GREENEARTH Energy has signed a $25 million funding agreement with the Victorian state government to go towards the Geelong Geothermal Power Project.
The $25 million Victorian Government grant funding was awarded in December 2009 under the government’s Energy Technology Innovation Strategy (ETIS).
The funding was awarded to assist two stages of the geothermal project. The first $5 million stage was for establishing Proof of Resource, and a further $20 million awarded for Stage 2 12MWe demonstration upon a successful Proof of Concept.
Proof of Resource will involve the drilling of an initial well to a depth of approximately 4,000m and conducting a short term flow test to analyse the results in terms of temperature, geothermal fluid flow rate and formation permeability. The $5 million grant funding will be applied to assist the completion of this stage.
Upon the establishment of suitable resource parameters, a second well will be drilled to produce a “couplet” and establish Proof of Concept and allow for an extended flow test to allow extensive analysis of the commercial viability of the resource and construction of a 12MWe geothermal demonstration plant.
Greenearth Energy is also discussing with Alcoa of Australia regarding areas of potential collaboration outlined in the Memorandum of Intent between the companies.