Petratherm plans to start work on small Tenerife project in early 2014
Subject to funding, Australian Petratherm is planning to start work on its 3-5 MW project on the island of Tenerife in the Spanish Canary Islands, off the coast of North Africa in early 2014.
In a release this week, Australian developer Petratherm (ASX: PTR) reports that it currently seeks to finalise funding arrangements for the next critical stage of works for its project on Tenerife, an island part of the Spanish Canary Islands group off the coast of Northern Africa.
In early 2014, the company now plans, subject to funding, to complete a circulation doublet, aimed at producing a commercial rate of energy extraction. If a sustainable high production flow rate can be achieved, then the new 3.5 MW organic rankine cycle (ORC) power plant is to be installed.
Subsequently, the connection of the new 3.5 MW plant to the local customer, Beverley Uranium Mine, will occur via a 11km underground 33kV transmission line. This second phase of work is subject to the Commonwealth Government Renewable Energy Development Program (REDP) grant, which will provide funds on a $1 for every $2 spent basis.
The project has been fully budgeted and financial modeling shows this initial development will be commercially viable inclusive of grants.
Source: Company Quarterly Report via 4-Traders