I'm not sure what is behind the question as to whether GDY is wasting its time with extracting energy from hot rocks (providing water to be heated by dry hot rocks).
Two issues come to mind.
1.The risk that hot rock technology doesn't deliver economically viable energy. 2.Shallow aquifers are proven as a source of economically viable energy, so is spending money on hot rocks, an unproven technology, misguided?
My understanding of the answer to the question lies in the greater abundance of hot rock energy relative to that provided by shallow aquifers. I am happy to be corrected if I'm wrong. However, if I'm right and GDY is able to get hot rock technology to work, this puts them in the box seat as far as available resource is concerned.
I think that the underlying risk is built into the SP.
In retrospect, I feel that GDY should have pursued the shallow aquifer option first, and then used the resultant cash flow to follow their dream to make hot rocks work.
Just my opinion, derived from hindsight.
RNE Price at posting:
62.5¢ Sentiment: Hold Disclosure: Held
