Petratherm powers on

Adelaide Advertiser
Friday 11/7/2008 Page: 84

Petratherm could be supplying Madrid with green power by mid-2010, after the company announced a full feasibility study into its Spanish project yesterday. The Adelaide-based company said it would move to a full feasibility study, after initial work indicated the potential to generate 45,000 megawatts of thermal energy per year. This is equal to the heating needs of 4000 households. Petratherm's Spanish project aims to tap underground reservoirs, with the hot water to be used for direct heating.

The project, which Petratherm picked up late last year, already has five deep wells drilled on it. The pre-feasibility study found there were geothermal reservoirs between 200m and 800m thick about 1.6 km underground, producing temperatures of about 70-90 degrees celsius. Managing director Terry Kallis said yesterday the company had now started clearing the site, about 40 km northeast of Madrid, and was preparing for detailed well inspections.

"These inspections should tell us everything we need to know to assess the wells' physical and economic potential, from temperatures and flow rates, to depth, structural and other technical parameters to finesse our final decision on project commerciality," Mr Kallis said yesterday. The feasibility study, to be completed over the next six months, will include an environmental impact statement, securing a rig to drill any additional deep wells up to 2 km deep and confirming customer demand and price setting. Petratherm shares closed up 0.5c at 75c yesterday.