Geodynamics planning now small scale commercial project at Cooper Basin
Geodynamics plans for smaller scale commercial project of 5-10 MW at Habanero utilising EGS technology, despite a write off for the costs and asset value of its 1 MW pilot plant near Innamincka, Australia.
News this week report that Geodynamics has written down the value of its Cooper Basin geothermal project, including the asset value.
The write down value is AU$88.8 million (around US$ 80 million). As previously reported the company is currently completing the trial run of its 1 MW Habanero Pilot Plant near Innamincka.
The company reports though that it is not changing its view on the potential future for EGS projects, despite having written down value of exploration and development costs down completely and the pilot plant down to “fair value”.
First results from the Habanero test run are promising and strengthen the company’s view on the role of EGS for the future in Australia’s energy mix.
Transmission extension and the “significant capital investment” requirements are though a big hurdle for further development and likely not economic, particularly as demand has fallen. This is mostly the result of increasing number of installations of rooftop solar photovoltaic panels on homes.
Voices in the industries, among them Origin Energy are expressing the need for support for “emerging technologies”, which includes geothermal.
Geodynamics now plans to initially build a smaller scale commercial project of 5-10 MW to supply potential offtakers in the region. This would require a total of six operating wells.
The write-down caused the company to report a net loss of AU$105 million (US$95 million) for the 2012/13 financial year.