Australian geothermal energy company Petratherm has entered into a cooperative agreement with the Spanish federal government and the Madrid regional government to progress its 8 MW Madrid geothermal district heating (GDH) project.
The agreement will see a committee formed with members from both governments and Petratherm that will work toward making the project viable.
The committee will now work on an agreement with customers for the supply of heat, and an assessment of potential subsidy and financing options available, among other functions.
It will be backed by a €87,000 (A$150,000) contribution from the Spain’s federal government toward a feasibility study.
The Madrid GDH project has been highlighted as one of six renewable energy projects of interest within the Madrid regional government’s Renewable Energy Cluster Project, which is seeking to advance renewable energy projects in the Madrid region.
Terry Kallis, Petratherm’s managing director said: ‘This agreement reflects a strong desire by Spanish authorities to realize a working example of a geothermal district heating project in the Madrid region.’