KEN (ASX) interesting pieces from the annual report

Interesting pieces from the Annual Report

Moving Forward
KUTh Energy’s core capabilities reside in geothermal
exploration and project development. We maintain
collaborative partnerships with key players along
the geothermal value chain to ensure a focused and
appropriately skilled approach to our exploration
and development activities. We continue to build a
small but expert in-house team to strengthen our
unique knowledge base and ensure a sustainable and
scientific approach to our development programs.
KUTh Energy has made significant progress over the
past year and is now moving to its next phase of
development both from a project and organisational
perspective, with sights firmly set on commercialising
baseload emissions-free power.

Tasmania
On a very positive note I am writing this review on
the back of our 14 July 2009 announcement to the
ASX that KUTh Energy has identified an Inferred
Geothermal Resource of 260,000 Petajoules within
its Tasmanian tenement. This is a major milestone
towards our company’s goal of geothermal power
production in Tasmania. The next step will be to
confirm and better define the target resource
through deep drilling.
This resource offers exciting opportunities for
Tasmania and the broader Australian economy. In
Tasmania, geothermal would provide baseload
power to the existing hydro and wind installations,
giving the state the opportunity to become a
100% renewable power generator — a showcase
for the world. Another important feature of our
resouce is the potential scale. Just 1% of this stored
heat, if commercially exploitable, would produce
approximately 280MW of power which is almost 25%
of the current Tasmanian market demand. Given that
it is not unreasonable that between 5 – 10% of an
inferred resource target has the potential to become
commercially exploitable it is clear that there is not
only capacity to satisfy the Tasmanian needs but also
reverse the trend that has seen Tasmania’s energy
import from mainland Australia increase from 2% in
2006 to approximatley 19% of the energy mix during
2008. We certainly hope to utilise the full potential
of the Basslink Interconnector to export power back
into the National Electricity Market and see this as a
significant contribution towards the 2020 Renewable
Energy Target.

“There is no doubt that the 2009 financial year
has been a productive one for all involved in
the industry, as the application of geothermal
technologies unfold rapidly in Australia and
we seek to make it a competitive source of
baseload energy.”
David McDonald
Managing Director