Although the results of the study are encouraging and support a 4.95-MWe geothermal development in the Longreach region, CeraPhi concluded that geothermal exploration beyond 3000m depth is unlikely to be economical at small scale. Thus, the focus will now shift to the Millungera Basin where geothermal resources are inferred at shallower depths and large-scale regional power requirements are anticipated.
Signing of the agreement between the two parties for the joint feasibility study was reported in May 2023. CeraPhi was engaged not only to assess the area’s geothermal potential, but also to evaluate the likely effectiveness of their CeraPhiWell™ down-hole heat exchanger technology. The study’s outcomes are encouraging, revealing the capacity of the CeraPhiWell™ technology to provide the requisite heat for powering a 4.95-MWe plant in the Longreach region.
CeraPhi remains steadfast in its optimism about the potential of the CeraPhiWell technology within the Australian landscape, underscoring its adaptability and applicability. The feasibility study confirms the presence of an ample geothermal heat source in the Longreach area and validates the viability of the proposed down-well closed-loop technology for supporting a power station.
Shifting focus to Millungera Basin
With the positives stemming from the Longreach Geothermal Feasibility Study, the Company’s focus now shifts to the Millungera Basin, where there is already a significant commitment and investment, not only in transmission infrastructure but also in mining and industrial development. Greenvale’s geothermal team remains confident in the geothermal potential of the Millungera area, where it anticipates the discovery of requisite heat sources at shallower depths, with fewer sub-surface uncertainties.
GRV had previously received confirmation from Ascendience Geoscience that there is significant geothermal potential within the Millungera Basin based on an assessment of the studies done on the region by the Geological Survey of Queensland (GSQ). The Millungera Basin is considered one of the most highly prospective areas geologically in Australia and has been the subject of several geologic, geophysical, and thermal gradient studies in the past.
GRV’s investigation will centre on determining the optimal geothermal well depth and assessing the cost implications of drilling to a depth of 3km, exploring avenues for reducing well costs, identifying potential energy clients or producers for potential collaboration, and refining single well cost estimates.
“Whilst the results from our maiden geothermal feasibility study for Longreach are encouraging from a technical point of view, the economics simply do not work at this time,” said Mark Turner, Greenvale’s CEO.
“Therefore, we will shift our focus to the Millungera Basin where we have confidence in the transmission infrastructure and the potential for offtake. Being one of the first movers for geothermal in Australia was always going to present us with challenges. However, we now have confidence in the CeraPhiWellTM technology, confidence that we can take to the Millungera Basin as we look to unlock the area’s immense geothermal potential.”
