As a follower of both CKK and some of the ASX geothermals, it has been interesting to see CKK move away from a geothermal focus for the GT3000 into being mainly oil and gas focused.
CKK understandably don't want to limit themselves to one part of the market when there seem to be so many drilling opportunities in different sectors (if WS's comments to deBono are anything to go by).
Thinking of the idea of a JV project between CKK and one of the geothermals, say Kuth, Petratherm or Panax, this would seem to fit with the 'intent' of the government's funding plan. From reading the Clean Energy Future website:
'ARENA will provide early-stage grants and financing assistance for projects that strengthen renewable energy and energy efficiency technologies and make them more cost competitive. '
'The Clean Energy Finance Corporation will invest in the commercialisation and deployment of renewable energy, energy efficiency and low-pollution technologies. It will also invest in manufacturing businesses that provide inputs for these sectors; for example, manufacturing wind turbine blades.'
So it would seem that both funding streams, ARENA and CEFC would have some hope of fitting with CKK for building rigs for geothermal drilling. If CKK is also taking oil and gas contracts, perhaps as CKK expands to have say 3 rigs by late 2012 or early 2013, a 'green' subsidiary could be created and 1 or 2 rigs could be allocated to geothermal in order to be smiled upon more kindly by the government agencies. Maybe a JV would not be needed. Fund the rigs, fund the drilling.
Investing in CKK would seem to be a win-win and an easy sell to the gov't- supporting a part of the 'green' manufacturing jobs boom in its early stages, in CKK, and bringing down the cost of one of our biggest potential clean energy sources, with export earning potential in both sectors down the track.
2012-13 is when the money starts to come on line so the timing could fit well with CKK's rig fleet expansion plans. Of course there is a big political risk attached and that is why I don't blame CKK for going into minerals, oil and gas initially. The geothermals are cash-poor and burning cash constantly with no revenue yet. But if the geothermal part of the rig expansion could be financed by the gov't over the next two years, it could be a win for CKK, the environment and the country.
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As a follower of both CKK and some of the ASX geothermals, it...
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