Australian Origin Energy weighs options to extend its renewable portfolio
Aerial view of Habanero-1 in the Cooper Basin, Geodynamics site (source: pesa.com.au)
Alexander Richter
23 Aug 2011
As a result of Australia's carbon pricing regime, Origin Energy is weighing its options on growing its renewable energy portfolio, among it geothermal projects in New Zealand, Indonesia, Australia and Chile.
Australian energy power house “Origin Energy says it is weighing numerous options to extend its energy portfolio, with significant gas and wind opportunities in Australia, along with geothermal projects in New Zealand, Indonesia and Chile, and its proposed massive hydro-electric scheme in PNG.
Origin is one of the big three electricity retailers whose reactions to the federal government’s carbon pricing regime and clean energy package – whether to invest in new baseload gas plants to substitute for coal, or in renewable energy projects to meet the 20 per cent renewable energy target, or both – will be closely watched, not just by politicians, but also those in the clean energy industry, who are wondering whether the company will develop its own projects or sign purchase agreements with third parties.
In other technologies, Origin says it is continuing to investigate geothermal development options within Australia and internationally. It says it is still assessing the results of the fracture stimulation achieved at its Jolokia 1 well in the Cooper Basin, and the potential for use as an underground heat exchange. Habanero 4, another appraisal well, will be drilled this financial year. Origin announced in February that it would write $206 million off the value of its joint venture with Geodynamics because of delays in development.
It is also evaluating the results from the nearby “shallows” venture, which was targeting geothermal resources in shallower sedimentary aquifers. The partners found plenty of heat, but the “permeability”, which governs how easily that heat can be extracted, was not as good as expected.
However, Origin says the first well in its joint venture in Indonesia are likely to be drilled this year. Origin is partnering India’s Tata Power Co in a project in northern Sumatra which could have a capacity of 300MW, and favourable tariffs offered by the Indonesian government. It said development could begin late in 2012.
It is also pursuing projects in Chile, where it has a 40 per cent interest in Energia Andina, which it describes as the country’s leading geothermal exploration company with a portfolio of eight geothermal exploration projects.”
Source: Climate Specatator
