ASX-listed geothermal hopeful Geodynamics has signed a deal with Gulkula Mining – a subsidiary of Gumatj Corporation, which is the commercial arm of the Northern Territory’s Gumatj clan – to form a 50/50 joint venture to investigate the potential for a direct heat geothermal project on the Territory’s Gove Peninsula.
The deal, announced today, will investigate the potential to deliver heat to the Rio Tinto-owned Pacific Aluminium alumina refinery – allowing the refinery to reduce its fuel oil consumption, cut its carbon emissions, and potentially deliver improved long-term operating cost and enhanced sustainability for the bauxite refinery at Gove.
In a release to the ASX, Geodynamics said that initial exploration studies had identified the presence of heat producing granite formations on the Gove Peninsula that may host a commercially viable large-scale direct heat resource.
The company says these granites are shallower and lower temperature than the granite formations it has been developing at Innamincka in South Australia’s Cooper Basin, but will allow them to apply the skills and leverage experience gained from their Enhanced Geothermal Systems (EGS) geothermal project.
As we reported last month, Geodynamics’ Habanero 4 well, in the Cooper basin – regarded by some as the flagship well of Australia’s hot dry rocks geothermal ambitions – has run across some technical issues, causing several weeks of delays and several millions of dollars in cost over-runs.
Origin Energy, which has a 30 per cent interest in the Innamincka Deeps joint venture, has declared it will not put in more funds over the project’s $48.5 million budget, forcing Geodynamics to meet the extra payments, currently estimated at nearly $3 million.
Exploration work for the Gove Peninsula Geothermal Project will begin with preliminary surface studies, comprising geological field work and temperature gradient measurements prior to an initial exploration drilling program to assess the viability of geothermal heat supply.
