Australia:

Southern Australia Geothermal Projects May Make it in 2012 (AdelaideNow)

Delayed geothermal projects could make it across the line this year as two SA-focused companies move further toward producing power, the industry association says.

(Photo courtesy AdelaideNow) Steam flows from 

Geodynamics' well in Habanero, South Australia.

Geothermal company Geodynamics plans to drill its Habanero-4 well in the first financial quarter, taking it toward producing power to Innamincka.

Australian Geothermal Energy Association chief executive Susan Jeanes said "this is the year the industry can prove itself"'.

She said the Geodynamics project, that suffered a major setback with a well blowout at Habanero 3 well in 2009, would also work toward fracturing rocks to achieve circulation of super hot water for its 1MW plant.

SA geothermal company Petratherm has drilled a deep well at its Paralana project north of the Flinders Ranges and completed a successful fracture.

This year it could manage to drill the second well needed to produce energy, but the company lost one of its joint venture partners, TRUenergy, last year.

Beach Energy remains a JV partner and operator of the project.

Ms Jeanes was upbeat about the industry saying if the drilling work was successful this year it could help lead the whole sector forward.

"We expect, that given (Geodynamics) successfully proved the concept with Habanero one and three that they will be successful with Habanero one and four because they are drilling into the same geological structure," she said.

"That success at Innamincka will provide a huge boost of confidence in the sector, then the sector hopes that will be followed by a successful well at Paralana."

Petratherm managing director Terry Kallis said plans to begin drilling on a second deep well in the Paralana project were still on track for later this year despite TRUenergy's exit.

"We haven't changed our plans. we're still on track to look to drill later this year," Mr Kallis said.

"There are a range of options that we will look for in terms of funding it (markets, government grants or joint venture partners)," he said.

Research institutions had also banded together nationally, including Adelaide University, to collaborate on research that could help geothermal companies de-risk exploration and project work.

"These institutions have the capabilities to support the development of geothermal projects, they have all banded together through a memorandum of understanding and are investigating options for significant funding support," Ms Jeanes said.

 "That can help take the risk out of identifying resources that can support commercially viable projects, if they can understand more about the resource, then that can help dramatically reduce exploration costs and also make sure areas aren't drilled where it's not a commercially viable resource."