Burisma Holdings joins Italian Geothermal Network RETE Geotermica

30 March 2015

Burisma Holdings, the largest independent Ukrainian gas producer was the first Ukrainian company to join Italian Geothermal Energy Network RETE Geotermica as a partner and member. The Board Advisor at Burisma Holdings Vadym Pozharskyi and RETE Geotermica CEO Batini Fausto signed the correspondent MOU in Rome. Thus, the Italian RETE Geotermica became third national specialized company for geothermal energy, where Burisma Holdings was recognized as a member. Prior to that, Burisma Holdings has already joined Bundesverband Geothermie eV (BVG), the largest European geothermal association, with headquarters in Berlin, as well as Geothermal Energy Association (GEA), the leading US global geothermal trade organization.

“The fact that we are a member of three world’s largest associations indicates that for the first time ever Ukraine declared its desire to work together to change the global environmental standards and ways of thinking, encouraging transition from conventional to alternative energy sources – renewable and environmentally friendly resources. Above all, we are talking about new innovative projects in geothermal energy sector, “- noted Adviser to the Board of Directors at Burisma Holdings Vadym Pozharskyi. Among other things, acting on par with leading geothermal associations will surely grant Ukraine access to world’s latest industry technologies and allow it to participate in joint projects.

“It means a lot to us that Italy welcomed Burisma Holdings, since it was the first country to produce geothermal energy for industrial purposes, and still is one of the world’s main geothermal electricity producers,” – said Burisma Holdings’ Board Advisor Vadym Pozharskyi.

More than a hundred years ago, on July 4, 1904, in the Tuscan town of Larderello, five lamps were lit by converting power from the ground into electricity. Today, Italy has 34 geothermal power plants producing 769 MW with project capacity of up to 5 TW per year. It already covers 26% of regional industrial electricity needs and more than 2 million Italian families get electricity through the development of Earth’ s natural heat.

Italian state policy and expertise when it comes to energy independence can be a vivid example for the present day Ukraine to follow. With 90% of energy imports, Italy in the 20th century just like Ukraine today, used to be one of the largest energy importers in the world. It was very common that 50% of all energy needs were covered by imported coal, when only hydroelectric power stations were used domestically. Only in 1950, after the discovery of gas fields, dependence on coal imports in Italy decreased. However, the need to increase electricity consumption, due to the growth of industrial production in the postwar years, did not significantly reduce dependence on imported energy resources. The turning point was the 70s oil crisis, when a sharp rise in oil prices on global markets made it reduce imports due to increased use of gas in the energy sector – both imported and domestic. The peak of geothermal development in Italy occurred in 2003, and meant to make up for the shortage of energy resources. The industry received large investments. Annual subsidies for geothermal energy at that time were world’s largest, amounting to Euro 10 billion per year. This allowed the country to ensure its energy security.

Burisma Holdings is also seeking to strengthen its role in the global scenario of alternative energy development, with new technology initiatives to be taken both in Ukraine and abroad.