KCAER made a statement on Kocaer Energy's investment in geothermal power plant

In the statement dated November 21, 2023, it was stated that with the realization of the investment, Kocaer Çelik is expected to meet all of its current electricity needs with its rooftop SPPs, and the remaining 80% is planned to be sold in US dollars within the scope of the Electricity Market Renewable Energy Resources Support Mechanism for 15 years;

The statement is as follows;

"In our material event disclosure dated 25.05.2023, we have shared with the public that we have decided to conduct a feasibility study for the investment of a geothermal power plant with a power of 24 MW as the first phase in the geothermal license area located in Horsunlu-Ortakçı Village, Kuyucak District, Aydın province, belonging to Kocaer Enerji, in which we have 99 percent participation.

Seismic and MT data obtained as a result of the feasibility studies support the investments we will make in the license area. In parallel with this data, with the decision of our Board of Directors dated 21.11.2023, it was decided to start drilling activities. It is planned to invest in a 24 MW geothermal power plant with the wells to be drilled in Phase 1 of the investment. Within the scope of the hybrid solar energy license, a solar power plant investment is also designed as a second energy source for the internal consumption of the geothermal power plant. After this capacity, approximately 20% of the electricity we will generate is expected to meet the entire current electricity demand of Kocaer Çelik together with the rooftop SPPs, while the remaining 80% is planned to be sold in USD within the scope of the Electricity Market Renewable Energy Resources Support Mechanism (YEKDEM) for 15 years.

Other phases of the investments will be started in parallel with the further studies to be obtained.

With this ESG ("Environmental, Social and Corporate Governance") focused investment in the field of sustainable energy investments, we aim to significantly increase our electricity generation capacity and reach a diversified and strong portfolio in terms of renewable resources in the energy sector, which we have chosen as a strategic growth area, in order to strengthen our position as a leading green production company in the iron and steel industry.

It is respectfully announced to the public."