The company said it was targeting Hobart as a potential consumer of ‘direct use’ geothermal power, involving the use of hot geothermal waters for industrial heating and drying.

Following the acquisition of SEL45-2007, KUTh said it holds 14,171sq.km of exploration licences in Tasmania, making it one of Australia’s largest geothermal landholders.

“Like KUTh’s existing tenement, SEL45-2007 is serviced not only by the Tasmanian high voltage electricity grid but also the low voltage ‘distribution’ or retail grid, which means that, subject to off-take agreements, should KUTh establish electricity generation in the tenement, there would be minimal new infrastructure required for power to be sold to customers,” the company said.

Interpretation of a mid-year gravity survey shows a broad area of granite buried at depths of 3-5km, considered favourable for ‘engineered geothermal power’ or ‘hot rocks’ electricity projects.

KUTh is also undertaking a shallow drilling program across SEL26-2005, to measure heat flow on a systematic basis.

This program is expected to be extended to the newly-granted tenement.