Petratherm has announced an expected $17 million writedown of its Paralana project assets in South Australia after failing to meet a deadline for a government grant last month.
Despite a seven-month extension on the deadline, the company failed to meet an Australian Renewables Agency requirement it raise $5 million from investors.
The deadline miss meant the company will also not be able access the $24.5 million Renewable Energy Development Program grant for the 7 MW geothermal plant in the Flinders Ranges.
The funds were to be used for a second well for the $62 million Paralana project, which taps naturally fractured shales just above the hot basement rocks.
Petratherm executive director Terry Kallis confirmed the lapsed grant meant the company would be "unable to fund the project in the forseeable future".
