Slide 1: Carbon pricing presentation by MD (ASX Release)
ASX Release PETRATHERM LIMITED ABN 17 106 806 884 For personal use only Carbon pricing presentation by MD The attached presentation, by Petratherm’s MD, Terry Kallis, summarizes the broad impacts of the recently legislated carbon pricing initiatives for the National Electricity Market (NEM), the Geo
Slide 2: About the recent carbon package of legislative reforms
About the recent carbon package of legislative reforms The recently passed legislation includes a comprehensive package of carbon pricing initiatives that will now commence from July 2012, and can be briefly summarized as follows; For personal use only The introduction of a price on carbon creates t
Slide 3: Carbon pricing presentation
Petratherm Limited For personal use only Carbon pricing presentation Managing Director Terry Kallis November 2011
Slide 4: For personal use only
For personal use only
Slide 5: Disclaimer and competent persons statement
Disclaimer and competent persons statement For personal use only Disclaimer In particular, they speak only as of the date of this To the extent permitted by law, Petratherm and its This presentation has been prepared by Petratherm document, they assume the success of officers, employees, related bod
Slide 6: Presentation Outline
Presentation Outline › Australian geothermal energy potential and cost comparisons with For personal use only other energy technologies – conventional and renewable › Geothermal cost drivers and comparisons of different geothermal energy technologies › Paralana project key assumptions and commercial
Slide 7: Geothermal energy overview
Geothermal energy overview For personal use only Geo-science Australia (GA) has estimated that the potential geothermal resource is equivalent to 26,000 times Australia’s annual electricity energy consumption The potential is enormous The challenge is to deliver geothermal power economically at a co
Slide 8: Energy technologies - Australian Resource Assessment
Energy technologies - Australian Resource Assessment - GA For personal use only Independent study by MMA* (now part of SKM) shows that EGS geothermal is expected to be highly competitive with all forms of generation and amongst the lowest cost renewable, reducing in cost over time to be under $100/M
Slide 9: Geothermal energy overview – key parameters
Geothermal energy overview – key parameters For personal use only Operating Project Examples Key Project Parameters Paris basin district heating › Temperature › Drilling depth Azores volcanic › Flow rate › Network connection › Generation plant type Imperial Valley HSA › Market/Customer Heber plant ›
Slide 10: Development Model – Heat Exchanger Within Insulator
Development Model – Heat Exchanger Within Insulator For personal use only › Higher Permeability › Chemically Stable › Lower Fracc Challenge? › Mesoproterozoic metasediments – bedding / joint surfaces = Cheaper Power! HEWI Model at Paralana The required heat exchanger is created in the insulating lay
Slide 11: Paralana project track record of achievement
Paralana project track record of achievement For personal use only › Paralana 1B – recorded a high heat flow of 113 mW/m and high temperature gradient to 1800m depth › Paralana 2 well - 4,003m deep injector well successfully drilled › Temperatures of 176˚C at 3,672m measured and 190˚C modeled at 4,0
Slide 12: Paralana project – modeled economic assumptions
Paralana project – modeled economic assumptions Key Economic Assumptions: For personal use only › Temperature of 190˚C modeled at depth of 4,000m › Flow rate of 75 litres per sec – considered most conservative in sector › Net output per production well of 3.75 MW based on flow, inclusive of parasiti
Slide 13: Paralana Project – commercial / market overview
Paralana Project – commercial / market overview › For personal use only Potentially commercially viable at all stages of development › Close (10kms) off grid local customer (5-30MW) – then expand to on grid development (300 MW) › Transmission options for connection to market – potential growth areas
Slide 14: Impact of Carbon pricing – Australian emissions
Impact of Carbon pricing – Australian emissions (source SKM/MMA) For personal use only Medium action Core policy High price 2011 Emissions 350 Core policy means carbon pricing 300 assumptions as per legislation 250 200 Emissions (Mt) 150 100 50 0 2016 2028 2040 2011 2012 2013 2014 2015 2017 2018 201
Slide 15: Impact of Carbon pricing – Australian wholesale electricity price
Impact of Carbon pricing – Australian wholesale electricity price (source SKM/MMA) For personal use only Medium action Core policy High price 250 Price in the graph below is for electricity only and Core policy means carbon pricing excludes the price of RECs, but Renewable Project assumptions as per
Slide 16: Paralana project – target revenues with electricity and RECs
Paralana project – target revenues with electricity and RECs Off grid market – next five years For personal use only › Aim to match current off-grid pricing in local market over the next 5 years › Bundled price for sale of output black and RECs expected to be > $140/MWh due to current high off grid
Slide 17: Impact of Carbon pricing – State wholesale electricity prices
Impact of Carbon pricing – State wholesale electricity prices (source SKM/MMA) For personal use only Tasmania South Australia Victoria New South Wales Queensland SWIS Price - STEM only Darwin 250 Based on core policy which means carbon pricing assumptions as per legislation 200 150 $/MWh 100 50 0 20
Slide 18: Impact of Carbon pricing – Australian power generation mix
Impact of Carbon pricing – Australian power generation mix (source SKM/MMA) For personal use only 450 Geothermal energy is expected to be largest source renewable energy in the mix by 2050 – 400 with 22% of the Australian electricity market 350 300 Solar/PV Geothermal 250 Biothermal Wind TWh Hydro e
Slide 19: Impact of Carbon pricing – South Australian power generation mix
Impact of Carbon pricing – South Australian power generation mix (source SKM/MMA) For personal use only Coal Natural gas Hydro-electric Wind Biomass Solar/geothermal 60 Based on core policy which means carbon pricing assumptions as per 50 legislation 40 TWh 30 20 10 0 2011 2012 2013 2014 2015 2016 2
Slide 20: Impact of Carbon pricing – Impact on SA generation
Impact of Carbon pricing – Impact on SA generation (source SKM/MMA) For personal use only Base Core Policy 35 Based on core policy which means carbon pricing assumptions as per 30 legislation 25 20 TWh 15 10 5 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 202
Slide 21: Summary and Conclusions
Summary and Conclusions For personal use only › Geothermal energy has the potential to provide large scale base load power at competitive cost › The key challenge relates to demonstration of economic flows › Paralana project is well positioned with a clear path to market at various stages of develop
Slide 22: Summary and Conclusions
Summary and Conclusions For personal use only Australia needs clear and stable policy and regulatory framework for renewable & geothermal energy ›Price on carbon ›Capital funding of projects ›Investment in network connection Federal Government’s new “Securing a Clean Energy Future” – Climate Change
Slide 23: For personal use only
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