Geothermal Energy in the Perth Basin, Australia Comparisons with the Rhine Graben

Abstract

Unlike the Rhine Graben where commercial scale geothermal power and direct heat projects have been operating for some time, geothermal developments in the Perth Basin are only at the gestation stage. Over the next two years Green Rock Energy Limited plans to carry out a commercial demonstration project in Perth which is likely to be the first commercial scale direct heat project of its type in Australia. This has only become possible since July 2009 when Green Rock Energy along with the University of Western Australia was awarded the first rights to explore for and produce geothermal energy in the state of Western Australia. This followed the introduction of the State’s first geothermal legislation in 2008 when the Petroleum Act was amended to include geothermal energy. This direct heat project is designed to prove the concept of recoveering geothermal energy from hot sedimenary aquifers in the central Perth Basin to directly cool and heat buildings in the Perth Metropolitan area. To assist the Company to achieve this objective in December 2009 the Australian Government announced that it was offering Green Rock Energy Limited a grant of $7 million from its Geothermal Drilling Program to assist the funding of the Company‘s project to air-conditon the main campus at University of Western Australia in the Perth Metropolitan area. The funding agreement was signed in September 2010. One week later the Western Australian State Government announced that Green Rock Energy was to be offered a further grant of $5.4 million for the same project. Funds from both Governments will be provided in stages and each Government requires the Company to provide the balance of required funds from other sources. Financing of geothermal exploration projects in Australia may differ from typical funding of projects in Germany. Most funds in Australia are obtained from shareholders in companies listed on the Australian Securities Exchange.