Ptr Minerals Limited · ASX:PTR
Ptr Minerals — Petratherm — SA Resources Industry Development Board (February 2009)
32 slides from Ptr Minerals's conference presentation, Feb 5, 2009
Slide 1: MD presentation to the SA Resources Industry Development Board
ASX Release PETRATHERM LIMITED For personal use only ABN 17 106 806 884 MD presentation to the SA Resources Industry Development Board Petratherm’s Managing Director, Mr. Terry Kallis presented yesterday to the SA Resources Industry Development Board on the state of the geothermal industry in South
Slide 2: Status of Geothermal Energy in SA
For personal use only 4 February 2009 Presented to: SA Resources Industry Development Board Status of Geothermal Energy in SA Presented by: Terry Kallis - Managing Director Petratherm Limited Explorer and Developer of Geothermal Energy
Slide 3: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Petratherm Limited (Petratherm). The information contained in this presentation presentation is a professional opinion only and is given in good faith. Certain information in this document has been derived from third parties and
Slide 4: Presentation Outline
Presentation Outline For personal use only • Corporate Overview • Key Messages • Global context for renewables/geothermal • Overview of Australian Geothermal Energy industry • SA geothermal energy sector • Challenges for geothermal energy projects • Potential solutions • Progress reports on selected
Slide 5: Corporate Overview
Corporate Overview Key Statistics For personal use only Madrid & China – Exclusive Barcelona ‐ Direct exploration ¾ Current shares on issue – 57.9m (plus 13.77 agreement heat, EGS and m options) hydrothermal ¾ Market capitalization ‐ $21.5m (at share price of $0.37) ¾ Cash ‐ $3.3m ¾ Major shareholde
Slide 6: Key Messages
Key Messages • Geothermal energy has the potential to provide large scale, base For personal use only load and low cost renewable energy. • Australia has the key ingredients for developing successful EGS projects – high heat producing granites, continent under compression, strong commitment from gov
Slide 7: Global Context for Energy & Renewables
Global Context for Energy & Renewables (extract PTR Business Plan - December 2007) For personal use only • Operating in an uncertain global economy and with more volatile financial markets - European economies expected to slow, Asian economies to continue to grow strongly, Australian economy to rema
Slide 8: Drivers - The Promise of Geothermal
For personal use only Drivers - The Promise of Geothermal MIT (Tester, et al 2006) • 100 GWe hot rock power in the USA by 2050 • ~13.7 billion PJ resource to 10 km. • 130,000 X annual primary energy use in the USA
Slide 9: Drivers - The Promise of Geothermal
Drivers - The Promise of Geothermal For personal use only Indicative Resource Map Australia’s hot rock energy 150oC to 5km ~ 1.2 billion PJ ~20,000 X annual primary energy use in Australia Source: Geoscience Australia (2007)
Slide 10: 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 11: Long Run Costs of Energy Technologies
For personal use only Long Run Costs of Energy Technologies IGCS = integrated gas combined cycle Total renewable cost envelope CCS = carbon capture and storage SCPF = supercritical pulverized fuel (coal) NGCC = natural gas combined cycle vs. coal, gas and nuclear cost. Extract from McLennan Magasani
Slide 12: MMA Report on Geothermal - Findings
MMA Report on Geothermal - Findings • Geothermal energy expected to build up to 2,200 MWs of base- For personal use only load capacity by 2020; • An estimated $12 billion would be invested to develop that capacity; • Represents up to 40% of the Federal Government’s 2020 Renewable Energy target of 45
Slide 13: Renewable Energy Policy & Geothermal
Renewable Energy Policy & Geothermal • Federal Labor Government Clean Energy Plan to ratify For personal use only Kyoto, Emissions Trading Scheme, 20% Renewable Energy target by 2020, $485 M Renewable Energy Fund ($50 M drilling initiative fund - 7 projects, demonstration project funding) & $150 M E
Slide 14: Australian Geothermal Energy Association
Australian Geothermal Energy Association The national industry association for the Australian Geothermal Energy For personal use only Industry AGEA’s Vision. Geothermal energy providing the lowest cost emissions-free renewable base load energy to Australian homes and businesses for centuries to come
Slide 15: Australian Geothermal Energy Group (AGEG)
Australian Geothermal Energy Group (AGEG) AGEG’S VISION: Geothermal resources to For personal use only provide the lowest cost emissions-free renewable base load and direct use energy for centuries to come. • Currently 88 members and growing • Includes all companies with geothermal licences, all Fed
Slide 16: Geothermal Industry - Challenges
Geothermal Industry - Challenges Cost Drivers For personal use only • Temperature • Drilling Depth • Flow Rate • Network Connection • Generation Plant High up front costs – drilling, fraccing, connection, plant (low O/M + no fuel costs) petratherm
Slide 17: Growth of Australian EGS Industry
Growth of Australian EGS Industry For personal use only Dec 2008 GELS / GELAS Snapshot Aust. 367 S.A. 273 Expenditure Aust. > $1000 Mill S.A. ~ $ 700 Mill Geothermal well Exploration licence • 48 Companies Exploration licence application Acreage offered for work program bids • 10 ASX listed
Slide 18: Geodynamics/Origin/Tata Power/Sentient-SunPower and other explorers
Geodynamics/Origin/Tata Power/Sentient-SunPower ¾2003-5: Proved flow of geothermal energy with Habanero 1 & 2 ¾2007-8: Habanero 1 - 3 closed loop flow tests, Jolokia 1 drilled. Geothermal Drilling ¾Next: 1 MW demo, Savina 1 and HOTROCK50 project Petratherm/Beach Petroleum/TRUenergy For personal use
Slide 19: Growth in Australian Hot Rock Projects
Growth in Australian Hot Rock Projects 1000 500 - Indicative $200+ M for ONE 40MWe Demo plant. use only 900 450 800 ~ $200 million spent to date 400 700 350 Expenditure AUD$million No. of GELs and GELAs 600 300 For personal 500 250 400 200 300 150 200 100 100 50 0 0 2000 2001 2002 2003 2004 2005 200
Slide 20: Drivers - Govt. Legislation and Support
Drivers - Govt. Legislation and Support 1. Geothermal Tenure - SA, Vic, Tas, NSW, QLD, WA ( and NT For personal use only soon) 2. RECS, NGACS, VRECS, Carbon Schemes 3. State and Federal Govt. grants ~ $100 Million since 2000 4. Geothermal Industry Development Framework – COAG Initiative 5. Australia
Slide 21: Hot Rock Projects in South Australia
Hot Rock Projects in South Australia – 31 Dec 08 • 28 companies in the hunt in 273 licences on variety of plays covering >125,683 For personal use only km2 9 Geodynamics 9 Tri-Star Energy 9 Petratherm 9 Clean Energy Australasia South Australian 9 Geothermal Resources 9 Osiris Energy Heat Flow An
Slide 22: 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 23: 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 24: Necessary Ingredients
Necessary Ingredients… …to successfully take a geothermal project to market • Support from financially strong For personal use only • Permitting JV partner(s). • Land access. • Government funding support. • Government support and incentives. • Carbon trading schemes. • Access to market. • Above and
Slide 25: Challenges for EGS Projects
Challenges for EGS Projects • Securing a quality site – the three locations - resource, market, permits/approvals – optimizing economics in a competitive market. For personal use only • Confirming the quality of the potential resource – temperature differential, stress regime / permeability. • Deep
Slide 26: Transmission Connection - Meshed
Transmission Connection - Meshed For personal use only petratherm
Slide 27: Transmission Connection - Enhanced Meshed
Transmission Connection – Enhanced Meshed For personal use only petratherm
Slide 28: Source: Geodynamics Report to Shareholders 2008
For personal use only Source: Geodynamics Report to Shareholders 2008
Slide 29: Paralana 2009 Development Plan
For personal use only Paralana 2009 Development Plan • Second Quarter 09 First Deep Well to ~ 4 Kms • Well testing and stimulation program • First Quarter 2010 Second Deep Well Heat Exchanger Within Insulator (HEWI) Model petratherm
Slide 30: World's First Commercial EGS Plant
World ’s First Commercial EGS Plant World’s Landau Germany For personal use only • Opened Oct. 2008 • 155OC, 60 l/s • 3 MWe + heat • Expanding to 8MWe • ORC Cycle • Cost $20 M Euro
Slide 31: Conclusion
Conclusion • Geothermal energy has the potential to provide large scale, base For personal use only load and low cost renewable energy. • Australia has the key ingredients for developing successful EGS projects – high heat producing granites, continent under compression, strong commitment from gover
Slide 32: Thank You
For personal use only Thank You petratherm ASX Code: PTR www.petratherm.com.au Phone: (08) 8274 5000
Petratherm — SA Resources Industry Development Board (February 2009) on 6ix