Zarubezhneft revises construction timeline for Kamchatka geothermal plant, targets launch no earlier than 2030
MOSCOW. March 24 (Interfax) - ZN Geotherm LLC, which is controlled by Zarubezhneft through subsidiary ZN Dobycha, has postponed construction of a geothermal combined heat and power plant in Kamchatka, according to explanatory notes to the company's 2024 financial report.
"Under the current concept, the geothermal power plant construction project is divided into two phases. Phase 1 - geological exploration of geothermal resources at three licensed sites (estimated timeframe 2023-2029); Phase 2 - construction of energy facilities for electricity and heat production (estimated timeframe 2029-2030)," the notes said.
Previously, in notes to its 2023 report, the company said it planned to build the geothermal plant between 2026-2028, with phased commissioning expected from 2028-2034.
According to the new document, ZN Geotherm is currently in phase 1 of project implementation. Given limited geological data and unconfirmed geothermal reserves, the company plans to drill three exploratory wells during 2025-2027 at the Koryaksko-Ketkinsky, Verkhnezhirovsky and Bolshoi-Banny sites to obtain geological data necessary for decisions on Kamchatka's heating supply development. Following exploration results in 2028-2029, the most promising site will be selected for power plant construction. The company no longer references the previously used plant name of Verkhnezhirovskaya.
"Taxable profit from sales revenue will only become possible in 2031, after completing construction and commissioning the first geothermal plant, plus securing heat and/or electricity supply contracts," it said.
The Koryaksko-Ketkinsky, Verkhnezhirovsky and Bolshoi-Banny sites are priority areas for ZN Geotherm (the company manages seven sites in total in Kamchatka), as they're located within 100 km of the regional capital. According to the state geological survey registry, the company conducted electrical prospecting surveys at these sites during 2023-2024.
ZN Geotherm is Zarubezhneft group's long-term investment project for developing Russia's geothermal energy sector. The company was registered on January 10, 2023 with a charter capital of 10,000 rubles. Its primary activity involves geological, geophysical and geochemical surveys for mineral resource exploration. The company reported 47.65 million rubles in accumulated losses for 2023-2024.
In July 2024, the company established another entity in Yelizovo (Kamchatka Territory), Geothermal Energy LLC, to implement renewable energy projects.
