Joint Venture to explore for renewable energy solutions
Origin Energy Limited, Australia’s leading integrated energy company, and Geodynamics Limited have agreed to establish an additional joint venture to explore for shallow geothermal resources in the Eromanga Basin with a focus on developing renewable energy generation. The 50:50 Innamincka Shallows Joint Venture will be operated by Origin.
Origin, Managing Director, Mr Grant King said, “The shallows work complements our existing hot rocks project with Geodynamics in the deeps as the Joint Venture continues to explore the potential upside of the vast heat resources in the granite that is considered the most prospective resource of its kind in Australia.
“Exploring the shallows of the Innamincka tenements will allow us to investigate alternative ways of accessing heat resources.”
Today’s announcement also complements Origin’s 70 per cent interest in a large geothermal exploration tenement with Eden Energy Limited, which is geographically adjacent to the Origin/Geodynamics Innamincka tenements.
The Innamincka Shallows Joint Venture will focus on exploration in the permeable sandstone zones above the granite to depths of approximately 3km. Origin’s existing Innamincka Deeps Joint Venture with Geodynamics (operator), focuses on higher temperature Enhanced Geothermal Systems in the deeper granites to around 5km depths in the region.
The initial exploratory work for the Innamincka Shallows Joint Venture includes the drilling and testing of two slim wells to depths of approximately 2,200m during the next 12 months at a cost of approximately $10 million to assess the viability of geothermal energy production in the Shallows.
Origin will contribute $4.5 million of future project expenditure, in addition to its 50 per cent share of project expenditure for the Innamincka Shallows Joint Venture, in exchange for a 20 per cent increase in its interest in the Shallows area.
|Participants in the Innamincka “Shallows” Joint Venture are:|
|Origin Energy Geothermal Pty Ltd* (Operator)||50%|
|Participants in the Innamincka “Deeps” Joint Venture are:|
|Origin Energy Geothermal Pty Ltd*||30%|
*A wholly owned subsidiary of Origin Energy Limited (ASX: ORG)