FRANCES STEWARTNovember 27, 2007 12:15pmGEOTHERMAL energy...

FRANCES STEWART
November 27, 2007 12:15pm
GEOTHERMAL energy company Green Rock is negotiating to supply BHP Billiton's Olympic Dam mine with electricity.

With five geothermal exploration permits in the Spencer Gulf area, the company recently drilled a 1.97km-deep well which showed the project was viable.

The company is planning to develop a series of hot-rock geothermal power stations to cater to increasing demand for electricity in a region that is a considerable distance from centralised power plants.

Executive director Alan Knights said he was pleased with the results of initial drilling.

``We still have to prove that we can get the water circulating,'' he said. ``But we're confident that the project will proceed as planned at this point.''

Mr Knights believes the Green Rock project will be able to secure the electricity market in the region, but could face competition for investment.

``I don't think there will be competition for the electricity,'' he said. ``The competition may come from other areas, particularly in securing risk capital early on in the project.''

The high voltage transmission lines required to connect a power plant to the grid would have been a significant cost, but because the site is located within 10km of the power grid the company would be able to use existing infrastructure.