Greenearth Energy to focus on its Geelong project in Australia

Alexander Richter 27 Nov 2009

Australian Greenearth Energy has revealed its vision for 2010, focusing primarily on its flagship power generation project in Geelong.

Reported from Australia, “Greenearth Energy (ASX: GER) has revealed its vision for 2010, focusing primarily on its flagship power generation project in Geelong.

Greenearth Energy, which is primarily focused on developing conventional geothermal energy for power production, was the first Victorian geothermal exploration and development company to establish inferred geothermal resources at Anglesea (Victoria) and Seaspray (Victoria) in December 2008 and January 2009 respectively.

As reported in Greenearth’s annual general meeting presentation, the company is listed on the Australian Stock Exchange with a current market cap of $10M and cash position of $5.4 million with no debt.

The company’s primary power generation project is the Geelong Geothermal Power Project, located on the outskirts of the industrial city of Geelong.

Earlier this month, the company announced it had received substantiated support from the local community and government for the project.

On successful proof-of-concept and demonstration stages, the project could displace approx. 1.32m tonnes of CO2 equivalent or 59% of total estimated industrial emissions for the Greater Geelong region.

Greenearth Energy’s domestic geothermal exploration and development focus is on HSA geothermal resources. HSA geothermal resources along with other hydrothermal systems have been successfully developed for power generation since the 1980s HSA geothermal power plants are successfully operating in the United States, Austria, Germany and Australia.

The only commercial geothermal power plant operating in Australia, is a HSA plant in Birdsville, Queensland.

The company has two Government Grant applications pending for the GGPP, which if successful, will see the company drilling its first deep geothermal wells in 2010.

Stage 1 will take place about 9km north of the Anglesea Brown Coal Fired Power Station in mid 2010, where two deep geothermal wells will be drilled to about 4,000m and flow tested. If successful, the wells will be utilised into the company’s Geelong Geothermal Power Project.

The demonstration stage will test whether the project is economically viable, while commercialisation will consist of a fully scalable demonstration plant project in 12MW multiple increments to 140MWe supported by existing grid infrastructure capacity (potentially to 90 MW ) with low cost line upgrade to 360MW.”

Source: Proactive Investors