Turcas Kuyucak Geothermal Power Generation

The Construction of 18 MW Geothermal Energy Plant in Aydın

Turcas Kuyucak Geothermal Power Generation obtained a power generation license for 18 MW installed capacity in 2016. The power generation project accelerated after the final investment decision.

The first production well drilling and short-term well-flow tests were completed in November 2014 in the village of Yöre, Kuyucak district, Aydın province, an area covered by the operation license. To boost the number of production well drillings in response to the uncovered potential, the Company successfully completed the drilling of the second, third, and fourth production wells in December 2014-November 2015; the fifth production well and the first reinjection well in September-October 2016; the second reinjection well in November-December 2016; and the sixth production well in early 2017. As a result, the Company was granted a power production license for 18 MW in the first phase. Turcas Energy Holding is a 92% owner of Turcas Kuyucak Geothermal Power Generation.

On March 1, 2016, TKJ signed a 14-year financing agreement with Türkiye Sınai Kalkınma Bankası A.Ş. (“TSKB”) with an interest-only payment period of up to 30 months. The arrangement consists of EUR 15 million and USD 40.5 million in cash and/or non-cash loans and TL 10 million in non-cash loans. The lending facility will be used to finance the USD 71.25 million (including financing costs) Kuyucak geothermal power plant investment.

The production potential was determined and the first phase production module was ordered in 2016. Construction is moving forward at full speed.

This investment is expected to commence commercial operation in fourth quarter 2017.