Albioma has completed the acquisition of a majority stake (75 per cent) in the geothermal energy producer Gümüşköy. The remaining 25 per cent has been acquired by Egesim, an industrial services provider. This is the Albioma’s first geothermal power plant. The investment diversifies the company’s production mix and is in line with its aim to increase the proportion of renewable energy in its mix to 95-100 per cent by 2030.

With an installed capacity approaching more than 1,600 MW, Turkey ranks fourth in the world for installed geothermal capacity. Commissioned in 2013 with a gross capacity of 13 MW, the Gümüşköy power plant uses heat from four production shafts to generate electricity under the terms of an operating licence valid until 2040 (with scope to extend for an additional 10-year period).

The plant currently exports up to 45 GWh of renewable electricity to the grid annually, with a feed-in tariff of approximately USD 105/MWh, valid until 2023. Working with the existing personnel retained by Albioma, improvement works will be carried out at the facility, to increase output.

Frédéric Moyne, Albioma’s Chairman and Chief Executive Officer, said, “We are delighted to announce the acquisition of the Gümüşköy power plant, giving the Group an opportunity to develop a new, highly industrial business in geothermal energy. This initial project in partnership with a recognised local player gives us an opportunity to rapidly develop our expertise in this business while keeping capital investment to a reasonable level. We will be able to capitalise on this know-how in the coming years. Today’s announcement highlights Albioma’s dynamic growth and considerable expertise in the area of renewable energy projects. I would like to thank the Group’s development teams, which demonstrated remarkable commitment in finalising this deal despite the challenging circumstances associated with the global health emergency.”