The Mariposa geothermal power project is located approximately 300km south of Santiago, Chile. It is comprised of the Laguna del Maule and Pellado concessions, which total 104,000 hectares and completely encompass a geothermal system that has an inferred estimate of 320MW.

Canadian company Alterra said it has conducted extensive exploration and infrastructure work at Mariposa, including three slim-hole wells and a 26km access road. The company also has early-stage geothermal projects in the southern volcanic belt of Peru, where it said initial indications and the company's exploration activities support the presence of large geothermal resources.

Alterra said the agreement calls for EDC to earn a 70% interest by funding 100% of the next $58.3mn in project expenditures at Mariposa, and $8mn in project expenditures on the Peruvian concessions.

Advancement of individual projects will occur under separate shareholder agreements which will follow the commercial terms of the joint venture agreement, said Alterra. Such agreements are expected to be executed later in 2013 subject to final documentation and project evaluation by EDC.

More countries throughout the world are set to embrace geothermal with others having significant potential to do so a 2012 Geothermal Energy Association (GEA) report revealed.