Geothermal company seeks substantial partner to develop hot rocks project
Friday, 27 February 2009
ADELAIDE-based Geothermal Resources Limited is looking for a partner to help develop the Crower project in the Otway Basin that could potentially support large capacity power generation for decades.
The company made the decision to develop the project – which covers GELs 214-217 and GELs 249-250 – after recent hot rocks exploration results identified large volumes of likely geothermal reservoir rocks with potentially enough contained hot water to support large capacity electrical generation.
“Geothermal Resources’ prospects have the hot water below in vast quantities and the power lines overhead, which is a good starting point for a geothermal energy project,” chairman Bob Johnson said.
“Our 3D geological modelling tells us that there are big volumes of prospective aquifer formations between a depth of 3-4 kilometres that we can tap by drilling.
“Water temperature measurements in old bore holes shows that our area is particularly hot, with well above average geothermal gradients.”
According to the company, the permeable sandstones in the area are interpreted to contain large amounts of stored hot water at 125-150C.
Johnson added that the potential for electricity generation is “huge” provided the hot water is efficiently extracted and delivered in sufficient quantities.
“As is the case with all such projects, the concept needs to be demonstrated by deep drilling into the thermal aquifers, and subsequent flow testing,” he said.
“This is an expensive exercise and Geothermal Resources will be seeking a substantial partner to assist with this next phase of work.
“South Australia’s South East region is shaping up as a major future geothermal energy source for SA following our ongoing exploration and that of another hot rocks explorer in the region, Panax, which has recently announced massive heat resources on its adjoining section of the Penola Trough.”
The Crower project extends from Robe to Penola in the state’s southeast along the deep sedimentary basins known as the Robe Trough and Penola Trough.
GHT Price at posting:
41.5¢ Sentiment: LT Buy Disclosure: Not Held
