Adelaide, Nov 1, 2006 AEST (ABN Newswire) - An Australian company has won the right to help China best determine if, how and where geothermal or "hot rocks" generated power can help service that country's emergence as the world's fastest growing market for electricity.
The decision to award preference and potential government funding for the work to Adelaide-based and ASX-listed Petratherm Limited, has been backed by the Federal Government and key countries in the Asia Pacific Partnership.
These cover the six member Governments of the Asia Pacific Partnership on Climate and Clean Development (AP6) - the United States, China, India, Japan, South Korea and Australia.
Petratherm is the only geothermal energy company to secure the AP6 Project endorsement.
It will see Petratherm on the ground in China over the next nine months identifying hot rocks sites.
The Australian company plans to take an equity position in those sites it thinks offer the best potential to host commercial based power generation from hot rocks.
"The Partnership aims to implement practical projects which contribute tangible improvements to Climate and Clean Development in China," Petratherm's Managing Director, Mr Terry Kallis, said today.
"The AP6 support, to be the subject of further negotiations by December on full AP6 shared government funding for the work, will enable Petratherm to undertake a study to identify high prospect geothermal energy projects in China," Mr Kallis said.
"Formal approval of the project not only signals the support of the AP6 members but in particular the support of the Australian and the Chinese Governments," he said.
"This is a breakthrough consistent with Petratherm's strategy to identify opportunities in Australia and internationally where both the local geology and renewable energy policy framework are conducive for commercial geothermal energy projects."
Under the AP6 endorsement, Petratherm will study the geothermal prospectivity of China utilising the Company's innovative Exploration Model to identify high quality, commercial geothermal projects.
The work will be undertaken in co-operation with Chinese geological institutions, provincial governments and local energy utilities.
Petratherm management personnel recently attended the Australia - China Climate Change Partnership Renewable Energy and Energy Efficiency Business Mission to Beijing and Xian, led by Federal Environment Minister, Mr Ian Campbell.
"This was a turning point for Petratherm, as it secured the Company a range of contacts and information," Mr Kallis said. These included:
- Access to the necessary geological information on China
- Potential joint venture partnering with companies that have already successfully entered the renewable energy market in China, and.
- Determining the legal framework relating to renewable energy, regulatory arrangements and related policy initiatives relevant to geothermal energy projects in China.
Petratherm's Exploration Model was recently vindicated with temperature results achieved at its flagship Paralana project in South Australia being among the highest yet in Australia with strong potential to develop a geothermal system at lower cost than other hot rock thermal concepts.
Below is a brief extract from the booklet summarising the Partnership Action Plans and Australian projects (Refer www.dfat.gov.au/environment/climate/ap6).
"Hot Dry Rock technology was a relatively new way to exploit a non-volcanic geothermal heat resource to produce electricity. Power generation based on hot rock energy has the key advantage of being able to provide large-scale base-load electricity. Only limited exploration for this type of geothermal resource had been undertaken. This project would facilitate exploration in non-volcanic regions of China, using a tool kit developed by Australian Company, Petratherm to locate and evaluate "Hot Dry Rock" resources that could be economically developed for power generation."
Earlier today, Petratherm also announced it had signed a Memorandum of Understanding with Heathgate Resources, operator of the Beverley uranium mine in South Australia, for the mine to potentially take future electricity supplies from any successful commercialisation of the Paralana project just 11 kilometres from the mine.
Contact
Kevin Skinner
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631
kevin@fieldpr.com.au
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