Launching the second round of the program, the Minister for Resources and Energy Martin Ferguson said that the program will provide grants of up to $7 million on a matching-funding basis to support the drilling of deep geothermal wells. Funding will also help finance geothermal proof of concept projects.
“Geothermal energy is an exciting low-carbon, renewable energy source, especially for Australia. There is enormous potential but the initial costs are high. Because of these costs, the Australian Government is supporting drilling at the first stage of development under the auspices of the $500 million Renewable Energy Fund,” said Mr Ferguson.
The first round of the program awarded of $7 million each to MNGI Pty Ltd, a wholly owned subsidiary of Petratherm, and Panax Geothermal.
The funding awarded to MNGI will be used for drilling two deep wells involved in the proof of concept work at the Paralana geothermal site located in the South Australia’s northern Flinders Ranges. The Paralana project is a joint venture between Petratherm, Beach Petroleum and TruEnergy.
Article continues below…In addition to its Government funding, Panax has launched an offer to raise approximately $9.4 million, to be used in conjunction with existing cash reserves to fund the drilling of the Salamander-1 well at the Penola Project in South Australia.
Applications for Round Two funding close on 4 August 2009.
