GreenRock Energy teaming up with Pacific Hydro on development
Green Rock Energy, Perth Basin exploration permits (source: Green Rock Energy)
Alexander Richter
11 May 2011
Australian geothermal developer GreenRock Energy announces signing a letter of intent with leading Australian renewable energy company Pacific Hydro to cooperate on the development of conventional resources in Western Australia.
In a release, “GreenRock Energy announces the agreement of a Letter of Intent with leading Australian renewable energy company Pacific Hydro to cooperate on the development of power projects based on geothermal exploration permits and licences held by the companies in the North Perth Basin (“NPB”) and the Great Artesian Basin (“GAB”). Maps of these areas are attached.
Pacific Hydro’s assets in Australia have a capital value of is in excess of $1bn. The company has interests in large scale solar PV, geothermal, hydro and wind energy. Operating projects in Western Australia include the 30MW Ord hydro scheme which provides clean energy to the East Kimberly and local diamond mine, and in Victoria and South Australia wind farms with a combined generating capacity of 260MW. More information on Pacific Hydro is attached.
Pacific Hydro and Green Rock Energy are in discussions to explore the potential to bring together the strategic interests of the two companies. The discussions are centred on integrating the Australian conventional geothermal interests of the two companies into a single portfolio, with Green Rock providing exploration and production (E&P) expertise and leading the marketing of the GAB and NPB projects on an equal footing to potential upstream drilling investors. Initial power
projects of at least 25MW are contemplated in both the NPB and the GAB leading to hundreds of MW from each Basin connected into WA’s South West Interconnected System and the National Electricity Market (NEM) respectively.
The Letter of Intent outlines the key terms to be included in a binding Memorandum of Understanding being negotiated between the parties.
Green Rock’s Managing Director Richard Beresford said “We are very excited at being able to attract a power partner of the calibre of Pacific Hydro who shares our belief in the potential of the geothermal resource in Green Rock’s North Perth Basin permits and both companies’ Great Artesian Basin licences to deliver substantial amounts of renewable baseload power. Pacific Hydro has an excellent understanding of what it takes to get power projects into the market given its track record as a leading Australian renewable energy company”.
Pacific Hydro’s General Manager for Australia Lane Crockett said “The Great Artesian Basin hosts a nationally significant conventional geothermal resource which we believe is destined to play a key role in transforming Australia’s energy mix through the provision of renewable dispatchable power into the NEM. Likewise, the North Perth Basin has terrific potential to provide a similar transformation to the West Australian electricity market. We see the partnership with Green Rock as a fantastic way to leverage portfolio value by combining our respective exploration permits, and to harness the clearly complementary capabilities of the two companies. We look forward to working with Green Rock to generate substantial value for both companies from this venture.”
Source: Company release to ASX (pdf)
