Adelaide Advertiser
Wednesday 5/11/2008 Page: 53
INVESTORS have bought into South Australian geothermal energy explorers in response to renewed Federal Government support for the sector, says Petratherm managing director Terry Kallis. Federal Resources and Energy Minister Martin Ferguson reinforced the Government's commitment to a $50 million geothermal drilling program at a CEDA speech in Adelaide on October 24. Shares in SA-focused geothermal energy stocks have since climbed a combined 34 per cent despite turbulent market trade.
"The Federal Government is reinforcing the fact that they're still committed to the renewable energy sector ... I think people are starting to see what the quality stocks are in each sector," Mr Kallis said. Shares in advanced hot rocks power plant developer GeoDynamics have received the most attention in the past fortnight, climbing 44 per cent, up 32.5c to $1 since October 24.
GeoDynamics expects to build a 50MW demonstration power station at its Innamincka-based geothermal site next year. Drilling at Petratherm's Paralana project begins in May, 2009 under its $57 million TRUEnergy farm-in agreement. Its shares have climbed 37 per cent since October 24, up 13c to 48c. Greenrock Energy and geothermal Resources have also experienced 13 per cent and 43 per cent share price boosts respectively. Smaller player Torrens Energy remained unchanged at 17c yesterday.
Mr Kallis said Petratherm had costed its Paralana Project at $6 million per megawatt (MW) for a 30MW base-load plant operating around the clock. A typical wind project would cost $2 million per MW of installed capacity, but would only operate for one third of the time, making geothermal as cost competitive as wind, Mr Kallis said.
He said Petratherm planned to generate revenues as early as May, 2010 when its Geo-Madrid District Heating Project is expected to be on stream. Agreements with potential joint venture partners for its Chinese and Spanish projects were progressing.
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