Hot Rock Ltd ramping up operations in Chile

Alexander Richter 30 Sep 2009

Reported from down under, “Australian energy company Hot Rock Ltd is ramping up its operation in Chile in the hope of developing volcanic geothermal resources for electricity generation.

Hot Rock managing director Dr Mark Elliott said the company had long recognised the under-explored and undervalued geothermal potential of Chile.

“The Chile power market represents an excellent market for achieving profitable returns on future geothermal power sales at much the same power prices as Hot Rock expects from its hot sedimentary aquifer geothermal power projects in Victoria,” he said.

Dr Elliott said the high-temperature volcanic geothermal systems in Chile had appreciably lower development costs and did not require price support from Renewable Energy Credits and other such instruments in order to be economically viable.

Chile has a line of active and dormant volcanoes stretching 4,000 kilometres along its north-south axis, with more than 300 geothermal areas identified.

The company said preliminary estimates of the geothermal resource potential of Chile range from 3,000 megawatts to 16,000 megawatts.

Hot Rock has set up a Chilean subsidiary, registered as Hot Rock Chile S.A. and has a permanently staffed office in the capital Santiago.

Hot Rock will begin detailed field exploration studies as soon as geothermal concession applications are granted.

The company said it has filed 12 geothermal claim applications with the Chile Ministry of Mines.

Eight prospects were on an unsolicited basis and four prospects were filed as competitive bids against other international and domestic geothermal development companies.

The ministry is still reviewing the applications although Hot Rock is optimistic the eight unsolicited applications will be granted because they are uncontested.

The outcome will be announced before the end of 2009.”

Source: The Age