Torrens said today that it had specifically targeted the Port Adelaide area – which includes the industrial suburbs of Gillman, Osborne and Wingfield – as it is well known for its high heat flow, and its proximity to Pelican Point, which the company believes is a suitable location for a future desalination plant.

Chief executive Chris Matthews said this was the first geothermal exploration licence to be granted to a company in the Adelaide metropolitan area.

“An added bonus is the fact the licence area is also central to South Australia’s main electricity supply infrastructure and industry, which will enable us to easily and cost-effectively connect into the national electricity grid if our project is successful,” he said.

“This provides us with a significant commercial advantage over other companies exploring in areas that are unsupported by current electricity infrastructure.”

Torrens Energy said it would immediately start further research in its licence area to support evidence that the region has strong potential to generate geothermal energy. The company intends to start exploration drilling in about 12-18 months.

This follows independent heat-flow modelling commissioned by the company early this year, which used temperature measurements taken from bore holes in the vicinity of the licence area.

The modelling showed that heat flow – the amount of energy flowing from beneath the surface – was around 30% above the global average, with modelled temperatures above 200°C at 5000m depth.

Matthews said the exploration licence grant did not approve any drilling in the area, which also included parts of the Adelaide Dolphin Sanctuary and the Torrens Island Conservation Park.

Additional approvals by the State Government – including adherence to stringent regulatory and environmental guidelines – are required should Torrens Energy wish to undertake a drilling program in the future.

Desalination plant

Matthews said the company was would investigate the possibility of direct geothermal desalination of seawater in the region, given the state’s current water crisis.

He believed Pelican Point – within Torrens Energy’s licence area – was an ideal site for a desalination plant, despite the State Government’s announcement last week that the former Port Stanvac oil refinery was its preferred site for such a project.

“The use of geothermal energy for direct desalination has the potential to improve water security without placing an additional burden on the state’s power supplies, while at the same time reducing our reliance on Murray River water,” he said.

“South Australia has rapidly growing demands for both water and power, and the company believes that coupling renewable sources of power generation with a desalination process is essential to meet the requirements of a sustainable future.”

The permit award follows last week’s announcement that Torrens had discovered excellent heat potential from initial drilling at its hot rock exploration program near Port Augusta, also in South Australia.

The South Australian Government has committed to reducing the state’s greenhouse gas emissions 60% by 2050.