Tuesday 19 May 2009

Funds freed up

Australian
Monday 18/5/2009 Page: 25

THE geothermal and ocean energy industries might crave flagship programs of their own, but at least the special-purpose solar fund frees up more money for geothermal and ocean under the REDP. About $135 million will be transferred to Solar Flagships, leaving $300 million for other technologies ready to move to the commercial stage.

The Government has this week begun weeding out ineligible applications for the REDP, with GeoDynamics and Petratherm, alongside at least a dozen or so others, making it through to the nest stage, while early-stage technologies such as Origin Energy's Sliver solar development will have to await another funding round.

However, the news elsewhere for GeoDynamics was not so good, with its stock slumping by up to 15% after it said the rollout of its hot fractured rock technology could be delayed by six to nine months by the dramatic incident at its Habanero 3 well last month.

Truth is, however, that until the company has regained control of the well which is still spurting steam and hot water it will not know the cause or be certain about the potential delay. The company had hoped to begin production this month at its 1MW geothermal pilot plant at Innamincka in the north of South Australia. CEO Gerry Grove-White says the delay will have a ricochet effect on this and future plans.

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