial operation in 2024.

Kaishan Group Co., Ltd (Kaishan Group) is a compressor manufacturer and geothermal IPP listed on Shenzhen stock exchange. It is among the top four in terms of production and sales of compressors compared to international competitors. The group has specialist research and manufacturing centers in China, US and Austria. Through its geothermal energy development companies KS Orka and Open Mountain Energy (OME) and as modular geothermal power plants supplier, the group has delivered geothermal power projects into commercial operations with an installed capacity of approximately 170 MWe across three continents.

Transmark Renewables is a family-owned geothermal exploration & production company, with core competencies in subsurface related disciplines. Since 2010 it is actively exploring for- and developing geothermal energy projects in Chile and Türkiye, amongst others through its subsidiary Transmark Turkey Gülpınar (TTG) in the Çanakkale region in Türkiye.