Geographical constraints (ie where you can access geothermal) means large conductive infrastructure must be invested in to carry the energy to markets. This is the big problem in Australia. Maybe not where population is more concentrated in other parts of the world. Petratherm has a unique niche with the BIG perennial mining market surrounding it. More broadly though, I see people wanting to invest in geothermal but I don't see many wanting to invest in the conductive infrastructure to get this energy to market. Same problem exists with nuclear plants, and this will need to be overcome in the future.
Actual energy costs are relatively acceptible with mining when you consider the energy packed in a kilogram of yellowcake relative to the energy expended to get it. Hell it takes around 50L of oil to fertilizer one tonne of wheat. And then you have the diesel, chemical, transport and manufacturing energy liabilities to account for as well. So this issue needs to be kept in perspective.
Am not against geothermal. How can you be with such a champion as Tim Flannery backing it in. The reality with our energy problem is there will be no one solution. It will need to be a more complex mix of all these alternatives. Fossil fuels made it easy. Good luck to the geothermers! Petratherm is performing well.
PTR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
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