Adelaide based Petratherm Limited has won the right to help China best determine if, how and where power generated from ‘hot rocks’ geothermal energy can help service that country’s emergence as the world’s fastest growing electricity market.

The decision to award preference and potential government funding for the work to Petratherm has been backed by the federal government and key countries in the Asia Pacific Partnership, according to Managing Director, Terry Kallis.

These cover the six member governments of the Asia Pacific Partnership on Climate and Clean Development (AP6) - the United States, China, India, Japan, South Korea and Australia.

“Petratherm is the only geothermal energy company to secure the AP6 Project endorsement”, Kallis said. “It will see Petratherm on the ground in China over the next nine months identifying hot rock sites.”

He said Petratherm plans to take an equity position in those sites it thinks offer the best potential to host commercial based power generation from hot rocks. “The partnership aims to implement practical projects which contribute tangible improvements to climate and clean development in China”, Kallis said.

“This is a breakthrough consistent with Petratherm’s strategy to identify opportunities in Australia and internationally where both the local geology and renewable energy policy framework are conducive for commercial geothermal energy projects.”

Under the AP6 endorsement, Petratherm will study the geothermal prospectivity of China to identify high quality, commercial geothermal projects. The work will be undertaken in co-operation with Chinese geological institutions, provincial governments and local energy utilities.

Petratherm management personnel recently attended the Australia – China Climate Change Partnership Renewable Energy and Energy Efficiency Business Mission to Beijing and Xian, led by federal Environment Minister, Ian Campbell. “This was a turning point for Petratherm, as it secured the company a range of contacts and information”, Kallis said. These included:

• Access to the necessary geological information on China;

• Potential joint venture partnering with companies that have already successfully

• entered the renewable energy market in China, and

• Determining the legal framework relating to renewable energy, regulatory arrangements and related policy initiatives relevant to geothermal energy projects in China.

Petratherm has signed a Memorandum of Understanding with Heathgate Resources, operator of the Beverley uranium mine in South Australia, for the mine to potentially take future electricity supplies from any successful commercialisation of the Paralana project 11 km from the mine.