Geodynamics delays Cooper Basin decision

Adelaide Advertiser
Wednesday 14/4/2010 Page: 34

GeoDynamics will make a final investment decision on a proposed $300 million, 25 MW geothermal demonstration plant in the Cooper Basin by early 2013 - two years later than previously stated. The delay is related to a production well breach incident in April last year, which caused the postponement of commissioning of its 1MW pilot plant at Innamincka.

The decision to invest will mean that GeoDynamics "is confident the geothermal resource is proven, the technical aspects of production are well defined, and the significant investment of approximately $300 million required to construct a commercial-sized power plant will be money well spent," the company said yesterday. "It (the delay) is essentially a result of not only the incident, but the learnings we have taken from it as well," GeoDynamics managing director Gerry Grove-White said. "I feel confident about the program. We now have a clear understanding of issues we are finding the answers to.., and we have a strategic advantage to other geothermal players," he said.

The firm, with joint venture partner Origin Energy, yesterday outlined a new forward work program with updated timelines for commissioning of the pilot plant and decision on the demonstration plant. The firm plans to harness heat in granites underground to produce steam to drive turbines and has completed a proof of concept stage. The 25 MW plant has already won $90 million in funding under the Federal Government's Renewable Energy Demonstration Program, and is a step towards GeoDynamics' rollout of plants to generate 500MW by 2020. The 1MW plant is on track to demonstrate the first power produced from an enhanced geothermal system in Australia by 2012.

Before this happens however, two new wells - Habanero 4 and Habanero 5 - will be drilled to power the plant. A second drill rig, Rig 200, has been purchased by the company to drill the new wells and will be commissioned before the end of the year. An underground heat exchanger will also be created at Jalokia 1, located 9kms from Habanero, to prove underground reservoirs can be created across the company's tenement areas. "The successful completion of this work program will provide us with two potential sites to build the commercial demonstration plant, each site having demonstrated flow testing from multi-level heat exchangers within the granite," Mr Grove-White said.