old technology rocks for steam power play

Posted by TheWhippet over on the GDY thread...

"Old technology rocks for steam power play

* CRITERION: Tim Boreham
* From: The Australian
* April 07, 2010 12:00AM

Panax Geothermal (PAX) 14c

A NICE plume of steam from Panax's geothermal project near Penola in SA suggests the hot-rock brigade is wasting its time by taking the harder road.

Panax reports "significant" steam from its Salamander-1 well, after recording temperatures of 130C at 3000 metres and 156C at 4000m.

Panax aims to build a 5.9 megawatt demo plant and then a 60MW commercial facility, thus becoming Australia's first grid-connected producer of emission-free, 24-hour base load power.

The vital distinction is that Panax draws its water from existing heated aquifers, which was groundbreaking technology -- in the 1920s. Most other listed geothermal plays are trying to perfect the unproven art of sending water down the earth's bowels and forcing it through fractured superheated rocks.

According to Panax chief Bertus de Graaf, the industry has been "fixated" on the hotter temperatures generated by hot rocks. "But if you can't get it out then it doesn't really help."

Panax's ongoing work includes converting a measured resource of 11,000 petajoules into reserves (1000PJ would power a 100MW station for 30 years).

On current carbon pricing, the economics of a full plant would be superior to that of a wind one. But the lack of a mandated carbon abatement scheme creates uncertainty.

Panax is a speculative buy. Others delving into conventional geothermal are Hot Rock (HRL), which neighbours Panax.

In Victoria, Greenearth Energy (GER) has raised the ire of the coastal hamlet of Gherang with plans to build a 140MW plant. But given proof-of-concept drilling is yet to take place, the naysayers need not worry in a hurry."

http://www.theaustralian.com.au/business/opinion/old-technology-rocks-for-steam-power-play/story-e6frg9lo-1225850664471