Australia:

Petratherm Downsizes Paralana Project in Return for New Australian Renewable Energy Agency Funding (Adelaide Now)

Funding changes give geothermal in Australia a dose of optimism

Petratherm of Adelaide in South Australia, has scaled down its flagship hot rocks project in South Australia and given up millions in promised funding in return for fast-tracked funds from the Federal Government's Australian Renewable Energy Agency (ARENA).

Australia’s geothermal energy industry is celebrating the new financing arrangement saying it could herald a new era of optimism for the technology, and a more realistic approach to financing and ambitions. The industry has been pleading for a more flexible approach in funding, one that recognizes the large up front (and high risk) costs in drilling programs, and the capital required to build the plants.

Under a renegotiated agreement, Petratherm will now receive $13 million under ARENA's Emerging Renewables Program, which will make up half of the $26 million it needs for an initial research project to prove its geothermal technology.

Petratherm will use the money to drill a second deep well and complete a deep geothermal reservoir at approximately 3.8 km depth that connects two wells, and will allow geothermal heat to be brought to the surface and used to generate electricity. If this is successful, a 3.5 MWe pilot plant will be built.

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