Friday, August 21, 2009

Geothermal plant 'commercially attractive'

ABC News Online, Fri Aug 21

The company looking at establishing a geothermal energy plant in south-east South Australia says it has completed a study that shows the cost of its power would be comparable to wind energy.

Panax Geothermal's discounted cash flow analysis of its site at Penola found the project would be commercially attractive

CEO Bertus de Graaf says the project has the added advantage of being able to deliver base-load power close to the grid.

He says the company is still hoping to begin drilling in October.

"We are really waiting now for the contract drilling rig to arrive, the preparations for the drilling are in progress at [the] site," he said.

"The drilling of that well will take two months or less and we expect within about three months of completion of the drilling we will be to make a decision on the development of the first development plant."

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