The companies now changed the agreement with the result of KUTh Energy keeping a majority stake by limiting Kula Energy to the possibility of earning a stake of limited to 49.8% in the Papua New Guinea subsidiary of KUTh Energy.

The initial agreement of January 11, 2012 covered three exploration licenses to be converted into licenses.

“Under the original deal, Kula would earn interest in KUTh Energy (PNG) Ltd (KPNG) by investing its own equity and human resources to accelerate this conversion or buy all shares in KPNG for A$502,000.

The new deal removes the option to buy all shares in KPNG but rather would grant Kula a 35% equity interest in KPNG if it manages to achieve the grant of at least 1 licence application within 12 months or submits a new application for an additional Exploration Licence over an agreed identified area.

This will increase to 49.8% if Kula achieves both objectives.

The current applications ELA 1671 in West New Britain Province as well as ELA 1672 and ELA 1673 on Ferguson Island are considered to have strong geothermal resource potential though considerable work is needed to secure regulatory, landowner, political and market support.”

Source: KUTh Energy via Proactive Investors

The towers are provided by Ormat and arrived by ship in the Port of Tauranga.  About 90 truckloads of equipment have been delivered to the site. The cooling system, so the article – is made up out of four structures with a height of 15 meters and a combined length of more than 300 meters.

Mighty River Power’s General Manager Development, Mark Trigg, said delivery of the shipment was an important milestone in the construction of the plant and would enable future works to continue on the original construction schedule. The cooling system plays an integral role in the operations of the plant.

“It’s great to see the progress on site. The foundations for the cooling towers are almost complete and very soon we’ll be able to see the station really begin to take shape. We remain on schedule for completion and commissioning in mid 2013,” said Mr Trigg.

The plant under construction will be 100% owned by Mighty River Power, while Tauhara North No. 2 Trust will receive parts of the expected revenue stream from the plant as royalty for the resource consent.

Source: Voxy.co.nz

UNELCO & KUTh unite to make geothermal electricity a reality for Vanuatu. With the Power Purchase Agreement close to being finalised, over half of Port Vila’s electricity could be supplied from a clean, renewable, local resource.

“This is a tremendous step towards energy independence,” said UNELCO Chairman, Yves Morault. “As with the wind power at Devils Point we are committed to the Government policy of finding clean renewable solutions to electricity in Vanuatu.”

“KUTh has undertaken a very comprehensive geothermal exploration program and the next stage drilling is all that is needed to prove the geothermal potential. We are keen to see this project succeed,” explained Mr Morault.

The geothermal project will involve at least two stages, firstly a 4 MW plant due to come online in 2015 to be followed by a further 4 MW two or three years later. “That will mean over half of Port Vila’s electricity will be supplied from a clean, renewable, local resource and will provide a great boost to economic development around the new coastal ring road,” Mr Morault continued.

“Plans are already underway for the power lines needed to connect Port Vila to the geothermal power plant at Takara. It is now very important that final government approvals are implemented so that KUTh can commence the drilling.” Geothermal electricity is produced from steam using hot water that is trapped underground. Holes are drilled 2 to 3 kilometres deep to reach the hot water reservoir and bring it to the surface. This powerful resource is then used to turn a turbine that produces electricity. The hot water is later returned to the reservoir deep underground.

Over the last two years experts appointed by the World Bank have reviewed the exploration data produced by KUTh. They concluded that geothermal power from Takara produces the lowest cost power supply addition for Efate under a broad range of conditions, and would generate net economic benefits for Vanuatu. The World Bank study further confirmed that KUTh’s development strategy is sound and recognises that the highly specialised nature of geothermal development will require skills from the private sector.

“We have actually been working in Vanuatu since 2009,” commented KUTh Managing Director, David McDonald, “and we are really excited to see that an independent team of experts has endorsed our strategy.

“The critical next stage is drilling exploration holes into the geothermal reservoir area,” Mr McDonald went on to explain. “This is a high cost operation. Once final government approvals are completed power purchase arrangements can be finalised and we will bring the drilling rig to Efate to start the project.”

“This is an excellent project for Vanuatu. It is good for the investors, good for the community, good for the environment and great for the economy. Through the close cooperation of UNELCO, KUTh and the Government, we are now reaching the point where this project can start.”

Mr McDonald concluded by saying, “I would like to publicly thank those in the government who have had the foresight to support the project and accelerate the final agreements and legislative requirements. This project is a significant step in reducing dependence on imported diesel fuel and a giant leap towards energy independence.”

Commenting on the press release KUTh managing director said “This joint release reflects the strong cooperation that exists between UNELCO and KUTh. Now that the World Bank
report has been completed and submitted to the government we expect that momentum for this project will increase. We have a few regulatory issues to deal with and our people on
the ground are working with the government and UNELCO to address the outstanding items.”

David McDonald further added “Vanuatu is the first project in a portfolio of diesel replacement projects being compiled by KUTh. We have recently announced the successful tender award for KUTh to carry out gradient drilling in Saipan with grant support from the US government. We are also making good progress toward securing the Fiji tenements. The experience of Vanuatu, coupled with the equipment and team that are being assembled for drilling, will position the company well for replicating the model.”

The Vanuatu project

KUTh is planning the development of a two stage geothermal project on the main island of Vanuatu (Efate). Deep drilling is planned to commence in 2012 to delineate the geothermal resource.

Subject to successful drilling;

• The first stage is a 4MW (net) power plant targeted for completion in 2014/2015;
• The second stage is a duplicate 4MW (net) power plant to service the increasing electricity demand. This demand is predicted to come online as a result of new development along the recently completed sealed coastal ring road.

KUTh’s goal is to deliver a clean indigenous power project to Vanuatu at a price that will be more than competitive with existing diesel generated power. With the high (unpredictable) costs associated with diesel power generation ( April 2012 base electricity tariff for Vanuatu is 55.52 Vatu per KWh (AUD 59c)) geothermal power can offer not only lower pricing but stability in prices and important energy security for Vanuatu.

Consultants appointed by the World Bank have had the opportunity to carry out due diligence on KUTh’s exploration program. Their report concurs on the resource target selected by KUTh and the scale of operations required to meet the existing base load and future needs of Efate.

Source: KUTh Energy release by email

“A preliminary memorandum of intent has been entered into with Holcim (Australia) to site the geothermal power plant at Holcim’s Moriac quarry, 8.5 kilometres north-northwest of Alcoa’s (ASX: AAI) brown coal-fired power station at Anglesea, Victoria.

Mark Miller, Greenearth Energy managing director, said in selecting this particular site the company has sought to address many of the topics raised via the site selection process.

“Being located in an industrial extractive industry zone, in an existing operating quarry, close to established infrastructure attempts to ensure that any environmental and amenity impact of a geothermal operation will be significantly minimised.”

Stage 1 of the project involves the drilling of an initial well into the hot sedimentary geothermal aquifer to a depth of about 4,000 metres in an attempt to bring hot water to the surface.

Greenearth will conduct short term tests to assess temperature, geothermal fluid flow rate and formation permeability.

Following successful results, the company will then drill a second well which would establish proof of concept and pave the way for development of the second stage.”

For the full release and details see link below.

Source: Proactive Investors

According to Bloomberg, a recent visit by Goldman Sachs and other lenders have visited operations of Mighty River Power on the North Island, including the site of a geothermal drilling rig by Icelandic drilling company Iceland Drilling.

There are though voices by local Maori groups that say that the planned IPO violates a 172 year old treaty that gave indigenous people rights to their land and resources, in the founding document of New Zealand.

They are now planning a legal challenge to the IPO. At the same time the New Zealand government says the IPO will help raise money for schools and roads as the country is challenged by lower credit ratings given the current debt burden of the country.

For investors and banks the Maori claims and the Treaty of Waitangi are essentially a black box that leaves many things unclear.

According to the news, the government plans to sell as much as 49 percent of Mighty River Power in the third quarter of this year taking it onto the New Zealand Stock Exchange. A move that the government also plans with other energy companies.

Banks that are named in the IPO are Credit Suisse Group, Macquarie Group and Goldman Sachs.

Mighty River Power comments on the current discussions, saying it is not selling its asset, but simply planning a sale of a minority shareholding in the company and the public does not see that the government will still remain the majority stakeholder in the company.

Source: Bloomberg

Last year in November at its annual geothermal conference, the Australian Geothermal Energy Association awarded Peter Reid the Chairman’s Award for his services for the geothermal industry.

In the interview he talks about his passion for the clean energy sector and his drive for bringing geothermal development to Australia.

Really worth the read.

Link: EcoGeneration

Last month Indonesia’s Energy and Mineral Resources Ministry announced that foreign investors in coal, copper, gold and other resources would be required to reduce their stakes to 49% 10 years after the original date of production.

However, Panax has received legal advice confirming that geothermal and renewable energy projects are excluded from the new requirement.

Managing director Kerry Parker said the government in Indonesia was actively supporting and encouraging foreign investment in geothermal projects.

“While mining companies will take a hit from the new regulations, the Indonesian government is fast-tracking foreign investment in geothermal energy,” Parker said.

“Both the government guarantee to protect and support projects during exploration and construction and the promised feed-in tariff are making geothermal a very attractive option for foreign investors.”

Unlike many other ASX listed geothermal companies which have only Australian geothermal assets, Panax has a number of foreign geothermal projects, focused on areas where demand for power requires alternative energy sources.

The company’s interests include four projects in Indonesia, two with a minority stake and two with a majority stake.

Three of the projects are close to development, while the company’s majority owned Jambi Project is at advanced exploration stage.

Parker said Panax expects to bring three zero emission geothermal projects into production in Indonesia in coming years, and is planning further investment in the region.

Indonesia is an attractive place for geothermal investment, hosting some of the richest geothermal reservoirs in the world.

The tightening of ownership rules regarding other resources, including coal, could also make geothermal more attractive for Australian companies.

As part of the Indonesian Government’s carbon strategy, it offers a guaranteed feed in tariff of US$97 per megawatt hour, along with carbon credits to geothermal energy generators. In addition, the government offers full protection to geothermal projects during exploration and construction.

The Indonesian Government has plans to increase geothermal production by 240% over the next four years to more than 4,000 megawatts.”

Source: Proactive Investors

Indonesia’s President Susilo Bambang Yudhoyono said Indonesia is looking forward to the cooperation in the field of education in New Zealand, which is known as a country with superior technological capabilities in the field of geothermal energy.

“New Zealand has an advantage in geothermal. We invite the cooperation, either in the form of joint investment or technical cooperation and other forms of cooperation that brings real benefits to the two countries, “the president said in a joint conference with New Zealand Prime Minister John Key in the Presidential Palace, Tuesday 17 April 2012.

President Yudhoyono said in the next 5-10 years Indonesia will be actively developing geothermal energy. Given the large potential of geothermal in the country.

The government also welcomes the cooperation in the fields of education, which allowed students to learn Indonesia geothermal energy technology in universities in New Zealand.

Source: Bsisnis Indonesia (in Indonesian)

“We’re in the next 5-10 years will develop geothermal energy,” said Yudhoyono.

In the 1970s there was an aid programme of New Zealand and Geothermal NZ Ltd, was a collaboration of several firms to pioneer geothermal power in Indonesia. The company (GenzI) installed a geothermal plant that was inaugurated in 1983 and is still running today.

So as part of a current trade delegation with the NZ prime minister touring Indonesia, Mike Allen ran Geothermal NZ Ltd. at the time. Mike is today the chair of Geothermal NZ, an umbrella group for several companies involved in geothermal development and related services in New Zealand.

The group was formed following the recent development drive in New Zealand with projects like the Kawerau and Nga AwaPurua projects. Japanese Sumitomo was so impressed with the work done by New Zealand firms with those projects, that it proposed further collaborations offshore. So Geothermal NZ was formed not to only work with Sumitomo, but looking at offshore opportunities. East Africa and Chile are markets have been looked at, but Indonesia based on the historic ties is naturally an obvious market for the group.

Geothermal New Zealand, so the article “combines the expertise of a number of New Zealand companies that are relatively small and don´t necessarily have the capacity to go and do independent marketing in Indonesia”, so the combined efforts make this easier for  trade missions like the current one to Indonesia.

The group appears and promotes the combined expertise in discussions with potential partners in Indonesia, and likely in other markets as well.

Something I  personally believe would also be a good model for the Icelandic efforts on the Icelandic Geothermal Cluster … maybe an even international collaboration combining expertise would make sense? Just dropping the thought.

Source: New Zealand Herald

The rig is currently under construction in Italy and is – so the company’s CEO Marcel Manders – expected to be smaller, more mobile, less noisy and safer in operation. (the author assumes this to be a Drillmec drilling rig, of which the company already operates some)

The rig is expected to arrive in August this year. MB Century has recently signed a 30-month drilling contract, with a four-year right of renewal, that includes three drilling rigs working as part of the geothermal development near Taupo New Zealand by Contact Energy.

Source: Rotorua Daily Post

The sale took place by agreement with a tribal group. The deal allows Mighty River Power to buy additional stakes in JVs on the Rotokawa geothermal steamfield and the Nga Awa Purua geothermal power plant.

The share of Mighty River Power at both JVs is now at about 65%.

Mighty River Power looks at a partial privatization, as the government aims to sell minority stakes in four state-owned energy companies. Mighty River Power has committed to building its fifth geothermal power plant, the 82 MW Nga Tamariki project.

The financial liquidity of the company is now at $300 million (US$245 million), allowing the company to proceed with the Nga Tamariki project and also to make a $250 million (US$205 million) commitment to the GeoGlobal Energy Fund.

Source: TV NZ

The outcomes of the research program can be summarised as follows:

• Increasing the chances of success of the first and subsequent wells by increasing the probability of finding suitable geological formations with the required flow rates, thus reducing exploration risk.
• Improving supply through achieving reliable commercial flow rates; better planned, conducted and reviewed stimulation operations; improved understanding and management of stimulation activities.
• Reducing costs through improving reservoir stimulation efficacy through optimised well completions; prolonged well life; decreased operating costs over the life of a geothermal project.
• Creating a more skilled geothermal industry that can work with stakeholders; and better information for decision making that ensures well balanced policy, regulatory and financial settings.

The proposal will be made to the Australian Cooperative Research Centre (CRC) program. This program aims to deliver significant economic, environmental and social benefits to Australia by supporting end-user driven research partnerships between publicly funded researchers and end-users to address clearly articulated, major challenges that require medium to long term collaborative efforts. A step change in geothermal heat flows to the surface is such a major challenge and achieving it will have benefits that extend outside Australia. Information on the CRC program can be found here: https://www.crc.gov.au/Information/default.aspx.

The geothermal CRC funding sought will be between AU$ 35-50 million plus significant in-kind contributions from the geothermal industry. Around half the funding will be provided by the Australian government, with the remaining coming from end users. The CRC will be set up as a company and governed by a majority independent Board.

The group is now seeking end users who believe they can adopt the outcomes of this program and are willing to become active participants. Benefits of participation include access to leading geothermal researchers and linkages into many of the leading industry participants, as well as significant leverage of investment.

For the actual Prospectus document of the group, see: http://www.agea.org.au/dyn/media/news/attachment/99 (pdf)

The Cooperative Research Centres (CRC) concept is well known in Australia and New Zealand, and there are currently about 44 CRC operating in various industry sectors. “A CRC is an incorporated or unincorporated organisation, formed through collaborative partnerships between publicly funded researchers and end users. CRCs must comprise at least one Australian end-user (either from the private, public or community sector) and one Australian higher education institution (or research institute affiliated with a university).” (source: www.crc.gov.au) They are key bodies for Australian scientific research and aims at enhancing industrial, commercial and economic growth through the development of sustained, user-driven, cooperative public-private research centres with the aim to achieve high level outcomes in adoption and commercialisation.”

For the 2012 program there is a focus on clean tech, social inclusion and regions.

It seems like a great way of pushing development forward for geothermal energy in Australia and the region.

I would like to congratulate Arno Schaaf of CSIRO for his appointment and wish the application that it will be successful.

The Solomon Islands is an island group northwest of Australia and southwest of Papua New Guinea in the Pacific.

“The license is centres on the island of Savo, which is a dormant volcano with vigorous geothermal activity – which is around 35 kilometres from Honiara.

The deal was struck with a subsidiary of Kentor Gold known as Kentor Energy, which the company plans to divest into a separate self-funded entity in the future.

Simon Milroy, managing director, commented on the strategic decision:

“The Solomon Islands desperately needs cheaper and more reliable power and the country’s development partners and international development banks are very keen to see significant infrastructure investments like this.

“The Solomon Islands Government and the people of Savo are providing great encouragement for the project.”

Kentor Energy plans to study the feasibility of constructing on Savo a geothermal power plant which will potentially supply the entire Honiara grid and provide future extensions to other demand centres on Guadalcanal.

A legally-binding Surface Access Agreement has already been signed with customary landowners on Savo and initial fieldwork during 2012 will involve geothermal mapping and a 3D geophysics survey which will focus on identifying an Inferred Geothermal Resource under the Australian Geothermal Reporting Code.

If successful this will be followed by exploration drilling and estimation of an Indicated Geothermal Resource.”

Source: Proactive Investors

Announcing the grant at the Australian Geothermal Energy Association’s (AGEA) Geothermal Financing Workshop in Sydney, the Minister for Resources and Energy, Martin Ferguson AM MP, highlighted the importance of this initiative in improving our understanding of the pre-competitive geothermal resource in Australia.

“Geoscience Australia estimates that one per cent of Australia’s geothermal energy could supply the nation’s annual requirement for 26,000 years.

“Before we unlock this immense resource we need to understand the properties that make the best geothermal resource so we can target the best sites for exploration.

“National ICT Australia Ltd’s initiative will help to define the best potential sites, reducing the costs and risks associated with exploration and helping the geothermal industry to take the next step forward.

“The importance of this initiative is underscored by the support it has received from several universities, key Australian industry players and the South Australian Government,” Minister Ferguson said.

National ICT Australia Ltd’s data fusion initiative will take existing geothermal data from a wide variety of sources and apply modern statistical machine learning and data fusion methods. The result will be software that improves the process of exploration, discovery and characterisation of geothermal targets for the benefit of industry.

This is the first project to be funded under the Australian Government’s $126 million Emerging Renewables Program, which has been established to provide support for the development of renewable energy and enabling technologies across the innovation chain.

Further information on the Emerging Renewables Program is available at www.acre.gov.au.

From 1 July 2012, the Australian Renewable Energy Agency (ARENA) will assume responsibility for administering the Emerging Renewables Program. ARENA forms part of the Government’s $3.2 billion commitment to develop a range of renewable energy technologies as we transition towards a low carbon economy.”

Source: Australian Labor Party

Now, the company provides more details about its activities with an announcement regarding the Hudson Ranch I project in the Salton Sea, California. The milestone project mentioned here announced last week that hit has reached grid synchronisation and is running at full capacity only 21 months after commencing construction.

Hudson Ranch Power I is the first new geothermal plant constructed in the large Salton Sea geothermal field in over 20 years and the largest geothermal development in the US in recent years.

Following a further month of field tests, the project would be the first of Mighty River Power’s international geothermal developments to move into commercial operation. Hudson Ranch Power I will supply renewable energy under a long term contract to Salt River Project (SRP), an Arizona utility providing electricity to over 900,000 customers, and uses similar technology to Mighty River Power’s Kawerau and Nga Awa Purua geothermal stations in New Zealand.

Mighty River Power is one of the world’s 10 largest geothermal developers and operators and currently has development interests in geothermal reservoirs across the United States, Chile and Germany.

The Company’s investment interest in the Hudson Ranch Power I project is through the GeoGlobal Partners I Fund (the GGE Fund), which has a minority stake in EnergySource. Through the GGE Fund, Mighty River Power invested US$92 million into the US$400 million project in May 2010, providing the largest equity interest in Hudson Ranch Power I, and facilitating commencement of construction.

Mr Trigg said the Company has taken a measured and prudent approach to international development opportunities and the initial stages of building a platform for international geothermal growth that leverages Mighty River Power’s experience and competencies in this global niche.

This approach has focused on investing equity capital in early-stage geothermal exploration and development in Chile and Germany, complemented in the USA by the investment in EnergySource involving the well known, large-scale Salton Sea geothermal resource and the later stage investment in the Hudson Ranch Power I project just prior to commencement of its construction.

Testing of the geothermal wells supplying the Hudson Ranch I project has demonstrated capacity well in excess of requirements, providing EnergySource with confidence to confirm interest in further investment in the Salton Sea geothermal field. In late 2011, SRP announced a second Power Production Agreement to purchase all of the output of EnergySource’s next project, Hudson Ranch II, also a 49.9MW plant.”

Source: Company release via Voxy.co.nz

The company has received all necessary approvals to spud the Habanero 4 well and will soon commence drilling. Drilling Habanero 4 is the first stage in the gated appraisal and development program that was developed with Joint Venture partner, Origin Energy, and outlined to shareholders at the 2011 Annual General Meeting.

Habanero 4 is targeting a maximum depth of 4,170 metres and completion is expected in approximately four months. Located approximately 120 metres east of Habanero 3, the Habanero 4 site has been selected so that the well will intersect the existing stimulated fracture zone in an area of demonstrated productivity.

Geodynamics? Chief Executive Officer Geoff Ward said, “Recommencement of drilling operations at Habanero 4 is a significant milestone for Geodynamics. Re-establishing access to the Habanero reservoir is a key step to demonstrating the commercial potential and productivity of the world-class deep granite geothermal resource in the Cooper Basin.”

In the release the company also announces that the Innamincka Deeps Joint Venture partners have executed an agreement for the sale of the jointly-owned drilling rig asset, Rig 100, to Key International Drilling Company Limited, a wholly owned subsidiary of Weatherford International Ltd. Additionally Geodynamics has entered into a new agreement with Weatherford Drilling International (Australia) Pty Ltd (WDI) to carry out the drilling of Habanero 4 using Rig 100 which is expected to commence within the next week as soon as funds are received to complete the rig sale.

The total cash consideration for the rig and associated drilling equipment is $16.8 million less selling costs. The decision to sell the rig allows Geodynamics to focus on its core business of geothermal resource development. For future wells, the Company plans to lease or use a rig hiring arrangement in line with standard industry practice.

Mr Ward commented, “The sale of Rig 100 frees up valuable funds to allow us to continue the appraisal and development of the Cooper Basin „Deeps? EGS resource. Together with existing funds and those recently secured from capital raising, the settlement of the Habanero 3 insurance claim as well as accelerated access to funding under the $90 million federal Renewable Energy Demonstration Program (REDP) grant, Geodynamics is strongly positioned to carry out this current drilling campaign at Habanero.”

Source: Company release by email

The West Australian Geothermal Energy Symposium will bring together scientists, technical experts, policy makers and potential end-users to promote and expand the understanding and utilisation of geothermal energy in Western Australia at all levels.  The event will provide a forum to examine the technical, market and regulatory issues critical to the success of the industry and increase public awareness of the opportunities to use geothermal energy.

The event brings together several geothermal companies and organizations in Western Australia for a two day conference. The event will cover geothermla power gneeration but also geothermal heating and cooling.

Details via the events website at: www.wageothermalsymposium.com.au/

Today I am asking you for your help in a short Reader Survey. It would be great if you could assist in filling out the survey.  Click here to take survey

I sincerely hope that you find the site and its features useful. From the beginning I have been using a variety of social media tools to help promote geothermal energy. Twitter has become an increasingly important tool. Facebook is something a bit underutilized. Google+ is coming. The ThinkGeoEnergy LinkedIn group with now also around 600 members is providing a great platform for discussions. The Ning community has not been that overly successful, but is still being used.

The free-to-use pictures I share via ThinkGeoEnergy’s Flickr account are also popular. If you want to share good geothermal pictures you can do this via the Flickr Group of ThinkGeoEnergy.

Then there are the other elements. In 2010, a weekly newsletter was added that today has over 600 subscribers and now even has a fine co-sponsor in Scientific Drilling. The Geothermal Job Portal was added last year and slowly gains some traction.

Also at the end of 2011, ThinkGeoEnergy was able to offer one of the first Geothermal apps for the iPhone – the GeoEnergy app, available in the App Store.

I am also very excited about the ThinkGeoEnergy Geothermal Power Plant Map, which is in full work. It is under development, so don´t expect it to be anywhere close to ready and correct, but for a preview see here: http://map.thinkgeoenergy.com/map.php, for the old map (on Google Maps) you can use this link.

I am now going through a bit of a strategic review of the site, for which the survey is supposed to be a little guidance of what you want to see for ThinkGeoEnergy going forward, so your help is appreciated.

There are some exciting news coming along for the industry, so the start into this year looks a lot better than indications of the end of last year. So lets hope we will see an exciting year.

I am also exploring the idea of a Marketing Workshop/ event in connection with the GRC Annual Meeting and the GEA Trade Show in Reno this fall, so stay tuned.

In this context I also would very much like to thank all the companies that have supported me through the years with advertisements and other contributions. Namely this is Islandsbanki, ISOR, GeothermEx, Hannon Armstrong, Verkís, Mannvit, Technip, Scientific Drilling, Iceland Drilling, Enerchange and Activated Logic.

There are a large number of other individuals and companies that have helped tremendously through advise, thoughts, critical remarks and comments and general support.

Panax has signed a Letter of Intent to collaborate with the University of Melbourne, which will allow the university access in and around Panax’s deep geothermal well, Salamander-1, near Penola in South Australia’s southeast.

The Salamander-1 well was completed to a depth of 4,025 metres in March 2010 and the first steam was produced in June 2010. Salamander-1 was the first deep geothermal well in the Otway Basin and is the first well of its type to demonstrate conventional geothermal technology in Australia.

Panax Geothermal Managing Director Kerry Parker said the research and studies conducted by the University of Melbourne on the Salamander-1 geothermal well, would provide insight into the complications found during well-testing, and contribute toward further progress of remediation options for the well.

“We are hopeful that this important research will help us answer questions about the seismic state of the area around Salamander-1, and the state of the key formations as producing geothermal reservoirs,” Mr Parker said.

“Research into understanding geothermal energy will take us one step closer to realizing the ultimate commercialization of this significant “under the grid” energy resource, which is of strategic importance to Australia.”

“With a better understanding of the results, we will be able to progress to the next stages of remediation and position ourselves to secure funding from the Australian Federal Government to allow further progress of this nationally important energy source.”

Panax is building on its investment in deep drilling by making Salamander-1 available to the geoscience research community at University of Melbourne.
The two-year research partnership with the University of Melbourne gives Panax access to the Australian Geophysical Observing System (“AGOS”), a A$23 million integrated research infrastructure platform funded by AuScope Limited* that will provide data to facilitate better long-term management of geological resources, particularly in Australia’s energy-rich sedimentary basins.

Establishing this research infrastructure under AGOS will allow AuScope’s partner institutions to begin to answer key questions about the Hot Sedimentary Aquifer (HSA) potential of the Otway Basin.

“This partnership will be a step towards establishing a unique national subsurface research facility that will benefit the entire Australia geothermal sector. The benefits will include capacity building, research and training, and understanding of the deep geothermal reservoirs that exist in the Otway Basin region of Australia,” Mr Parker said.

Panax’s Otway Basin geothermal tenements target four troughs, with higher than average temperatures. It is a significantly large project area with more than 3,000 kilometres2 and an estimated generating potential of more than 1,500 megawatts. The region will be a major contributor towards Australia’s clean energy targets given the size of the project and its strategic location.

Panax anticipates the research will deliver insight into downhole logging with temperature and seismic logging tools, and in situ stress analysis. Laboratory based research is also set to be carried out.”

Source: Company release by email

“Erdi Fuels took up 8.4 million shares between November 2011 and February 2012, increasing its total holding to 16.5 million shares. This equates to a 14.69% interest in Greenearth. Erdi Fuels took up its initial 9% holding in Greenearth in mid-2011.

In November 2011, Greenearth secured a $25 million funding agreement with the Victorian Government to progress its flagship conventional geothermal project.

The funding will assist with two stages of the Geelong Geothermal Power Project development, with the first $5 million going towards drilling an initial well into the hot sedimentary geothermal aquifer.

This well will be drilled to a depth of about 4,000 metres in an attempt to bring hot water to the surface.

Greenearth is looking to the Australian Government for further financial support for the project.”

Source: Proactive Investors

If the geothermal resource is proven, the partners plan to commence the preparation of a front-end engineering design (FEED) for an initial 25-50 MWe binary geothermal development and if feasible, commence power plant construction.

This opportunity may potentially be suitable for existing power producers (IPP’s), drilling companies wishing to vertically integrate their activities, resource companies interested in hedging their exposure to future carbon policies, or equity investors interested in gaining exposure to the Australian renewable energy sector.

The projects

The Mid West and Great Artesian Basin Geothermal Power Projects are located in two large geological basins, the North Perth and the Great Artesian basins respectively. These basins have been demonstrated to contain significant reserves of hot geothermal fluids over an extensive area and have been successfully exploited in the Great Artesian Basin by an operating geothermal power plant in South West Queensland, since the 1990’s.

The Mid West Geothermal Power Project (MW-GPP) involves the appraisal and development of conventional geothermal resources in close proximity to transmission infrastructure in the Mid West region of Western Australia.

• Independent geothermal resource assessment available for MW-GPP
• Extensive reservoir information obtained from regional petroleum activity

The Great Artesian Basin Geothermal Power Project (GAB-GPP) involves the appraisal and development of conventional geothermal resources from the extensive and highly prospective Great Artesian Basin in the North East of South Australia.

• Regionally extensive and relatively shallow geothermal resource
• Operating geothermal plant less than 50km from GAB-GPP

For additional details on the project and how to submit an expression of interest visit the website of the “Australian Conventional Geothermal Development Alliance”

Disclaimer

Information related to the investment opportunity provided above is for general information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products and should not be relied on for any specific purpose under any circumstances.

The Ormat Technology project could add to a raft of geothermal power projects worth hundreds of millions of dollars in the central North Island recently completed or planned by big players such as Contact Energy and state-owned Mighty River Power.

The investment by Tikitere Ltd Partnership, wholly owned by Ormat Technology, was approved by the OIO in December.

Under the proposal, the subsidiary would work with three Maori land trusts – Tikitere, Paehinahina Mourea and Manupirua Ahu Whenua, known as Tikitere Geothermal Power Ltd – to build and run the station on 900 hectares between Lake Rotoiti and State Highway 30.

Tikitere Ltd Partnership has agreed ownership and operation of the station and any interest in the land would revert to the trusts after 14 years.

However, a group of shareholders from the three trusts says the project could be delayed because of inadequate consultation. After Maori Land Court hearings, the group has lodged an application to the Court of Appeal to have the trustees who signed the deal with Ormat removed.

“The shareholders are not against the project in principle but … communication and consultation between trustees and shareholders has been totally lacking,” a spokesman for the group said.

“The shareholders now see a big international company moving in on their land without having talked directly to the people who live there.”

There was also concern over whether Ormat would return ownership to the trusts after 14 years, he said. And resource consents had not been granted.

“It is not a done deal and there is still a long, long way to go before any holes are drilled.”

A Tikitere Ltd spokesman said several conditions, including resource consent, still had to be met before construction would begin. The investment criterion had been one of the conditions.

The $200 million funding by Ormat represented expenditure over the life period of the power station, and not only the construction cost, he said.”

Source: Stuff.nz

Additional grant funding available from CNMI for the amount of USD 500,000 to support follow-on assessment work (Stage Two Additional Assessment Work) if warranted and approved by CUC following the determination of the Stage One Geothermal Gradient Project. Previous studies undertaken by Southern Methodist University (USA) and National Renewable Energy Laboratory (USA) identify potential geothermal targets and rate geothermal as high impact on CNMI future power mix if resource can be identified.

Current base load diesel generation 30 MW and Peak load 45 MW. Compelling economics to replace diesel with geothermal base load power. The success of the Saipan tender builds on the company strategy to become a significant player in the development of geothermal energy to displace high cost diesel generation in remote grid locations.

Commenting on the successful tender, managing director David McDonald said, “I am very proud of the team effort to secure this tender in Saipan. We have stayed consistent to our plan of seeking projects where a potential geothermal target exists and the market dynamics offer a compelling reason to investigate. This project was identified by KUTh before any grants were announced and initial reconnaissance has paid off. This allowed us to get a head start on the RFP process and to show a commitment that earned the respect of people in Saipan”.

David further commented that “the geotechnical programs and extensive geothermal gradient drilling that we have undertaken in Tasmania has demonstrated our ability to take a green field geothermal play and implement structured exploration programs to pinpoint a geothermal drilling target. There is also no question that our exposure to the Vanuatu project has extended our role into volcanic hosted geothermal plays and broadened our contacts through the geothermal development chain. It has also highlighted our ability to work through the issues related to remote grid power development. All these issues will be important as we progress through the various steps of the Saipan project. The inclusion of the exclusive concession to the company for the development of geothermal on Saipan will allow the company to conduct a structured exploration program with clear security of tenure. We are looking forward to working with the CUC team and its technical advisors as we implement the first stage funded geothermal gradient project”.

Saipan – Commonwealth of the Northern Marianas

Situated north of Guam in the Pacific Ocean, the Commonwealth of the Northern Mariana Islands (CNMI) comprises 14 islands. Saipan (the capital), Rota, and Tinian are the main islands. CNMI is a self-governing US territory and the US President is its Head of State. The government of Saipan has secured funding from the US government to support the geothermal exploration Stage One works being undertaken by KUTh.

Source: Company release by email

Following a strong uptake of the SPP, the Geodynamics Board has authorised acceptance of applications up to the maximum amount of $6.2 million, raising a total of $10 million through the SPP and institutional placement. Together with the recent placement, funds raised from the SPP will be used to progress the Company’s Cooper Basin Geothermal Project, commencing with drilling Habanero 4 planned for spudding in February 2012.

The SPP and institutional placement were conducted by joint lead managers RBS Morgans and Austock. Geodynamics’ Managing Director and Chief Executive Officer Geoff Ward said, “The
ongoing support from Geodynamics’ shareholders is very much appreciated. As we wish to accommodate shareholders to the greatest extent possible, the Geodynamics Board has decided to accept applications up to the maximum amount under the plan.”

“Geodynamics remains in a strong position to continue the development of the Habanero Deeps Enhanced Geothermal Systems (EGS) project and we look forward to a year of significant field activity, commencing with the drilling of Habanero 4.” Allotment of shares under the SPP will occur on 30 January 2012. Applicants will be advised of the issue price of shares under the SPP following the 5 day VWAP (Volume Weighted Average Price) period and of their final allocations with holding statements expected to be dispatched on 2 February 2012.

Source: Company release (pdf)

The findings are interesting not only for the geothermal industry that sees its high capacity factors as one of the key selling arguments. While the research shows that geothermal energy is still a very favorable base-load capacity energy source for utilities world-wide, capacity factors are often not as high as they theoretically could be.

Building on the vast resources collected over the year, the research done by Bloomberg New Energy Finance for this study is quite thorough and looked at 71 geothermal fields globally.

For a global average, BNEF quotes a capacity factor of 73% and correctly notes that developers use much higher capacity factors for their project finance models. Higher resource temperatures statistically increase capacity factors at a rate of around 1% per 10 degrees Celsius. The performance of the different fields varies widely, with Iceland, Mexico and Indonesia representing the highest capacity factors. The age of the plants in Japan and the Philippines is mentioned as a reason for the lower capacity factors in both countries, through decreasing productivity of geothermal fields over time.

In detail the report goes into general trends of plant performance, performance by technology, country and developers.

In an interview with Mark Taylor the Head of Geothermal at Bloomberg New Energy Finance, he said, that “the findings might not be ideal for the industry, but geothermal energy is still base-load given its 90% availability. Also utilities in the U.S. still favor Geothermal and consider it a viable base-load option. This means that developers can still secure healthy power purchase agreements (PPA) and capital should be available for good projects.”

For financial institutions, capacity factors are important and information like that provided by Bloomberg New Energy Finance is crucial for the questions investors need to ask and developers need to be prepared to answer. “Lower than expected capacity factors could though mean difficulties with regards to not meeting PPA contract requirements, as well as meeting debt and interest payments through a decrease in revenues,” Mark Taylor added.

Geothermal development always has a risk element when it comes to resource assessment, drilling and planning, but the report by Bloomberg shows that it is crucial to be conservative in estimates as they determine the underlying contractual terms of the PPA, but also the availability of financing.

Again – and I mentioned this in various presentations these past 12 months – it is the question about the necessity about being conservative and successful, rather than overpromise and not live up to estimates given. The geothermal reporting codes by Australia and Canada are providing a codified approach to reporting of resource assessments that could help create investor confidence in projects, but also be one helpful element in securing PPAs that live up to expectations on both sides.

The company had lodged geothermal exploration licenses applications over three locations in Papua New Guinea, but was advised by the Mining Advisory Coouncil in 2009 that the applications could not be processed until such time as the PNG government set up a regulatory framework for the exploration and development of geothermal energy. KPNG has its applications in current status pending the set-up of the proposed regulatory framework.

In the key terms of the MOU KUTh Energy PNG and KULA Energy, the companies agreed in an equity investment by KULA to accelerate securing exploration licenses over the application areas lodged by KPNG, KULA will have an initial period of 12 months ending December 31, 2012 to secure one or more of the KPNG exploration license applications (one of which must be Talasea application area) and in return will earn a 49.8% share in KPNG if this condition is met. If KULA does not meet the conditions of securing the licenses noted, it may seek an extension of the time or alternatively may exercise an option to buy all KUTh shares held in KPNG for $502,000.

KULA consists of principals Julian Malnic and John Bishop and has also engaged other management staff to assist in the on-ground licence pursuit. Julian Malnic is no stranger to PNG and the mining sector. He is the founding shareholder of Nautilus Minerals Inc. and Executive Chairman of Direct Nickel, both companies having activities in PNG. He has a long family connection to PNG and his passion to make a real impact on the renewable power sector is a key factor in KPNG considering cooperation with KULA.

John Bishop also has extensive experience in the mining sector and, as one of the founding shareholders of KUTh, continues to have a passion and drive for the development of geothermal around the world. As a director of KUTh, John has not participated in any board decisions concerning the MOU or in the negotiation of the final MOU terms.

The board of KUTh has been evaluating projects and building a pipeline of opportunities. KUTh management sees the need to dedicate resources to the more advanced projects to ensure the best chance of success. The resource potential in PNG is attractive but considerable work will need to be performed to secure the regulatory, landowner, political and market support. The board considers that at this point in the company’s development, capital funding and human resource allocation is a key priority and the expansion of the project portfolio will be better served by alignment and association with collaborators that bring expertise and support funding to move potential projects to the next stage.

Commenting on the signing of the MOU, managing director David McDonald said, “I am pleased that we have been able to reach this agreement with KULA and I know that they are already actively running with this. We recognise the resource potential in PNG and we are keen to see this project moved to the next stage. We are equally aware that the progress now being made in Vanuatu and a number of other target areas means that we
have to focus our limited capital and resources. This style of cooperation has the effect of extending our reach through collaboration. We will support the KULA team in their pursuit of these licences but the on ground driving will need to come from them”

Source: Company release (pdf)

Geodynamics’ Managing Director Mr Geoff Ward has confirmed that personnel and equipment are now being mobilsed on site in readiness for drilling activity.
“Our drilling contractor Weatherford Drilling International has been notified to move drilling crews back to site and commence crew training. Material and other service contractors have also been engaged in preparation for a planned spudding before the end of February 2012.”

“We remain very focused on our drilling program. Habanero 4 represents the first major step in an appraisal program designed to demonstrate a commercial scale energy project at the Habanero site within the next two years.”

Habanero 4 will be drilled using Rig 100, with the program expected to take approximately four months. The Joint Venture plans to drill the Habanero 4 well to a target depth of approximately 4,170 metres to access the existing fracture zone. Following achievement of this objective, the well will be tested to secure data necessary to continue reservoir development studies and validate reservoir models.

On the basis of the well information obtained, the fracture zone may then be locally stimulated similar to that performed at Habanero 3 with the purpose of extending the fracture
network.

“Our return to operations at Habanero is a significant step towards the development of this valuable resource for Australia,” concluded Mr Ward.”

Source: Company announcement (pdf)

“Geothermal company Geodynamics plans to drill its Habanero-4 well in the first financial quarter, taking it toward producing power to Innamincka.

Susan Jeanes said “the Geodynamics project, that suffered a major setback with a well blowout at Habanero 3 well in 2009, would also work toward fracturing rocks to achieve circulation of super hot water for its 1MW plant.

SA geothermal company Petratherm has drilled a deep well at its Paralana project north of the Flinders Ranges and completed a successful fracture.

This year it could manage to drill the second well needed to produce energy, but the company lost one of its joint venture partners, TRUenergy, last year. Beach Energy remains a JV partner and operator of the project.

Ms Jeanes was upbeat about the industry saying if the drilling work was successful this year it could help lead the whole sector forward.

“We expect, that given (Geodynamics) successfully proved the concept with Habanero one and three that they will be successful with Habanero one and four because they are drilling into the same geological structure,” she said.

“That success at Innamincka will provide a huge boost of confidence in the sector, then the sector hopes that will be followed by a successful well at Paralana.”

Petratherm managing director Terry Kallis said plans to begin drilling on a second deep well in the Paralana project were still on track for later this year despite TRUenergy’s exit.

“We haven’t changed our plans. we’re still on track to look to drill later this year,” Mr Kallis said.

“There are a range of options that we will look for in terms of funding it (markets, government grants or joint venture partners),” he said.

Research institutions had also banded together nationally, including Adelaide University, to collaborate on research that could help geothermal companies de-risk exploration and project work.

“These institutions have the capabilities to support the development of geothermal projects, they have all banded together through a memorandum of understanding and are investigating options for significant funding support,” Ms Jeanes said.

“That can help take the risk out of identifying resources that can support commercially viable projects, if they can understand more about the resource, then that can help dramatically reduce exploration costs and also make sure areas aren’t drilled where it’s not a commercially viable resource.”

Source: Adelaide Now

ThinkGeoEnergy would like to thank its advertisement partners that have helped to keep the site running. So my sincere thanks to Íslandsbanki, Iceland GeoSurvey (ISOR), GeothermEx, Hannon Armstrong, Verkís, Mannvit, Technip, Iceland Drilling and the many other firms who have helped in one or another way.

This year was quite an active one for ThinkGeoEnergy. Finally late this summer, the Geothermal Job Portal was launched with now several jobs posted. Clearly it will need to grow and it will.

Earlier this month GeoEnergy, the iPhone news app for ThinkGeoEnergy was published on the App Store and allows a condense news overview for those of you using an iPhone. It will be tried to offer an Android app as well, but this might take a while.

In October, ThinkGeoEnergy – together with ISOR – published the Geothermal Power Map, a printed world map with the locations of the geothermal fields of this world. The online version is still a work-in-progress, but will be worked to a useable format in 2012.

To many of you, I would like to extend my gratitude for your ongoing dedication to geothermal energy and development in general. Many of you became good friends and I cherish our friendship and ongoing cooperation. Keep up the fight for development in Asia, the Pacific region, Australia, U.S., Canada, Chile, Argentina, Turkey and so on.

I wish you all a peaceful and regenerating holiday season. I am looking forward seeing many of you at the several geothermal events in 2012.

With all the best wishes for 2012,

Alex(ander) Richter

The placement is part of a capital raising program to raise $8 million through a combination of institutional placement and Share Purchase Plan (or “SPP”). With the result of the placement, the Company will now launch the SPP to raise a target amount of $4.2 million. If demand under the SPP offer results in this amount being exceeded, the Company will consider accepting applications under the SPP so that the combined amount raised does not exceed $10 million.

Geodynamics’ shareholders will be invited to participate in the SPP through subscription for up to $15,000 worth of new shares in the Company at the lower of the placement price ($0.15 per share) or a 7.5% discount to the 5 day VWAP at the Allotment Date, subject to a minimum offer price of $0.135. Details of the SPP will be announced shortly and documentation sent to shareholders.

The placement was conducted by RBS Morgans, Austock and New York-based Viriathus under S.708 of the Corporations Act and represents 7.1% of the existing issued capital. Following the issue, Geodynamics will have fully paid issued capital of 363.6 million shares. The funds raised from this placement and SPP will be used to progress the Company’s Cooper Basin Geothermal Project, commencing with drilling Habanero 4 in first quarter 2012.

Geodynamics’ Managing Director and Chief Executive Officer Geoff Ward said, “This is a measured capital raising that will ensure that we can move in a material way smoothly through our appraisal and development program, focused on demonstrating Australia’s first commercial geothermal project at the Habanero site. We have a clear strategy to achieve this over the next two years and are well prepared for our next drilling campaign at Habanero.

“The placement has been strongly supported by our cornerstone investors, Sentient and Sunsuper, and our project continues to be backed by Origin Energy through their direct investment and 30% interest in the Innamincka Deeps (EGS) Joint Venture. This support, together with our accelerated federal government grant funding and recently announced Habanero 3 insurance claim settlement, positions Geodynamics well to significantly advance our Deeps EGS project and target demonstration of a commercial scale project at the Habanero site within the next two years.

“Our Cooper Basin geothermal resource is a national scale asset capable of making a material contribution to Australia’s base-load energy needs for more than 40 years and we commend the Share Purchase Plan to our shareholders.”

Source: Company release (pdf)

“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

In November 2011, the Innamincka Deeps Joint Venture reported that it was to receive a gross payment of $12.0 million finalising Parts B and C of the Habanero 3 insurance claim to cover redrill and environmental expenses. Net proceeds to the Joint Venture after loss load deductions were approximately $10.8 million with Geodynamics share totalling $7.6 million.

Geoff Ward, Managing Director and Chief Executive Officer of Geodynamics said, “Finalising the Habanero 3 insurance claim has been one of the Company?s key internal measures to support funding of the proposed work program commencing with the drilling of Habanero 4 in first quarter 2012. The insurance settlement in concert with the announced accelerated federal government funding under the Renewable Energy Demonstration Program (REDP) positions Geodynamics well to further our appraisal program.”

The figure of $7.6 million is in addition to a net amount of approximately $4.0 million paid by the insurer to Geodynamics for settlement of Part A of the claim announced in April 2011.”

Source: Company release (pdf)

The project is a EGS pilot project in the outback in South Australia.

The company expects drilling to commence in the first quarter of 2012, to a target depth of around 4,170 meters accessing the existing fracture zone.

“Drilling will be undertaken through a gated process whereby success at various stages of the well will be required in order to proceed to the next stage.

Habanero 4 is the first step in an appraisal program that the joint venture has adopted, which, subject to success at the various stages, including the drilling of Habanero 4, as well as other Habanero sites, has the objective of demonstrating a commercial reserve at the Habanero site.”

Source: EcoGeneration

The precinct will comprise a mix of gas, wind and solar power generation, and later geothermal power connection.

One option for connection to the “on-grid” market is via Olympic Dam, and Petratherm intends to initiate commercial discussions with BHP Billiton (ASX: BHP) to explore this.

The precinct will be located on Moolawatana Station, just 50 kilometres north of the Paralana project site, with exclusive rights for power generation over 1800 square kilometres of land.

The location has been selected because it is the nearest point to the on grid market where there is a convergence of all four future resources – gas, wind, solar and geothermal.

Moolawatana has abundant solar and wind resources and is traversed by the Moomba to Adelaide gas pipeline.

The precinct will provide Petratherm with a way to get the geothermal resource from its Paralana project to market in the quickest time frame.

The Paralana geothermal resource is estimated to be able to supply around 1300 megawatts of power production capability for 30 years.

The clean energy precinct will be developed in a staged process with the first 300 megawatts of power generation coming from a combination of gas and wind due to their high availability, competitive price and significant carbon benefit.

The second 300 megawatt stage of the precinct will include the introduction of large scale geothermal and solar, as both of these technologies come down their respective cost curves.

Petratherm also has in the pipeline a Heliotherm research and development project which may have the future potential to fully integrate the solar, gas and geothermal energy resources to reduce the capital cost of solar thermal by as much as 40% and provide baseload operation.”

Source: Proactive Investors

GeoEnergy – the ThinkGeoEnergy Geothermal News App

Long time in the making it now available on the App Store. “GeoEnergy” is a news application of ThinkGeoEnergy.com. It provides the complete news overview, access to the Twitter feed of ThinkGeoEnergy, the latest contributions posted on Flickr and YouTube, as well as regional feeds of geothermal news around the global.

As far as I am aware it is the first real Geothermal Energy focused App for the iPhone.

The app is available for free on the App Store. It has cost me though considerable nerves, effort and time to put it up, so if you feel rather generous any donations are welcome. To donate Click here

I might also spend some time creating an app for Android, but this might take a while.

The company’s new development, the Te Mihi geothermal power plant is part of a greater Wairakei Investment Programme. The programme includes the steamfield project, that incorporates the production of well connections for production wells, a new separation plant, new steam and two phase lines, reinjection line and pumps, reinjection well connection wells and a holding pond.

Part of the programme is also a bioreactor project that will help to achieve a required  H2S reduction to discharges to the Waikato River from the Wairakei power stations.

The drilling project of the programme will include new production wells at Te Mihi and in the Western Bore Field at Wairakei, new reinjections wells at Karapiti and in Pihipi West, as well as maintenance of production and reinjection wells at existing Contact power stations.

The company provides also an update on the progress for the construction of the Te Mihi Power Plant, highlighting progress on foundations bein gin place, as well as the detailed design progressing.

For the future Contact Energy sees geothermal as a key ingredient for further growth and is looking at two new fields, that require partnerships with Maori land owners.

The fields looked at are Taheke, Tikitere, but also further development at the Wairakei/ Tauhara resource. The consented 250 MW development at Tauhara would include Wairakei A& B and a binary plant, Poihipi, Te Huka and Te Mihi.

The new Tauhara station would be 250 MW and be located to the northeast of Mount Tauhara.

But the company also has eyes on various other prospects for further geothermal development.

With overall 400 MW in the development pipeline, the company is one of the leading developers in the world today and it is quite exciting to follow the further development of Contact Energy and general development in New Zealand.

Source: Contact Energy Geothermal Update November 2011 (pdf)

Tasmania

“The Tasmanian government has extended KUTh’s key exploration license area (SEL26/2005) located in the central and north-eastern region of Tasmania.

The licence has been extended by 5 years from 1 August 2011 until 31 July 2016 to allow KUTh sufficient time to undertake its next stage geothermal exploration programs. The government of Tasmania are well aware of the challenges that have faced the geothermal sector over the last two years and in granting the extension have recognised the considerable works undertaken by KUTh to identify two inferred resource targets within the tenement boundaries. KUTh has also surrendered various areas that it believes are no longer of geothermal development interest.

The Company has now contracted its areas in Tasmania to the two key resource targets identified at Lemont and Fingal. As reported previously it has also been the first to implement reporting of these targets in accordance with Edition 2 of the Australian Code for Reporting of Exploration Results, Geothermal Resources and Geothermal Reserves.”

Vanuatu

The Vanuatu “Ministry of Lands, Geology, Mining and Energy have extended KUTh’s key prospecting licence located at Takara, North Efate (GTPL 29001) for a further seventeen (17) months, revising the expiry date from 1 April 2012 to 1 October 2013. This licence includes all three of KUTh’s identified inferred resource targets and potential drill sites. KUTh’s remaining Licence areas consisting of Teouma (GTPL 29000 expires 1 April 2012) and Epule (GTPL 210003 expires 1 April 2013) will be reviewed closer to the scheduled expiry dates.

The extension was granted to cover the period that the company has been sidelined awaiting the finalisation of the World Bank Energy review and the regulatory review process undertaken on existing energy tariffs. The extension period will enable KUTh to finalise power off-take and commercial arrangements and proceed through the next stage drilling programs.”

Source: Release on Tasmania (pdf) and Vanuatu (pdf)

The scholarships are being funded by the New Zealand Ministry of Foreign Affairs and Trade’s Aid Programme.

Of the 25 scholarships about half will be for Indonesians – building on the close cooperation between the two countries in the field of geothermal energy.

Faculty of Engineering Dean Professor Michael Davies says the University recognises that as a leader in geothermal research and education it has an important role to play in the Government’s plan for geothermal development.

“The University and New Zealand have a long history of sharing its geothermal expertise with developing countries.”

New Zealand and Indonesian engineers developed Indonesia’s first geothermal energy in the 1970s, and New Zealand has trained over 160 Indonesian engineers at The University of Auckland’s Geothermal Institute.

More than 850 students from more than 50 countries have graduated from the University’s Geothermal Institute with a world recognised qualification in geothermal energy; many have gone on to become leaders in the global geothermal industry.

New Zealand Aid programme, Deputy Secretary Amanda Ellis says that the scholarships will help contribute to sustainable economic development in the participating countries.

“New Zealand sees access to clean, reliable and affordable energy as essential for sustainable economic development and the New Zealand Aid Programme is pleased to be supporting this innovative partnership with The University of Auckland’s Geothermal Institute.“ Amanda said.”

Source: University of Auckland release

The piece looks at the cities of Boise, Idaho and Reno, Nevada in the United States, Reykjavik in Iceland, Masdar City in the United Arab Emirates and Perth in Australia.

In Boise, Idaho, the article talks about the different geothermal district heating systems in place and the pride the city’s mayor takes into his city’s efforts.

Reno, Nevada has become the hub of geothermal companies and development in the United States, just in the city area there are about 100 MW of installed geothermal power generation capacity.

The city of Reykjavik, the  capital of Iceland is also looked at and highlighted are the various uses of geothermal within the city limits for not only power generation and heating, but also greenhouses, fish farming and more.

The city of Masdar in the United Arab Emirates is also looked at based on the efforts to make this city a renewable energy model. So far though the city hasn´t been able to utilize geothermal, so the choice for this list is maybe not as correct despite the continuing efforts.

The choice of Perth also is quite interesting. The connection to Cooper Basin is simply geographically wrong as the Cooper Basin is in South Australia and Perth on the West Coast. There are though – and this is not mentioned – interesting projects being worked on in Perth and in the state of Western Australia. The University of Western Australia is doing great efforts on utilizing geothermal heat for cooling and developer Green Rock Energy is working on developing geothermal power projects around Perth.

So while the article is a bit weak on the examples of geothermal utilization in cities and misses the probably largest geothermal district heating system in the capital of France, Paris, but at least it covers the potential geothermal energy can play for cities.

Source: Mashable

Mighty River Power’s General Manager Development, Mark Trigg, said the Company’s sponsorship would provide funding of $1 million over a five year period to the role – known as the Mighty River Power Chair in Geothermal Reservoir Engineering – supporting the rebirth of the University’s internationally renowned Geothermal Institute.

“The University of Auckland is among the top Universities in the world for geothermal engineering research and education – an area of high importance to our business. The re-establishment of the Geothermal Institute will provide vital impetus to the building of New Zealand’s geothermal capacity, both in terms of a greater number of graduates with the skills sought by Mighty River Power, and also in building a greater depth of geothermal knowledge in New Zealand,” said Mr Trigg.

Professor Michael Davies, Dean of the Faculty of Engineering, said the Geothermal Institute is a cross-faculty centre with a focus on research and education related to the exploration and utilisation of geothermal energy resources.

“Since 1978, more than 850 students from over 50 countries have graduated from the Geothermal Institute with a world recognised qualification in geothermal energy – with many graduates going on to become leaders in the industry. We recognise the important role the University has to play in the Government’s plan for geothermal development and are very pleased that Mighty River Power’s support and expertise will take us closer to fulfilling that role,” he said.

Mighty River Power is recognised as one of the world’s leading geothermal developers, investing over $1 billion over the past 5 years in domestic geothermal developments and deploying a further $466 million to construct the new Ngatamariki power station near Taupo. The Company also has projects in the US, Chile and Germany through its investment in the GeoGlobal Energy (GGE) Fund – the first of which, Hudson Ranch Power 1 in the Imperial Valley of Southern California, will come to market in 2012.

A search panel, including a representative from Mighty River Power, will be established to appoint the Chair, with applications expected from all over the world. It is anticipated the new professor will be appointed during the first half of 2012.”

Source: University of Auckland release via InfoNews

The program’s overall objectives include: determining how the fluid and rock interact below 4 km; discovering what factors determine the permeability; determining what issues might affect well productivity; and estimating the potential for sustainable, deep geothermal resource utilization in the zone.

So far, the country has exploited geothermal resources down to about 3 km at temperatures up to 330° C. The Taupo Volcanic Zone (TVZ) contains deep geothermal sources, down to 5km depths, and with temperatures at 5 km depth likely to exceed 400° C.

The first stage of research is focused on what type of resource is available. That research is being led by Greg Bignall of GNS Science, a geosciences firm based near Wellington in Lower Hutt.

The goal of the TVZ program is to drill, sample and assess the permeability, structure and energy potential of deep-seated geothermal activity in the zone, Bignall says. “Understanding the permeability structure of the deep-seated TVZ geothermal system is crucial to their future sustainable utilization,” he says.

Bignall says the TVZ resources are unique because they are both deep and high temperature. He said geothermal resource temperatures in Europe are lower than in the TVZ — drilling projects in Germany and Russia reached greater depths, but tapped much lower resource temperatures. The TVZ-DGDP could be expected to tap near-supercritical/supercritical fluids at 4 km to 5 km depth. (Substances become supercritical when subjected to temperature and pressure above their critical point, where liquid and gas phases are indistinct.)

The first research stage, called “Hotter and Deeper,” is expected to conclude in 2012. GNS is working with Victoria University in Wellington, the University of Auckland, and Industrial Research Ltd, a Crown Research Institute of New Zealand.

Future research will become more focused on geosciences and engineering associated with the proposed “deep hole” in the Taupo Volcanic Zone.

The government, and eventually industry, will fund the program. Bignall said the team estimates the cost of drilling at up to NZ$30 million.”

Source: ENR Engineering News

The data, released today, is the result of a new Global Protocol developed in partnership with internet giant Google to estimate and map the planet’s enhanced geothermal systems (EGS).

The rocks beneath Australia (within 5km) store enough heat to theoretically provide 85 million megawatts (MW), or all of Australia’s current electricity demand for 50,000 years; If just 2% of the estimated heat energy within 5km is recovered with existing technologies, there is potentially 395,000 MW power available – almost 10 times that of coal or gas (40,647 MW current installed generation capacity in Australia)

“This is clean, renewable energy that is realistically accessible today with existing drilling and power conversion technologies,” HDR’s Managing Director Graeme Beardsmore said.

“Not only that, EGS has the potential to provide base load power; it is one of the most abundant sources of renewable energy available and is more than sufficient to replace current coal and gas power supply.

“Essentially, EGS presents us with a compelling solution to tackling climate change as well as addressing future energy supply issues. Now that Australia has a carbon pricing mechanism, we have the means to work on making clean EGS power generation a reality.”

The HDR-led Protocol development has resulted in the recent release of the first EGS map for the USA, and a preliminary heat flow map for Australia. Australia is also home to the largest EGS project in the world – a project working towards a 25MW pilot plant in South Australia’s Cooper Basin.

The Protocol, endorsed by the International Energy Agency earlier this year, sets the global standard for determining how the electrical power potential of EGS is estimated in a consistent way around the globe.

IEA-GIA[4] Chairman Chris Bromley said the organisation had long recognised the potentially huge contribution that EGS could make as a global energy resource, and included it as a foundation investigation topic at the IEA-GIA’s creation in 1997.

The Protocol provides governments and industry with the means to begin factoring EGS into the energy mix and will also provide greater certainty and confidence for investors based on a deeper knowledge pool.

“Investment in EGS – and conventional geothermal energy – has until now been a difficult proposition because of the lack of information available in order for investors to do the necessary risk assessments,” Dr Beardsmore said.

“The megawatt statistics and maps generated under the Global Protocol now provide a tangible knowledge base for proper investment and energy policy development.

“We know EGS works technically, and we know it can work commercially. The objective now is to make EGS a major part of the future energy mix in Australia and around the world.”

State by state breakdown of EGS potential under the Global Protocol

For all state statistics, technical EGS generation potential:

• Up to 300°C
• Within 5kms depth
• If extracted over the next 30 years

Nationally, current installed generation capacity of thermal (coal and gas) is 40,647 MW

ACT

• 43 megawatts (MW) if just 2% of estimated heat energy is extracted
• 430 MW if 20% of estimated heat energy is extracted
• Zero (0) thermal power production currently installed
• Conclusion: ACT could become a generator of power with up to 430 MW of potential from geothermal

NSW

• 55,133 MW if just 2% of estimated heat energy is extracted
• 551,330 MW if 20% of estimated heat energy is extracted
• 11,940 MW thermal power production currently installed
• Conclusion: up to 46 times the potential amount of geothermal than that currently generated by coal and gas

VIC

• 12,411 MW if just 2% of estimated heat energy is extracted
• 124,110 MW if 20% of estimated heat energy is extracted
• 8,386 MW thermal power production currently installed
• Conclusion: up to 15 times the potential amount of geothermal than that currently generated by coal and gas

QLD

• 136,759 MW if just 2% of estimated heat energy is extracted
• 1,367,590 MW if 20% of estimated heat energy is extracted
• 11,022 MW thermal power production currently installed
• Conclusion: up to 124 times the potential amount of geothermal than that currently generated by coal and gas

SA

• 58,541 MW if just 2% of estimated heat energy is extracted
• 585,410 MW if 20% of estimated heat energy is extracted
• 3,491 MW thermal power production currently installed
• Conclusion: up to 168 times the potential amount of geothermal than that currently generated by coal and gas

WA

• 46,080 MW if just 2% of estimated heat energy is extracted
• 460,800 MW if 20% of estimated heat energy is extracted
• 4,947 MW thermal power production currently installed
• Conclusion: up to 93 times the potential amount of geothermal than that currently generated by coal and gas

TAS

• 3,021 MW if just 2% of estimated heat energy is extracted
• 30,210 MW if 20% of estimated heat energy is extracted
• 345 MW thermal power production currently installed
• Conclusion: up to 88 times the potential amount of geothermal than that currently generated by coal and gas

NT

• 83,104 MW if just 2% of estimated heat energy is extracted
• 831,040 MW if 20% of estimated heat energy is extracted
• 516 MW thermal power production currently installed
• Conclusion: up to 1,610 times the potential amount of geothermal than that currently generated by coal and gas

Source: HDR release

The development agreements, for what will be known as the Te ia a Tutea Development, enable initial exploration and feasibility study of the geothermal resource and provide for long-term co-ownership of any subsequent developments.

Mighty River Power General Manager Development, Mark Trigg, said the signing symbolised a milestone in the Company’s long-standing relationship with both Okere and Ruahine Kuharua.

Mighty River Power’s joint development approach with Maori Land Trusts has been the platform for the Company’s significant growth in geothermal over the past decade, supported by its now internationally recognised expertise he said.

The Taheke resource was thought to be of medium temperature spanning an area potentially comparable to the Rotokawa field, where the Company has completed its most recent development, Nga Awa Purua.

Chairman of Okere Incorporation, Don Bennett, said the Te ia a Tutea agreements reflected the mutual understanding between all parties about co-ownership and sustainable development of the resource.

He said that Okere had been in discussions with Mighty River Power for many years and over that time mutual respect and trust was formed. Having also observed the successes of the partnership between Mighty River Power and Tauhara North No.2 Trust it was a natural choice to select Mighty River Power as their geothermal partner.

Chairman of Ruahine Kuharua Incorporation, David Wickliffe, said “This is a landmark development where two Maori landowners have agreed to come together with respect to geothermal development in the spirit of whanaungatanga. Signing these agreements marks a significant milestone”.

Mr Trigg said that subject to consenting arrangements, exploration drilling is expected to start on the field within the next 12 months.”

Source: Mighty River Power

The geothermal brine testing services contract secured by Greenearth subsidiary Pacific Heat and Power Pty Ltd (PHP) is designed to assist in producing further emissions-free power at the site in New Ireland province of Papua New Guinea.

The contract involves evaluating the low temperature brine that is currently under-utilised, using a specially designed test rig. PHP will provide a lead coordination role between international equipment suppliers and local geothermal experts.

On completion, the test results will provide critical information required to select and design a Turboden Organic Rankine Cycle (ORC) system that maximises the geothermal power production, whilst minimising maintenance requirements and ensuring high reliability.

Mark Miller, managing director of Greenearth Energy, said “this activity strengthens our belief that there is a substantial future for ORC technology in the Pacific Islands.”

“Our range of power generating systems, complementary services and associations with skilled engineering companies have the potential to efficiently deliver significant megawatts of emissions free, or low emissions power in Australia and the wider Pacific Rim.”

Turboden has been a Pratt and Whitney Power Systems Company since 2009, part of United Technologies Corporation (NYSE:UTX).

Turboden specialises in the applications of Organic Rankine Cycle technology, a technology which allows the producuction of electric power efficiently and in a user friendly way, from low temperature and/or low power heat sources.

Significantly, Turboden’s ORC equipment has a proven track record. The company recently completed contracts for three 5MWe geothermal systems to customers in Germany.

The systems operate on temperature sources similar to the temperature of brine at Lihir island, brine from separators in high temperature geothermal systems, or to be found in Australian geothermal applications.

Turboden’s range of equipment includes modular ORC units with high efficiency, ranging in sizes from 1MWe to 10MWe and scalable solutions for larger plants.

Geothermal Turboden ORC can produce electricity from geothermal sources with medium to low temperature, ranging between 90°C – 180°C.”

Source: Proactive Investors

Panax is in regular and on-going discussions with Molten, and has recently completed a series of meetings and discussions with Molten and its investors in the United Sates.

While Panax remains sufficiently confident that Molten will be able to provide the required funding for Panax’s portfolio of advanced projects in Indonesia, it is clear that Molten will require some additional time to enable them to fulfill those objectives.

On this basis, Panax and Molten have agreed to a six week extension to the term of the Heads of Agreement, to allow Molten sufficient additional time to complete its required financing arrangements.

Panax is confident of building a strong working relationship with Molten and its team, and is sufficiently satisfied with the work completed by Molten to date in seeking financial close on this transaction.

Panax Managing Director Mr Kerry Parker said Panax was delighted to be progressing with a partnership with a company of Molten Power’s calibre. “Molten will bring additional strength of personnel and experience to Panax’s advanced portfolio of projects in Indonesia, and it is clear that they have made sufficiently strong progress in their financing discussions to date” he said.

“Molten and its people have significant experience in large-scale geothermal development activities across the world, and they have recognised the quality and strength of Panax’s portfolio of projects that have been assembled over the past 18 months”.

Mr Parker said that Panax was pleased that Molten had been able to easily see the long term economic value of the portfolio of projects that Panax has been able to assemble in Indonesia.”

Source: Company release via e-mail.

Panax Geothermal corporate overview video:

The vote was passed in the lower house and in the Senate in a rather tight vote with not much of a majority.

The government has set the initial price per tonne of carbon at Australia $23 or about US$24, much higher than other similar schemes such as in the EU where the price is between US$9 and $13 per tonne.

It is expected that the bill will particularly hit the country’s mining firms, airlines, steel makers and energy firms.

The carbon tax has been pretty much a shot in the arm for the geothermal energy industry in Australia, that is considered to be one of the only base-load capacity and renewable energy options Australia has.

Australia will see its Annual Australian Geothermal Conference in Melbourne, November 16-18, 2011.

Source: BBC News

NICTA aims to combine existing data from industry partners and Geoscience Australia to determine the porosity of rocks in an area and how easily they may be fractured.

Companies could use those properties to assess the economic viability of prospective projects, which generally involve passing water through fractures in the rocks and harnessing resultant steam.

According to project leader and NICTA chief executive officer Hugh Durrant-Whyte, the project could deliver a “value-add” solution to geothermal industry partners within two years.

Durrant-Whyte planned to fuse together and extract information from seismic data, remote sensing imagery and magnetotellurics by adapting techniques that NICTA had developed for biology and underwater terrains.

Like uncovering a terrorist network, no single data source yields the desired result but the whole is more than the sum of its parts.

“The problem is essentially a large-scale data one,” Durrant-Whyte explained. “Australia has a very big competitive advantage in terms of large data sets; a lot of data is held by Geoscience Australia.”

Discussions for the project commenced late last year and a workshop involving Australian Centre for Renewable Energy chair and NSW chief scientist Mary O’Kane was convened in mid-2011.

“Getting people who are computer scientists and mathematicians to talk to geologists can be quite challenging,” Durrant-Whyte said, declining to identify NICTA’s partners in the geothermal industry.

“We’re beginning to do preliminary-level work; we’ve been looking at data and have a good plan as to how we’re going to draw it together,” he said.

NICTA plans to dedicate six to 12 of its 100-odd machine learning experts to the project, and make outcomes available “on a non-exclusive basis to all partners”.

Addressing the AIIA national board dinner last week, O’Kane noted that the geothermal industry had “a lot of trouble raising capital”.

The Centre for International Economics (pdf) in 2006 reported that geothermal energy could meet Australia’s total electricity requirements for 450 years.

But “tapping our wonderful geothermal resources in Australia is very expensive,” O’Kane said.

“Those of you who have shares in the geothermal companies will know that they haven’t been paying you back a lot recently,” she said.

“I believe we will get something really powerful out of [the NICTA project], so those of you with geothermal shares, watch this space.”

O’Kane highlighted the CSIRO’s Glass Earth project, which commenced in 1998 and aimed to make the top kilometre of the Australian continent “transparent” to the minerals exploration industry.

The Glass Earth project eventually dissolved due to a lack of tools and data. However, O’Kane and Durrant-Whyte said there was now enough data to support the geothermal project.

“There’s a lot more data available now and also lots of different types of data sensors,” Durrant-Whyte said.

“A lot of progress has been made in that area and the second part it: algorithms to data fuse enormous data sets to come up with a reasonable interpretation of what’s going on.”

Source: IT News

The company ays its plans for the demonstration plant could power up to 8000 homes.

“The grant follows two years of negotiations with both Labor and Coalition governments to secure the funds under the state’s Energy Technology Innovation Strategy, first promised in 2009.

The first $5 million will go towards drilling a four-kilometre deep well to test the geothermal resource at one of the company’s exploration sites. Greenearth holds exploration licences for Gherang, Wensleydale and Anglesea, and a preferred site will be announced in three months.

Greenearth managing director Mark Miller told The Age the company would now seek cash from the federal government’s $126 million Emerging Renewables Program to fund the rest of the $18 million needed for the first exploration well, expected to be drilled in early 2013.

If the first well test is successful, Greenearth will drill a second exploration well, costing $14 million, and then hopes to start building the 12-megawatt pilot plant, which will cost a little more than $100 million, after 2015. Twenty million dollars of the state grant is tied to the pilot plant being built.

State Energy Minister Michael O’Brien said the company would have to ”satisfy rigorous and comprehensive planning and environmental regulations and carry out local community consultation before any work could begin”.

The grant comes at an important time for the Australian geothermal industry, which has felt the pinch following the global financial crisis and slow progress of some high-profile projects.

Greenearth is one of four companies that lost federal drilling grants in August when they could not secure matching funding from private investors.

A review of the geothermal industry by Allen Consulting in March – commissioned by the federal government and quietly uploaded last month onto the Energy Department’s website – found the industry will be limited to ”niche market developments” if new government and private investment is not found.

Source: The Age

Science and Innovation Minister Wayne Mapp said New Zealand will be admitted to the International Partnership for Geothermal Technology in Melbourne, Australia, Nov. 16, Xinhua reported Wednesday.

“This recognition of our geothermal research programs will allow our scientists to collaborate with an elite group of researchers in the United States, Australia, Switzerland and Iceland,” Mapp said.

“Geothermal energy is one of our most important renewable energy resources with huge potential for growth,” he said.

Geothermal electricity generation in New Zealand increased 21 percent in 2010 and accounted for 13 percent of total electricity generation, officials said.

“This new international partnership will help keep us at the forefront of technology developments such as enhanced geothermal systems,” Mapp said.

The IPGT, established in 2008, works to promote advanced, cost- effective geothermal energy technologies through international research cooperation.”

Source: UPI

According to the release, the companies state that this will give them a “dominant position for geothermal power development in the Mid West which is the fastest growing electricity market in the State. Magnetite mining and processing projects in the region will require many hundreds of Megawatts of baseload electricity over the coming years. A map of the permit areas is attached.

New World Energy is an unlisted dedicated geothermal energy exploration and development company based in Perth and focussed on Australia and the Asia-Pacific region. The company is the largest geothermal energy landholder in WA with permits covering the prospective areas in the Pilbara and Mid West regions, and is actively acquiring significant projects throughout the Asian ring of fire. In September 2011 it announced the acquisition by its Philippines subsidiary Geoenergy Inc of five high-potential geothermal projects in the Philippines.

Currently Green Rock has 100% interests in 9 GEPs in the North Perth Basin and New World Energy has 100% interest in 8 GEPs. The agreement contemplates the parties joint venturing across all the Permits subject to certain conditions being met:

• Green Rock and New World Energy being satisfied that the work programs and conditions imposed by the Government for the Permits, as may be amended, for the New World Energy Permits and Green Rock Energy Permits respectively are acceptable to each of them
• Green Rock and New World Energy being satisfied with arrangements between them for recovery of past expenditures on the Permits
• New World Energy agrees to the terms of the MoU between Green Rock and Pacific Hydro (announced on 4th August 2011) which includes the Mid West Geothermal Power Project, and Green Rock procures Pacific Hydro consent to farm-out Permit interests to New World Energy.

Green Rock will be the initial operator of the joint venture.

The agreement gives Green Rock exposure to a much larger resource footprint and a second potentially attractive drilling target area while reducing its expenditure commitments to explore and develop geothermal resources. The joint venture will focus on identifying the most prospective drilling target for drilling two wells with the objective of an initial ~5MW of power generation capacity connected to existing power infrastructure.

Green Rock’s Managing Director Richard Beresford said “Green Rock considers the Mid West Geothermal Power Project a strong contender for State and Commonwealth funding towards drilling the first two well. Working jointly with New World Energy further strengthens our prospects and we look forward to further progress on funding over the next few months.”

New World Energy’s Managing Director John Libby added “The mutually beneficial joint venture will create a single entity with access to the best geothermal areas in WA that are adjacent to transmission infrastructure and major baseload energy markets. This collaboration will allow both companies to pool their technical and financial resources to ensure the most timely and cost effective geothermal development”.

Source: Green Rock Energy release of October 31, 2011 (in pdf)