Geothermal Energy Potential of Western Tasmania Investigated

Allegiance Mining NL, through its wholly owned subsidiary Geothermal Energy Tasmania Pty Ltd., plans to investigate the potential of deeply buried granites in western Tasmania to generate geothermal energy.

Generation of power from deeply buried hot rocks is rapidly emerging around the world as a potential major source of base load electrical energy, with operations in several countries approaching commercialization. The process involves pumping water 3-5 kilometers down drill holes where it is heated up in an area of very hot (200-300 degrees Celsius) fractured rocks. The heated water then returns under pressure to surface up a second set of drill holes where it is used to generate electricity in a heat exchanger-power station complex. The cooled water is then returned into the cycle. Geothermal Energy Tasmania has applied for a 3,000 square-kilometer Special Exploration License over areas of western Tasmania which it believes may be underlain by hot granitic rocks capable of meeting the necessary criteria for hot rock geothermal energy production. Geothermal Energy Tasmania will initially be assessing all available relevant data on the area, and undertaking preliminary studies and surveys to validate the concept and demonstrate the potential for hot rock geothermal power generation.