The company emphasised that this was not a ‘hot fractured rock’ project.
“Conventional geothermal power is derived from naturally occurring sources of hot water in naturally permeable geological formations,” managing director Roger Massy-Greene said.
“It is capable of delivering reliable and renewable baseload energy with no emissions and a low environmental impact. There are currently around 250 conventional geothermal electricity plants worldwide producing 8900MW.”
Scopenergy says the world’s largest geothermal consultancy, US-based GeothermEx, has estimated the generating potential of these leases at more than 1,500MW.
“The company’s aim is to be generating 50MW by 2009 and thereafter to expand its generating capacity to 250MW in the medium-term,” managing director, Roger Massy-Greene said.
But the construction of the stage one A$160 million 50MW power station still depends on whether Scopenergy’s reservoir proving program is successful next year.
The company has secured 2,634 square kilometres of geothermal exploration licences in the Limestone region of the Otway Basin, which it believes is Australia’s most prospective region for conventional geothermal power.
Its leases are close to customers and the regional power transmission network, which will reduce capital costs, transmission losses, development lead times and risks of its stage one development, according to the company.
Greene said the contract with Snowy Hydro would underpin development of the project, which has the potential to generate large supplies of reliable baseload power into the state and national electricity markets.
He predicts the agreement will underwrite about half the revenue from the plant, with the balance to be derived from non-contracted power sales, as well as the sale of renewable energy certificates (RECs) and other carbon credits.
“The PPA demonstrates the strong demand for reliable, baseload supplies of renewable energy and provides a sound platform for the development of the Limestone Coast geothermal project,” Massy-Greene said.
“The station will use water from 4km deep, and return all of the water to the reservoir after extracting the heat. There won’t be any emissions of anything to the atmosphere and the station won’t disturb its neighbours.”
