Project detail - POLARIS ENERGY NICARAGUA S.A

POLARIS ENERGY NICARAGUA S.A

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Who is our client

Polaris Energy Nicaragua S.A. (PENSA) owns the San Jacinto Tizate geothermal concession covering a 40 km2 area near León, Nicaragua. This area is estimated to have a geothermal resource of more than 200 MW capacity.

Funding objective

FMO's investment will fund the development and construction of a geothermal power plant. The two-phased 72 MW San Jacinto Tizate Geothermal Project is located in the vicinity of several young active volcanoes.

Why we fund this project

Nicaragua is highly dependent on expensive fossil fuels, which contribute to greenhouse gasses and have resulted in a structural balance of payment deficit for the country. The project aims to offset more than 350,000 ton of CO2 equivalents per year. Moreover, geothermal energy provides a clean source of energy for the base load of the country. FMO provides much needed long-term funding in order to increase Nicaragua’s energy supply to reduce power outages.

More investments

Date Total FMO financing
11/11/2021 USD 45.00 MLN
Region
Latin America & The Caribbean
Country
Nicaragua
Sector
Energy
Signing date
8/10/2011
Total FMO financing
USD 8.00 MLN
Fund
Building Prospects
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B+