TRUenergy to invest $57m in Petratherm's geothermal project Article from: The Advertiser
CAMERON ENGLAND
August 04, 2008 10:30am
PETRATHERM has received a large boost with TRUenergy committing to invest $57 million for a 30 per cent stake in its Paralana geothermal project.
Petratherm shares surged 17 per cent to 76c at 1200 AEST.
Adelaide-based Petratherm said Chinese-owned TRUenergy would initially contribute $6 million towards the drilling of two deep geothermal energy wells, for a 10 per cent stake in the project in the northern Flinders ranges.
It would then have the option to earn another 5 per cent by contributing $7 million towards the development of a 7.5 megawatt (MW) pilot plant, which would be able to supply power to the nearby Beverley uranium mine as early as mid-2010.
The final 15 per cent would be earned through the contribution of $44 million towards a 30MW demonstration plant.
TRUenergy supplies gas and electricity to 1.3 million homes and businesses in Victoria, South Australia and New South Wales and also generates electricity in SA and Victoria.
TRUenergy managing director Richard McIndoe said the company had committed close to $1 billion to expand its renewable and clean energy generation portfolio.
This included a $292 million development agreement with photovoltaic cell maker Solar Systems to develop a 154 MW solar electricity plant in Victoria.
"The strategy has been to look at what we consider to be the leading renewables companies in the marketplace to try and bring TRUenergy's marketing capability and other capabilities as a major energy generator and retailer to the table,'' Mr McIndoe said.
"We particularly like this project because not only is the technology really exciting in terms of future potential, but also the partners, Beach Petroleum, and what they bring to the table in terms of drilling capability and obviously Petratherm's own technical capability and the management team there make it a very strong and compelling investment case for us.''
Petratherm managing director Terry Kallis said the company had been looking for complementary business partners.
"That's what we have with Beach Petroleum sub-surface and basically getting us through to market with TRUenergy, through the generation, transmission and marketing into the national electricity market.
"All the key ingredients are right there for the project now.''
Last year Beach Petroleum committed up to $30 million to the Paralana project in return for a stake of up to 36 per cent.
The TRUenergy deal is dependent on Foreign Investment Review Board approval.
PTR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
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