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theflasherman

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GDY a good long term solid stock, and leading the industry. The company even went out to buy their own drill rig. As drilling into granite is not an easy thing to do. This company had come along way and has lots of experience in the team. Rig due to be delivered in June/July after which drilling can begin again ! Watch this space !
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Personal Opinion only - please DYOR before buying. Geothermal power generation is used successfully in other parts of the world. The appeal to me in buying PTR was its environmental cleanliness and relative simplicity. It also does not need the huge amounts of water required by other methods. This is fantastic as we need to set up in a desert environment. I can see why mining companies are interested because the power can be generated almost on site. Selling the excess power into the grid for domestic use keeps the other providers on their toes as well, and that has to be good for competition. The emergence of new industries is a fantastic way to generate employment and keep the economy growing. I really hope that our State and Federal Governments begin to see these companies as real viable suppliers. With the right support and incentives to get them established I think the future of geothermal companies looks very bright. This needed support has to include the mining industry itself with some political resistance to uranium mining still to be overcome.
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AGM (Allegiance Mining) has just applied to explore geothermal energy down in Tassie. They will be producing Nickel around October 07 and if they can get this geo off the ground, then their production costs will be even lower. Worth a look!

 

DYOR

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Lihir Gold (LHG) in New Guinea have successfully established a geothermal plant which has cut fuel oil costs substantially. Are now expanding the geothermal option.

 

I wonder if NZ has established these types of plants .......... would make sense.

 

Cheers

J

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It is worth looking up Wikipedia on Geothermal Power. It says "Geothermal power is generated in over 20 countries around the world including Iceland (producing over 50% of its electricity from geothermal sources in 2006), the United States, Italy, France, New Zealand, Mexico, Nicaragua, Costa Rica, Russia, the Philippines (production capacity of 1931 MW (2nd to US, 27% of electricity), Indonesia, the People's Republic of China and Japan."

 

My impression is that most of the current generation of geothermal power stations exploit active volcanic areas where naturally generated steam can be tapped with relatively shallow drill-holes.

 

It is important to differentiate between geothermal power being generated in volcanically active zones such as Lihir, Wairakei in New Zealand and Iceland, and geothermal power to be generated from 'hot' rocks at significant depths. For example, I would need to check, but I think that the drill-holes tapping geothermal power at Wairakei are probably only a few hundred metres deep, and the water injection to make steam is a natural process.

 

By contrast, some of the 'hot rock' players are drilling down to depths of 4000m. There are significant technical challenges in drilling to such depths, finding a fissure that can be used to transmit water, "fraccing" that fissure to increase transmissability, drilling another hole to tap into the same fissure some distance away to capture the water injected and bringing it to the surface to generate power are not inconsiderable. It may be possible, but it doesn't surprise me that considerable challenges have been encountered, with blowout of costs and timetable overruns etc.

 

A further factor that applies in the case of at least some of the players is the distance of the project from sizeable markets. High voltage transmission lines are expensive infrastructure, and there are considerable line losses that need to be taken into account.

 

My understanding of the economics is that geothermal power in these situations is problematic, even if it can be made to work technically and REL subsidies remain available.

 

It may be a different matter at the Allegiance project, but as a shareholder I would want them to focus on the main game and not get diverted onto a potentially risky project unless they are confident that the project is in the 'easy' category rather than the 'difficult' category.

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you make some sound points mondo45, especially about the shallow depths of volcanic-sourced geothermal energy and high voltage transmission lines. I am just a lay person regarding geothermal but am an investor in Geodynamics_GDY and am aware they found, near Innamincka, extremely hot pressurised artesian basin WATER at depth. http://www.sharescene.com/html/emoticons/devilsmiley.gif This effectively cancels out the bulk of the huge costs you described for injecting water and bringing it to the surface at the second drill site. I seem to recall a statement on TV by GDY's CEO that water would gush to a height of 35 kilometres if the well was unplugged.

Most of Australias' power transmission infrastructure has been built by state and federal gov'ts so why aren't GDY and other geothermal companies being offered the same deal or at least considerable recompense for connecting renewable base load power to the electricity grid.

Incidentally, Birdville just across the SA border in Qld has been using hot artesian water for its geothermal heat exchange power station which has supplied its town electricity needs for decades.

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In reply to: gravelman on Sunday 13/05/07 12:57pm

G'day Gravelman

 

If you haven't already seen it there is a good map of the geothermal sites in South Australia on page 22 of Petratherms announcement from the 1st of May.

Gives you a good idea of who is drilling where and proximity to power lines.

Having compared the six or so companies in this area, I am leaning toward PTR because they appear to have the simplest strategy to get revenue via a small generator supplying the Beverly uranium mine with clear plans to increase capacity from there. They are also pursuing prospects in Spain (close to major population centres) and China.

To this point they seem to be on shedule, whereas others have been hitting snags. That's not to say that other companies like GDY don't offer better long term value..they have the Kallina cycle tech and the thermal resource is hotter, but there is this question of how are they going to make a dollar being so far from the grid?

 

Good luck with your research, its definitely an area with potential but also risk considering how these companies have appreciated since listing.

 

Anyone know of a geothermal company looking to list? Might be better to get in on the ground floor on one of these than get onto some of existing ones just now.

 

I read on HC that a company called granite power was intending to list in July having got a lease to develop a thermal resource under coal seams near Melbourne, but haven't been able to find anything on it as yet.

 

Barra

 

 

 

 

 

 

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