KUTh Energy accepted for next round in AU$7 million drilling grant
KUTh Energy has been accepted to undergo a full merrit assessment for a AU$ 47 million geothermal drilling grant for its project in Tasmania.
As announced by the company, KUTh Energy has been accepted to undergo a full merrit assessment for a AU$ 47 million geothermal drilling grant.
In the announcement it is said that “KUTh Energy (ASX: KEN) has been focused on establishing proof of concept for the Tasmanian enhanced geothermal systems (EGS) project.
As part of the main Tasmanian tenement, KuTh defined an Inferred Geothermal Resource of 260,000 petajoules (PJ) at Charlton-Lemont, the first Inferred Geothermal Resource identified in Tasmania. The resource estimation was conducted by geothermal consultants Hot Dry Rocks Pty Ltd (HDRPL) and was conducted in accordance with the Australian Geothermal Reporting Code.
The Charlton-Lemont geothermal play is in proximity to transmission infrastructure and will be the focus of the company’s project application to the Australian Government’s Geothermal Drilling Program (GDP) in August, under which grants of up to $7 million are available for drilling deep geothermal wells.
KUTh’s application, for the grant, has been accepted by the Department of Resources, Energy and Tourism. In its notification, the Department advised that the application was assessed as eligible and will undergo a full merit assessment over the coming months.
The GDP is intended to assist companies seeking to develop geothermal energy by supporting proof of concept projects.
The definition of Proof of Concept contained in the GDP application requires: drilling an initial well to the required depth to reach the desired temperature usually between three and five kilometres. Most projects will involve the drilling of a second well to intersect the reservoir near the first hole. Testing is undertaken to provide information on how much fluid can be circulated through the underground heat exchanger and at what temperature.
The company also has a REDI Grant from the Australian government which has an undrawn balance of $1,034,550. The REDI funds are earmarked for allocation against the Tamar Conductivity Zone project, as part of the Tasmanian EGS project exploration.”
Source: Company announcement via Proactive Investors