Global:

Geothermal Fights Back (Environmental Finance)

(Courtesy Environmental Finance)

The geothermal sector suffered a big fall in financing last year, but a host of initiatives spearheaded by development banks are aiming to open investors' eyes to the technology's potential, especially in emerging markets.

Many renewables investors have shied away from the geothermal sector because of the risk of their investments going south if the wells come up empty.

But development banks and US government agencies that are bullish about the potential of geothermal – both as a source of clean energy and an economic development tool – are attempting to ease the financing crunch that has so far prevented the sector from reaching its potential.

“I’m bullish on geothermal,” said Sid Sinha, senior vice-president for investment bank Marathon Capital, which has served as financial advisor for several major geothermal transactions. “I think it’s a great resource when it’s understood correctly. The sector is ripe for investment.”

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