ADELAIDE's Petratherm has expanded its international portfolio by securing a project in Spain's Canary Islands.
The geothermal-energy company said yesterday it had been granted a geothermal exploration licence on Tenerife, one of the seven volcanic islands off the African coast.
It would target traditional or "wet" geothermal-energy sources about 2km underground whereas Petratherm's Paralana project in South Australia is aimed at circulating water down to 4km in dry rocks.
Managing director Terry Kallis said the Canary Islands, which has a population of 1,500,000, lay atop "super-hot volcanic structures at relatively shallow depth".
"Very high temperatures of over 300 degrees celsius at relatively shallow depths of around 2km are often found in active volcanic geological settings analogous to those of the newly acquired Tenerife project area," he said.
"Significantly, Tenerife has substantial transmission infrastructure within close proximity of our geothermal exploration licence which would enhance the economics of any development and generate much needed energy capacity in the Canary Islands region. The Tenerife Project also provides a major opportunity to service an attractive market that is focused on the development of sustainable energy alternatives."
Mr Kallis said the project was expected to be lower-cost and lower-risk than the SA project as it would use a proven process for heat extraction and conversion to electricity.
The Tenerife project adds to existing Petratherm projects near Madrid and Barcelona on mainland Spain.
"Our strategy is to continue a geothermal evaluation program throughout the European Union but with a particular focus on Spain," Mr Kallis said.
"As a result of this ongoing focus, we do anticipate that our Spanish geothermal portfolio will increase to around seven or eight projects in the near term."
Petratherm shares reacted positively to the news yesterday, adding 19c to $1.19.
PTR Price at posting:
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