Meanwhile the SA gov’t is keen to exploit this natural resource but to what degree I am not sure.
I’ve been a shareholder of Geodynamic’s since late 2002 when they listed and have been to most, if not all of the meetings. The former director of Geodynamic’s, Bertus de Graf has commented before that Mike Rann is heavily behind the HFR industry and has offered to do anything for them, except inject any money . Likewise Minister for Mineral Resources Development, Paul Holloway has been talking up the industry since 2003. He opened the 2003 SA conference with comments such as :
“The ability of industry to innovate and promote new technology is exemplified by the experimental Hot Dry Rocks Project. I am quietly confident that this project, dependent on high heat flow of basement rocks in the Moomba – Gidgealpa region, will be the beginning of new era of clean green energy production for South Australia. This project has the potential to provide a significant proportion of South Australia’s energy requirements. I await the results from the first geothermal well, the 4.5 km hole Habanero 1, with great interest.”
And was back in 2004 with comments including :
“It is also worth noting that South Australia is now a hotbed of exploration for geothermal energy – with investment coming from Geodynamics, Minotaur, Scopenergy, Perilya and Green Rock Energy. There opens some chance for an emissions free energy future – not just for the State – but for the nation. Some of you may have noticed the recent announcement by Queensland’s Premier Peter Beattie of Geo-thermal licences. I’m sorry Pete, but you’re three years behind us. Not only that, Geodynamics already have a well near Inniminka that I am told is coming along nicely.”
but again, no money . . .
I do not think this type of exploration and developement should be funded entirely by the private investor. The government needs to inject big money into it. Perhaps Rudd will be hot rock friendlier than Howard. If it takes off it can supply Australia energy needs for 800 years! And clean and green to boot.
Certainly, it is unfair if the coal industry or the coal geosequestration clan gets lots of money, but not the HDR industry. I think one of the arguments used by the current government is the technology is premature, but isn’t geosequestration too?
However I don’t see why the industry needs any funding. If the economics prove as good as the modeling then many of these companies (GDY, PTR, GRK, GHT, EDE, TEY) will have some nice bankable resources. With that, they should be able to fund developments from debt. Plus, there appears to be no shortage of quality backers for the industry. HDR pioneer, Geodynamics is backed by Origin Energy and Woodside.
The geosequestration industry, on the other hand, may not be economically viable, and hence will require government assistance to get it off the ground.