Australia’s new carbon tax plan a break for the geothermal in the country
Latrobe Valley, Victoria, Australia (source: flickr/ yewenyi, creative commons)
Alexander Richter
19 Jul 2011
Australia's government announces the details of a carbon tax of $24.65 a ton, aimed at lowering greenhouse gas emissions by discouraging the use of fossil fuels and increasing investment in renewable energy.
Following”10 months of negotiations and sometimes nasty public debate, Australia’s government has finally announced the details of a carbon tax of $24.65 a ton, aimed at lowering greenhouse gas emissions by discouraging the use of fossil fuels and increasing investment in renewable energy.”, so the Los Angeles Times.
It reports that “In 2015 it will be replaced by an emissions trading program. The plan, was announced last week by Prime Minister Julia Gillard, will now go before Parliament, but its passage is assured as it is the result of a deal reached with the Australian Greens and two independents with whom the Labor Party formed a government last year. The Greens party also holds the balance of power in the Senate.”
The carbon tax has been hoped for by the geothermal energy industry in the country for a long time as it would help with development putting the industry at least more competitive to other energy technologies in Australia.
The immediate results were quite dramatic, with the listed geothermal players on the Autralian Stock Exchange saw a surge in their stock price. Geodynamics (GDY) immediately went up 25% and while there was a continued up and down, it has reversed the downward trend since late last year. While selectively different for other listed players, such as Greenearth Energy (GER), Green Rock Energy (GRK), KUTh Energy (KEN), Hot Rock Energy (HRL) and others, the same can be said about these companies.
Source: LA Times
