THE BOURSE WHISPERER: Geothermal play Green Rock Energy has received notice from Western Australia Minister for Environment and Water Bill Marmion that its application for Low Emissions Energy Development (LEED) funding for its Mid West Geothermal Power Project has been successful.
Green Rock had applied for, and has received all of, $5.38 million.
The company said the success of the application will strengthen the case Green Rock has made to the Commonwealth’s Emerging Renewables Program which puts a strong emphasis on State support.
“This announcement represents a substantial step towards commercialising the very large hot sedimentary aquifer geothermal resources in our Mid West exploration permits,” Green Rock Energy executive chairman Richard Beresford said in the company’s announcement to the Australian Securities Exchange.
“We look forward to working with the State Government so that geothermal power can make a significant contribution to the State’s electricity demand.
Green Rock Energy and New World Energy Mid West permit areas. Source: company announcement
“We consider the project to be a strong contender for the Commonwealth’s Emerging Renewables funding and our objective is to have the majority of at least the first well costs covered by LEED and Emerging Renewables Program funds.
“This would address the lack of private investor appetite in Australia for the drilling necessary to demonstrate commercial production of geothermal energy.
“However, once demonstrated in the Mid West, we are confident that industry and utility investors will recognise the value of the very large geothermal resource and its proximity to existing power infrastructure and a rapidly-growing energy market in the Mid West Region.”