Slide 1: Geothermal Energy in Australia – an Overview
petratherm For personal use only Solar Cities Congress 2008, Adelaide, S.A. Geothermal Energy in Australia – an Overview Presented by: Terry Kallis Managing Director Petratherm Limited 20 February 2008 Explorer and Developer of Geothermal Energy
Slide 2: Presentation Outline
Presentation Outline For personal use only • Geothermal Energy Policy in Australia • Engineered Geothermal Systems and Energy Cost Comparisons • Geothermal Energy and Electricity Markets • South Australian Projects • Geothermal Energy Project Economics • Key Challenges for EGS Projects petratherm
Slide 3: Renewable Energy Policy & Geothermal
Renewable Energy Policy & Geothermal • Federal Labor Government Clean Energy Plan to ratify For personal use only Kyoto, Emissions Trading by 2010, 20% Renewable Energy target by 2020, $500 M Renewable Energy Fund including a $50 M drilling initiative fund • The Australian Geothermal Energy Group (A
Slide 4: Engineered or Enhanced Geothermal Systems
For personal use only Engineered or Enhanced Geothermal Systems
Slide 5: Heat Exchanger Within Insulator (HEWI) Model
Heat Exchanger Within Insulator (HEWI) Model EGS - engineered For personal use only geothermal system i.e. underground heat exchanger • Higher Permeability • Chemically Stable • No Potential Radon build up • Lower Risk = Cheaper Power! petratherm
Slide 6: 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 7: Geothermal Energy and Electricity Markets
Geothermal Energy and Electricity Markets Australia For personal use only • Australia has the ideal conditions for EGS – high heat producing granites and a continent that is under compression • Geothermal Energy potential is vast and could meet Australia’s electricity needs for many centuries. The P
Slide 8: 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 • Many players – 33 Yerila 1 Petratherm Companies, 10 ASX Proactive Petratherm Blanche 1 listed Green Rock Eden Paralana 1B Proactive • 2
Slide 9: 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, availability) • Energy Flow Rates (volume, pressure, energy transfer) • Plant Capital Costs and related efficiencies • Connection
Slide 10: 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 11: Challenges for EGS Projects
Challenges for EGS Projects • Securing a quality site – the three locations – resource, market, permits – optimizing economics in a competitive market – primary project risk For personal use only reduction • Confirming the quality of the potential resource – temperature differential, stress regime /
Slide 12: Thank You
For personal use only Thank You petratherm ASX Code: PTR www.petratherm.com.au Phone: (08) 8274 5000
Slide 13: 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% • Around 2600 shareholders • Shares on Issue - 57,850,000 – Current Price of $ 0.88 • Market Capitalization of $ 50.9 million • $6.1 M in cash as at end
Slide 14: Corporate Overview
Corporate Overview • Combined skills and experience of the Board, For personal use only Management, Partners and Consultants capable of delivering successful geothermal energy projects – from underground resource through to market • Portfolio of Quality Projects – four in Australia, five in Spain, C
Slide 15: 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. Engineered Geothermal Systems Prime Cost Drivers • Temperature Differential • Drilling Depth • Flow Rate • Network Connection • Generation Plant Petratherm is seeking to
Slide 16: Heat Exchanger Within Insulator (HEWI) Model
Heat Exchanger Within Insulator (HEWI) Model EGS - engineered For personal use only geothermal system i.e. underground heat exchanger • Higher Permeability • Chemically Stable • No Potential Radon build up • Lower Risk = Cheaper Power! petratherm
Slide 17: Petratherm's SA Projects
For personal use only Petratherm’s SA Projects
Slide 18: Paralana Geothermal Energy JV Project
Paralana Geothermal Energy JV Project Paralana Key Features For personal use only – Excellent thermal resource at shallow depths with stable geological formation - expect good drilling conditions – Close proximity to the “off-grid” Beverley Uranium Mine – $30 M JV with Beach Petroleum and $5 M Feder
Slide 19: Petratherm's Spanish Projects
Petratherm’s Spanish Projects For personal use only Barcelona Almazan Madrid Tenerife Islands Gran Canaria
Slide 20: China – APP Program
China – APP Program For personal use only Heat Flow Map of China Source: Hu Shengbiao, He Lijuan and Wang Jiyang. 2000.
Slide 21: 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