Activated Logic on the commercialisation of geothermal in Australia
Australian Activated Logic, a provider of geothermal project development and commercialisation solutions in the Asia Pacific region, provides an "Analysis of the recent investment performance, challenges and opportunties, as well as outlook for the Australian geothermal energy sector."
In a press release of today, Australian Activated Logic, a provider of geothermal project development and commercialisation solutions in the Asia Pacific region, provides an “Analysis of the recent investment performance, challenges and opportunties, as well as outlook for the Australian geothermal energy sector.”
ThinkGeoEnergy cooperates with Activated Logic on research and communication regarding geothermal projects in the Asian-Pacific market, a partnership that is of mutual benefit to increase awareness of both players in the geothermal sector globally.
The report released by Activated Logic – “has found that despite the challenging investment climate, interest and investment in the Australian geothermal sector is at an all-time high.
The Australian geothermal sector has not been immune from the downturn in investment, with Activated Logic’s benchmark index, the Australian Geothermal IndexTM (AGITM) closing at a 12-month low on the 21st of November last year. The AGITM, made up of the 9 ASX-listed geothermal companies, valued the sector at $331 million, less than half the sectors $700 million valuation back in July 2008.
Despite the challenging investment environment at the beginning of the year, investors remain interested in the sector and are specifically monitoring the advanced projects which are approaching key milestones. With confidence returning to global equity markets in recent months and the Senate having passed the Federal Government’s renewable energy target (RET) legislation in August, the AGITM is hovering at around $450 million, up 36% from its recent lows.
With market sentiments improving, successful first round Geothermal Drilling Program (GDP) grant recipients, Petratherm (ASX: PTR) and Panax Geothermal Ltd (ASX: PAX) led the capital raising efforts earlier in the year by bolstering their balance sheets by $7 million and $9.3 million respectively. More recently Green Rock Energy (ASX: GRK) also managed to successfully place $1.43 million through a private placement. With more than 50 private geothermal companies active in Australia and appetite for risk returning to financial markets, a string of initial public offerings are expected in the next 3-9 months, with Sydney based Granite Power likely to be the first to hit the market with an expected $50 million IPO later this year or possibly early next year.
For the full release of the company’s report, see link below.
Source: Media Release “The Commercialisation of Geothermal Energy in Australia (PDF)” by Activated Logic of September 14, 2009