News

Australian Paralana project receives $11 million government grant

Australian Paralana project receives $11 million government grant Paralana 2 Well Injectivity Test in January 2011 showing some hydraulic pumps (left) and Coil Tubing Unit (right) (source: Petratherm, June 2011)
Alexander Richter 24 Jun 2013

Australian geothermal developer Petratherm reports that the Paralana Project has been awarded a A$13 million (US$11 million) grant by the Australian Renewable Energy Agency (ARENA).

In an announcement last week to the Australian Stock Exchange, developer Petratherm reports “that the Paralana Project has been awarded a A$13 million (US$11 million) grant by the Australian Renewable Energy Agency (ARENA).

The grant has been awarded under ARENA’s Emerging Renewables Program (ERP) to assist in funding the next stage of works at Paralana. That work will involve the drilling and stimulation of the Paralana 3 well – a producer well into the hot rock reservoir created around the existing Paralana 2 well, as part of an applied research project into the site’s commercial potential.

The ERP grant is provided on a matching funding basis and includes two key conditions;

  • Beach Energy commits to fund its 21% equity share of the matching funding project costs, and;
  • Petratherm secures an additional $5 million in equity (market and/or JV partner(s)) within six months.

The Company is confident that it can satisfy the above conditions and commence the next stage of works at Paralana later this year.

In addition to the above, Petratherm and Beach Energy have renegotiated with ARENA our two existing grants as follows;

  • The AU$7 million Geothermal Drilling Program grant has been terminated, with remaining balance of AU$2.8 million being relinquished, and;
  • The AU$62.8 million Renewable Energy Demonstration Program grant for a 30 MW project has been varied to AU$24.5 million for a reduced 7 MW project.

The changes to the existing grants have been implemented to ensure no crossover between the grants/programs and to reflect the latest information on the projects’ costs, in particular sub-surface costs.

The Paralana project JV has also agreed with ARENA to develop a comprehensive project knowledge sharing program with relevant Australian public research institutions (including the Geothermal Research Initiative).

The Company views the awarding of the ERP grant by ARENA as a strong signal of continued support for the Paralana project and the broader development of geothermal energy in Australia. ”

Source: Company release by email