Torrens Energy revises resource estimates for Parachilna project, Australia

Parachilna, Australia (source: flickr/ PAgent, creative commons)

Alexander Richter 14 Dec 2011

Australian geothermal development company Torrens Energy releases new resource estimate report for its Parachilna project in Australia.

“The company sharply revised down its previous estimate of 780,000 petajoules released in 2008, to conform with new industry reporting guidelines.

The new estimate, of 88,000PJ, would have the potential to produce 2900 megawatt hours of electricity per year for 30 years [Attention: this does not sound right, it is likely – comparing it to other Australian estimates, that it is meant to support a power generation capacity of 290 MW), the company said.

Torrnes said the project, north of Port Augusta, was well placed for connection to the grid, should it be developed.

“Uniquely, network access can be immediately made from pilot plant through to small scale production for around $12-$22 million, connecting to the Leigh Creek 132Kv transmission line, demonstrating the clear commercial advantage of the extensive Parachilna geothermal field,” the company said.

“The estimated connection cost for supporting larger scale geothermal power production is understandably higher and must be made via a 275Kv or higher line.

“Estimates range around $100 million at Parachilna based on the need to construct a new transmission line.”

While yesterday’s announcement was positive, the company indicated in its recent quarterly activities report that it was looking outside of the geothermal realm for short term cash flow opportunities.

“Torrens Energy remains committed to the geothermal space,” it said.

“However, while major expenditures can be deferred, the board of directors are actively investigating new opportunities for alternative resource projects to enhance shareholder value in the short term.”

Source: Adelaide Now