Mexico's CFE Awards Contract for Construction of Geothermal Power Station

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Researched by Industrial Info Resources (Sugar Land, Texas)--Mexico's Comision Federal de Electricidad SA de CV (CFE) (Mexico City) with Grupo Dragon (Mexico City) plans to construct a geothermal power station. The Cerritos Colorados geothermal power station will be located in the state of Jalisco's Primavera forest, which is about 12 kilometers southwest of the town of Zapopan. The total estimated value of this investment is about $90 million.

Grupo Dragon will develop and construct the power station. The company will construct and drill four production wells and three re-injection wells and will repair three existing wells to produce enough steam to drive a 25-megawatt (MW) condensing steam turbine-generator set and use flash steam technology to increase the site capacity and generate electricity from the earth's thermal energy. The CFE has forecast that this site has the potential to generate up to 75 MW in total. The station will help meet growing demand for electrical power in Mexico's western region.

Exploratory studies by the CFE consider the hot springs in this particular park to be a great potential source of geothermal power. The Primavera forest is an environmentally protected zone, and the Jalisco state government ordered the CFE to take care of the environment and restoration activities to any areas that were damaged by the drilling activities pertaining to the project.

The CFE is hoping to increase geothermal development and has recently received a special boost with its newly developed geothermal energy statute that permits increased international investment to help develop this natural resource. With this new development, Mexico hopes to reach its target of up to 35% of renewable energy capacity by 2024.

Construction is expected to begin in June 2018. The power station is scheduled for full operations by June 2020.

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