This announcement from PAX (geothermal) was interesting. i wonder if CETO could get lucky enough to score $5 mill from this “Climate Ready” grant scheme.
Panax regrets to announce that as part of the Federal Budget, the Government has
decided to close the Renewable Energy Development Initiative (REDI) programme.
As part of the decision, all REDI grant applications under consideration, but not yet
approved by 28 April, 2008, have been cancelled.
Panax’s $5m REDI grant application for drilling a deep appraisal well in the
Limestone Coast area of South Australia was submitted in March 2008. Assurances
had been provided that the REDI programme was fully funded for the 2007-2008
financial year. Following an AusIndustry meeting on 22 April, 2008, our submission
was awaiting a final decision. It seemed that we were close to success. The
Company has now been advised that our application can no longer be considered.
Panax has queried the retrospective cancellation of the REDI grant scheme, but
unfortunately we have been advised that the decision was not an oversight.
However, we have since been informed that our REDI grant application can be resubmitted
on 1 July, 2008, as part of the “Climate Ready” grant scheme. This $74m
fund is administered by the Department of Innovation, Industry, Science and
Research, of which $13.8m will be made available for the next financial year.
The retrospective cancellation of the REDI grant scheme, combined with deferrals in
spending the Government’s $500m Renewable Energy Fund (apparently only
$55.5m of this will be released from now until the next Federal election) is not a good
outcome for Panax, nor for the nascent geothermal industry in Australia. Expensive
deep drilling is the only measure to liberate the vast geothermal potential of Australia,
one of the few opportunities for commercial clean baseload power. The lack and
expense of large drilling rigs, have led to cost sharing initiatives between Australian
based geothermal companies, who are looking for Government support to realise
their plans.
CNM
carnegie corporation limited
