Ptr Minerals Limited · ASX:PTR
Ptr Minerals — Petratherm — LINWAR Securities Renewable Energy Briefing 2007
43 slides from Ptr Minerals's conference presentation, Jul 26, 2007
Slide 1: ASX Release: Petratherm uniquely positioned in geothermal sector
ASX Release For personal use only PETRATHERM LIMITED ABN 17 106 806 884 PETRATHERM UNIQUELY POSITIONED FOR SUCCESS IN THE AUSTRALIAN AND INCREASINGLY GLOBAL GEOTHERMAL ENERGY SECTOR Hot rock developer, Petratherm Limited, (ASX : PTR) says the Company has entered the new financial year uniquely posit
Slide 2: ASX Release continued: key points of the address
• Petratherm’s commencement of deep well design and rig selection process for the Paralana Project using Australian Drilling Associates and US geothermal energy experts Global Power Solutions. For personal use only • First mover advantage in Spain with projects near the large markets of Madrid and B
Slide 3: ASX Release continued: Paralana ingredients for success
Petratherm a $5M REDI Grant towards developing the HEWI Model at the Company’s flagship Paralana Geothermal Project site near Leigh Creek in South Australia. • The prospects for the two Spanish projects are very encouraging. This For personal use only assessment was made following visits to the site
Slide 4: ASX Release continued: transmission network solutions
For personal use only • The planned delivery of large-scale power (up to 520MW) has taken into account the capacity of the market to digest large increments of generation competition from other geothermal and indeed traditional sources of power generation and the cost of delivery (transmission netwo
Slide 5: ASX Release continued: strategic approach and media contact
(NER). Accordingly, there is unique opportunity for substantially reducing the overall project network connection costs. • Similar opportunities exist for the radial network connection where the prime cost reduction occurs through the utilization of a single electricity tower For personal use only c
Slide 6: LINWAR Renewable Energy Briefing
petratherm For personal use only LINWAR Renewable Energy Briefing “Building a portfolio of quality geothermal energy projects – Australia and Overseas” Presented by: Jonathan Teubner, Business Development Manager Sydney, July 26 2007 Explorer and Developer of Geothermal Energy
Slide 7: Presentation Outline
Presentation Outline For personal use only • Key Messages • Corporate Overview • Petratherm’s Unique Exploration and HEWI Models • Key Projects – Australia & Overseas • Economics of Geothermal Energy Generation • Geothermal Energy and Electricity Markets • SA Electricity Market and Geothermal Projec
Slide 8: 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 9: 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% • Recent successful capital raising - Placement & SPP, $6.3 M • Shares on Issue - 57,750,000 – Current Price of $0.97 • Market Capitalization of $ 56 mi
Slide 10: 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 11: 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 12: Enhanced Geothermal Systems
For personal use only Enhanced Geothermal Systems
Slide 13: 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 14: Petratherm's SA Projects
For personal use only Petratherm’s SA Projects
Slide 15: Paralana Hot Springs
Paralana Hot Springs – 620C For personal use only
Slide 16: Outstanding Thermal Resource
For personal use only Outstanding Thermal Resource petratherm
Slide 17: 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 18: 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 19: 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 20: Europe - Extrapolated Temperatures at 5km Depth
For personal use only Europe - Extrapolated Temperatures at 5km Depth Lithuania German basin Eger Cornwall Rhine graben Urach Molasse Pannonian basin Massif central basin Limagne Provence Greek grabens Tuscany Latium Catalonia Turkey Campidano Source Hurtig et al., 1992 modified by GEIE EMC, 2000 pe
Slide 21: Madrid Project – Madrid Basin
Madrid Project – Madrid Basin • Tenement Area 300 km2 , located 35 kms NNE of Madrid For personal use only • Major electricity and water infrastructure, > 5000 MW of capacity • Known low enthalpy aquifer (85oC) resource at 1500m and very high flow rates. • High heat production granites outcropping i
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 Conventional Geothermal Project
Tenerife Conventional Geothermal Project – Canary Islands, Spain For personal use only • 10,000 MW of conventional geothermal worldwide • Known technology, lower risk and earlier development • Volcanic heat source – typically >300°C at 2kms • Tenerife population up to 1.5M people during peak season
Slide 24: China – AP6 Program
China – AP6 Program For personal use only • Asia Pacific Partnership Approved Project (AP6) with the 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 – Heat Flow Map
China – AP6 Program For personal use only Heat Flow Map of China Source: Hu Shengbiao, He Lijuan and Wang Jiyang. 2000.
Slide 26: 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 approval to investigate China’s Hot
Slide 27: Petratherm Project Summary
Petratherm Project Summary • Build on the Company’s key strength of exploring for heat and adding project development to its capabilities and seeking to continually For personal use only lower costs and risks • Continue to expanding its portfolio of quality projects in Australia and Overseas (Spain
Slide 28: Economics of Geothermal Energy Generation
Economics of Geothermal Energy Generation 1600 Brown Coal PF 420MW (CF85%) For personal use only Brown Coal PF 420MW (CF85%) + GS 1400 Black Coal PF 420MW (CF85%) Black Coal PF 420MW (CF85%) + GS 1200 CO2 emissions kg/MWhr Black Coal Supercritical 860MW (CF85%) Brown Coal Gas Combined Cycle 130MW (C
Slide 29: Long Run Costs of Renewable Energy Technologies
Long Run Costs of Renewable Energy Technologies For personal use only • Advantages of Geothermal Energy include: •Large scale base load •Large resources and reserves •Expected to be lowest cost renewable energy source Extract from McLennan Magasanik Associates independent report “Renewable Energy –
Slide 30: Geothermal Energy and Electricity Markets: International
Geothermal Energy and Electricity Markets For personal use only International • 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 For personal use only • Review of the Energy White Paper and current policy on renewable and low emission energy technologies – Emissions Trading and Renewable Energy • Strong support for geothermal energy due to competitive, large scale, base load
Slide 32: Australian Geothermal Licenses and Applications
Australian Geothermal Licenses, Applications and License Application Areas For personal use only
Slide 33: 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 34: 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 35: 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 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) – 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-scale, long te
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
Petratherm — LINWAR Securities Renewable Energy Briefing 2007 on 6ix