GreenRock Energy offered US$5m governmental funding for drilling

GreenRock Energy offered US$5m governmental funding for drilling University of Western Australia, Crawley Campus, Australia (source: flickr/ Ole Reidar Johansen, creative commons)
Alexander Richter 29 Sep 2010

Australian GreenRock Energy is soon to receive US$5m in government funding for its direct use project at the University of Western Australia.

In a release today, Australian developer GreenRock Energy reports that it has been offered AU$5.4 million (US$5m)  funding from the Western Australian Government.

Green Rock Energy warmly welcomes today’s announcement by WA Environment Minister Donna Faragher and WA Energy Minister Peter Collier of Green Rock Energy Limited’s successful application for the 3rd round LEED (Low Emissions Energy Development) Fund.

As a result, Green Rock is set to receive $5.4 million for its proposed project at The University of Western Australia’s Crawley Campus. This project is designed to prove the concept of the direct use of geothermal energy for building cooling and heating in the Perth metropolitan area.

The LEED funding is subject to an agreement to be finalised with the WA Government. Every dollar of LEED funding is required to be matched by three dollars provided from other sources including the funding from the Commonwealth Government for the project. LEED funds will be provided in stages linked to achievement of milestones to be negotiated with the WA Government.

The LEED funding complements the AU$7 million (US$6.5m) funding agreed with the Commonwealth Government under its Geothermal Drilling Program announced on 23 September 2010. To complete the funding for the project, Green Rock is in discussions with potential joint venture partners in the project and the GEP1 geothermal exploration permit covering 143km2 of the Perth metro area.

Once the concept has been proved, several other commercial projects are expected to follow within the GEP1 area and the other permits held by Green Rock in the rapidly growing coastal corridor to the north of the city.

The current plan is for the first well to be drilled on the Crawley Campus in the first half of 2011.”

Source: Company release (pdf)