US company signs LoI to invest ₹820 cr to produce geothermal power in U.P.

Lucknow: Though still in a nascent stage in India, geothermal energy (green power produced from the heat trapped in the earth’s crusts) may soon start being generated in Uttar Pradesh

Lucknow: Though still in a nascent stage in India, geothermal energy (green power produced from the heat trapped in the earth’s crusts) may soon start being generated in Uttar Pradesh. A foreign company has already signed a letter of intent with the state government ahead of the Global Investors’ Summit (GIS) here to invest ₹820 crore in the new technology.

Geothermal energy is a mature renewable energy technology that has a potential to provide clean and reliable energy for power generation and direct heating and cooling. (Pic for representation)

Officials dealing with the issue said that the Geothermal Core, the Texas (US) based company was among the companies that had together signed 269 letters of intent ( LoI) so far to invest in the renewable energy sector in UP.

“The Geothermal Core has signed LoI for investing ₹820 crore to produce geothermal energy in the state,” UPNEDA secretary, Neelam said. The concept, she said, was totally new to the state.

According to Sriram, the project officer, the company has shown interest in setting up geothermal plants in Jhansi, the region that it has found to be more suitable for production of geothermal power. “The company will conduct surveys at other places too,” he said.

Geothermal energy is a mature renewable energy technology that has a potential to provide clean and reliable energy for power generation and direct heating and cooling. To generate power through this source, water is pumped through borewells over heated rocks. The steam produced thus is strong enough to rotate turbines and produce electricity.

The maximum number of LoI signed as on January 30 (before the GIS that is scheduled to be held here on February 10,11 and 12) is for the renewable energy sector that has exceeded its target of investment proposals.

“The department has signed a total of 269 intents worth ₹346222 crore for various segments of renewable energy,” Neelam said. “The bioenergy has topped the chart with 156 of the total intents being for this segment alone, followed by solar (88), green hydrogen (11) geothermal (1) and others (13).”

NEDA director Anupam Shukla, in the meantime, will be holding a pre-GIS meeting with companies that have signed letters of intent or memorandum of understanding to invest in the renewable energy in the state, next week to listen to their issues and sort out the same.

Segment no of intents Amount (in cr)

Bioenergy 156 10485.82

Solar energy 88 181573.30

Green Hydrogen 11 150110

Geothermal 01 820