Slide 1: SA Power Conference 2007
petratherm For personal use only SA Power Conference 2007 “Building a portfolio of quality geothermal energy projects – Australia and Overseas” Presented by: Terry Kallis, Managing Director Petratherm Limited Hyatt Regency, 1 November 2007 Explorer and Developer of Geothermal Energy
Slide 2: Presentation Outline
Presentation Outline For personal use only • Key Messages • Corporate Overview • Petratherm’s Exploration and HEWI Models • Key Projects – Australia, Spain & China • Geothermal Energy and Electricity Markets • SA Electricity Market and Geothermal Projects • Geothermal Project Economics and Developme
Slide 3: Key Messages
Key Messages • Petratherm’s key strength lies in its approach to “exploration for For personal use only heat” and its commercial assessment of projects - “location, location, location”. • The approach has resulted in a portfolio of quality projects in Australia and Overseas – first mover in Spain fo
Slide 4: Corporate Overview
Corporate Overview • Established in 2003 and listed on the ASX in July 2004 For personal use only • Major shareholder is Minotaur Exploration – 34%, currently 2600 shareholders • Shares on Issue - 57,750,000 – Current Price of $0.75 • Market Capitalization of $ 43.3 million • $7.5 M in cash as at en
Slide 5: Board & Management
petratherm Board & Management For personal use only Derek Carter Simon O’loughlin Prof. Richard Hillis Chairman Director Dr Lloyd Taylor Director Director Richard Bonython Terry Kallis Donald Stephens Peter Reid Director Managing Director Company Secretary Operations Manager
Slide 6: Corporate Overview
Corporate Overview • Portfolio of Quality Projects – four in Australia, four in For personal use only Spain, China under examination – portfolio under continual expansion – expect 7 to 8 projects in Spain • Projects include Enhanced Geothermal Systems (EGS) and Conventional Projects – products inclu
Slide 7: Petratherm's Exploration Model
Petratherm ’s Exploration Model Petratherm’s “Shallow Hot Rocks close to Market" For personal use only “Hot Rocks” are EGS , i.e. Enhanced Geothermal Systems Prime Cost Drivers • Temperature Differential • Drilling Depth • Flow Rate • Network Connection • Generation Plant Petratherm is seeking to op
Slide 8: Enhanced Geothermal Systems
For personal use only Enhanced Geothermal Systems
Slide 9: Heat Exchanger Within Insulator (HEWI) Model
Heat Exchanger Within Insulator (HEWI) Model EGS - For personal use only enhance/engineer the geothermal system that is underground heat exchanger • Higher Permeability • Chemically Stable • No Potential Radon build up • Lower Risk = Cheaper Power! petratherm
Slide 10: South Australian Heat Flow Anomaly
South Australian Heat Flow Anomaly For personal use only Exceptional target for Geothermal Energy 80% higher heat flow than typical Proterozic crust Heat due to : • Thermally Anomalous Granite (TAG) • Radiogenic Iron Oxide (RIO) petratherm
Slide 11: Petratherm's SA Projects
For personal use only Petratherm’s SA Projects
Slide 12: Paralana Hot Springs – 620C
Paralana Hot Springs – 620C For personal use only
Slide 13: Outstanding Thermal Resource
For personal use only Outstanding Thermal Resource petratherm
Slide 14: Phase drilling Paralana Work Program
For personal use only Phase 3 drilling Paralana Work Program 109oC petratherm Temperature measurements indicate 200 degrees C at 3.6km
Slide 15: Paralana Geothermal Energy JV Project
Paralana Geothermal Energy JV Project • Paralana Geothermal Energy JV Project exhibits the key For personal use only ingredients for success – Excellent thermal resource at shallow depths with stable geological formation - expect good drilling conditions – Proximity to the “off-grid” Beverley Uraniu
Slide 16: Renewable Energy Country Attractiveness Indices
Ranking Country All Renewables Renewable Renewables Infrastructure Index Index Energy 1 Spain 69 80 For personal use only Country 2 USA 67 70 3 Germany 62 56 Attractiveness 4 India 61 66 Indices 5 UK 60 61 6 Italy 58 63 7 France 57 55 8 Portugal 56 63 • Tariffs 9 China 56 59 10 Canada 55 63 • Resour
Slide 17: Wholesale Renewable Power Prices
Wholesale Renewable Power Price’s Price’s cents per KWh (Aus) For personal use only Spain 11.4 – 14.5 USA 10 – 11.5 China 8.6 – 9.5 India 7.8 – 10.1 Australia 7.5 – 8.5 petratherm
Slide 18: Petratherm Espana
Petratherm Espana • Geology is conducive to EGS For personal use only •Expanding Project Portfolio • Strong Corporate Interest • High Electricity Prices • Leading Policy Development • Conventional geothermal and direct use options • Lower Cost and Risk! petratherm
Slide 19: Petratherm Spanish Projects
Petratherm Spanish Projects For personal use only Barcelona Madrid Tenerife Islands Gran Canaria
Slide 20: Madrid Project – Madrid Basin
Madrid Project – Madrid Basin • Tenement Area 300 km2 For personal use only • Location 25KM NNE of Madrid • Major electricity and water infrastructure • Pradillo Well records a bottom hole temperature of 156oC at 3400m • Known low enthalpy aquifer (85oC) resource at 1500m. Very high flow rates. • Hi
Slide 21: Madrid Basin – Direct Heating
Madrid Basin – Direct Heating For personal use only Madrid Tenement Temperature at 1100m (Cuchi et al., En.Geol. 2000) petratherm
Slide 22: Barcelona Project – Valles Basin
Barcelona Project – Valles Basin For personal use only • Adjoining Tenements located 30 kms NNE of Barcelona • Central to major electricity infrastructure, >2000 MW of capacity • Area of known high heat flow • Local hot aquifer sourcing a 115-130oC shallow reservoir at around 1000 metres • High heat
Slide 23: Tenerife Project
Tenerife Project For personal use only • Active Volcanic System • Magma Chamber 3-4 km below surface • Large geochemical data base (ITER) • Off-grid pricing (currently Diesel) • Large load > 800 MW • Gran Canaria Project similar (>800 MW) 20 km petratherm
Slide 24: China – APP Program
China – APP Program • Asia Pacific Partnership Approved Project (APP) with the For personal use only support of the Chinese and Australian Governments • Over 240 recorded geothermal sites • Conventional Geothermal Potential ~1400 MW • Enormous EGS (Hot Dry Rock) Potential • Hot Water and Electricity
Slide 25: China – APP Program: Heat Flow Map of China
China – APP Program For personal use only Heat Flow Map of China Source: Hu Shengbiao, He Lijuan and Wang Jiyang. 2000.
Slide 26: Exclusive Cooperative Agreement in China
Exclusive Cooperative Agreement to identify high prospect geothermal energy projects in China with four Chinese Government Institutions For personal use only • Chinese Geothermal Energy Society • Geological Survey of China • Chinese Academy of Sciences • China Institute of Geo-Environment Monitoring
Slide 27: Petratherm - Key Achievements
Petratherm - Key Achievements • Discovery of world-class heat resource at Paralana, South Australia. For personal use only • Established an MOU with Heathgate Resources to provide their Beverley Uranium Mine with electricity to meet their growing needs. • Secured Federal Government approval and excl
Slide 28: Increasing Shareholder Value
Increasing Shareholder Value • Cost Reduction For personal use only – HEWI Model - shallower wells reducing drilling costs – Competitive sourcing of plant and equipment – “no ties” to a plant manufacturer – “ fit for purpose” – conventional, lower cost plant • Risk Reduction – Initial project select
Slide 29: Petratherm - Share Price History
Petratherm - Share Price History For personal use only petratherm
Slide 30: Geothermal Energy and Electricity Markets – International
Geothermal Energy and Electricity Markets International For personal use only • The global renewable energy market (all forms) represents only 4% of electricity production but is growing at 25% per annum. • Geothermal energy has largest technical potential of all renewable sources (source: World Ene
Slide 31: Geothermal Energy and Electricity Markets – Australia
Geothermal Energy and Electricity Markets Australia • Review of the Energy White Paper and current policy on renewable and low For personal use only emission energy technologies – Emissions Trading and Renewable Energy • Strong support for geothermal energy due to competitive, large scale, base load
Slide 32: SA Electricity Market
SA Electricity Market • SA NEM region electricity demand to require at least 600MW of new For personal use only capacity • Does not include potential increase of over 400MW from Olympic Dam. • Nor the effect of depleting Leigh Creek coal. • Demand requirements will be between 600 – 1,500MW. 2006-07
Slide 33: South Australian heat flow
South Australian heat flow SA Geothermal anomaly Pacific Hydro Habanero 1,2 Geodynamics Projects Eden Eden For personal use only Geodynamics Osiris Proactive Eden Petratherm Yerila 1 • Many players Proactive Petratherm Blanche 1 Green Rock Eden • Large resources Proactive Paralana 1B Torrens • Explo
Slide 34: Geothermal Energy Project Economics
Geothermal Energy Project Economics • Temperature (differential, quality and type of resource) For personal use only • Drilling Costs (depth, size, geological formation) • Energy Flow Rates (volume, energy transfer) • Plant Capital Costs and related efficiencies • Connection and Access to markets •
Slide 35: Geothermal Energy Cost Comparison
Geothermal Energy Cost Comparison 1600 Brown Coal PF 420MW (CF85%) For personal use only Electricity Supply Industry Planning Council Brown Coal PF 420MW (CF85%) + GS 1400 • 6.8% Australia’s base-load from hot rocks Black Coal PF 420MW (CF85%) by 2030 Black Coal PF 420MW (CF85%) + GS 1200 • “signifi
Slide 36: Network Access & Connection
Network Access & Connection For personal use only • Transmission Costs • Transportation losses Ç • Margin Loss Factor • System Stability Ç Ç • Development Approvals, Ç Ç Licensing, Easements and Permits Ç • Network Capacity at connection point Ç = Wind Farm = Best Wind Resource Ç ÇÇ petratherm Trans
Slide 37: Electricity Market & Network Issues
Electricity Market & Network Issues For personal use only • Proximity to market – network connection costs – 132kV or 275kV for large scale and/or distant locations • Network Capital Costs – target around 10% to 15% of total project capital costs. • Market constraints – local, regional, interstate t
Slide 38: Summary – Geothermal Energy Economics
Summary – Geothermal Energy Economics For personal use only • Geothermal Energy Projects have the potential to provide very cost competitive electricity generation • The Australian NEM is competitive market but it is characterized by loosely interconnected regional markets – many constraints • Econo
Slide 39: Paralana Commercialization Plan
Paralana Commercialization Plan For personal use only petratherm
Slide 40: Paralana Commercialization Plans
Paralana Commercialization Plans For personal use only • Staged local expansion from 7.5 MW to 30.0 MW (from end 2009/early 2010) – network capital costs range between 8% and 10% of total capital costs – uniquely positioned with a willing potential customer at “off grid” prices • Realistic large-sca
Slide 41: Challenges for Australian EGS Projects
Challenges for Australian EGS Projects • Securing a quality site – the three locations – optimizing economics in a For personal use only competitive market. • Confirming the quality of the potential resource – temperature differential, stress regime / permeability. • Deep drilling of wells – well de
Slide 42: Summary
Summary • Petratherm’s key strength lies in its approach to “exploration for heat” and its commercial assessment of projects – understanding For personal use only the “three locations”. • The approach has resulted in a portfolio of quality projects in Australia and Overseas – first mover in Spain fo
Slide 43: Thank You
For personal use only Thank You petratherm ASX Code: PTR www.petratherm.com.au Phone: (08) 8274 5000