Adelaide, Feb 7, 2007 AEST (ABN Newswire) - Petratherm Limited (ASX: PTR) is set to become the first Australian company to formally develop hot rock and conventional geothermal energy projects in Spain.
The ASX-listed Petratherm announced today it had lodged an application for geothermal licences northeast of the Spanish capital, Madrid, and that the Company is well advanced in finalising similar applications for a further three project sites elsewhere in the country.
The application marks the Company's first entry into Europe's advanced alternative energy market and continues the Company's recent strong progress nationally and internationally in pursuit of geothermal energy production.
It comes less than a week after Petratherm tied down a new joint venture worth up to A$30 million with Beach Petroleum Limited to commercialise the Company's flagship Paralana hot rock project in South Australia's far north.
It also follows Petratherm's success in November last year in being named by the six member Governments of the Asia Pacific Partnership on Climate and Clean Development - the United States, China, India, Japan, South Korea and Australia – as the only Australian company with exclusive rights to help China develop geothermal or "hot rock" generated power.
"Our entry into Spain is a strategic move consistent with the Company's objective of examining areas where the geology, the energy market and the regulatory environment are conducive to commercially viable geothermal energy projects," Petratherm's Managing Director, Mr Terry Kallis, said today.
"We have examined the potential for both 'hot rock' and conventional volcanic-based geothermal projects in Europe, and Spain met our strategic criteria of being able to explore for shallow hot rocks, close to market."
The lodged application applies to an area identified by the Company 50 kilometres northeast of Madrid and in close proximity to two major high voltage transmission lines capable of carrying in excess of 1000 megawatts (MW) - or two third's of SA's average daily electricity needs.
Local Spanish company formed
Petratherm has established a new Spanish-based company, Petratherm Espana, to hold the geothermal exploration licences for the new projects. Petratherm Espana is owned 93% by Petratherm Limited and 7% by Prehenita – a local Spanish geological consultancy.
"Europe is highly prospective for geothermal energy and in our assessment of its geology, we identified Spain as an excellent target as its geological features are capable of supporting geothermal energy from both 'hot rock' and traditional volcanic sources," Mr Kallis said.
"In addition, the European Union (EU) member countries have enabling legislation that underpins a favourable commercial framework for renewable energy, including geothermal energy.
"Spain is a signatory to the Kyoto Protocol and a member of the European Union and has demonstrated a strong commitment to the growth of renewable energy.
"Electricity tariffs for renewable projects attract prices typically in excess of A$140 per megawatt hour – much stronger than comparable renewable energy pricing of around A$75-85MWh in Australia," he said.
Spain's 40 million population is one of the fastest growing member countries of the European Union and its electricity market is the fifth largest in the EU, with an annual growth rate of 5.0% or double the EU average.
Within this, around 50% is thermal generated (coal/gas), 25% hydro, 15% nuclear and 10% renewable.
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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