Parkside, South Australia [RenewableEnergyAccess.com] Torrens Energy Limited announced earlier this week the company has been awarded AUD $3 million [US$ 2.4 million] in grant funding, under the Australian Federal Government’s Renewable Energy Development Initiative (REDI) Scheme. The grant funding will be backed by the company’s existing cash reserves of approximately $5.8 million for the ongoing search for commercial energy production from Torrens Energy’s SA hot rock projects.
“The offering of REDI grant funding is a significant step forward for Torrens Energy, a company which is now a recognized leader in both intellectual and technological innovation in the geothermal energy sector,” said Torrens Energy’s Chief Executive Officer, Chris Matthews. “Exploration land access is under way and drilling is scheduled to commence at the Torrens Project Area in October 2007.”
Funds will be used to accelerate drilling and temperature modeling, reducing the technical risk associated with generating deep drill targets for geothermal energy production. Torrens Energy will use temperature data from exploration drilling to develop a three-dimensional temperature field model (3D-TFM) across the company’s highly prospective Geothermal Exploration License package in South Australia.
“The 3D-TFM methodology will effectively remove several critical uncertainties, reduce risk, and maximize our understanding of the deeper heat and geology at a fraction of the cost of conventional deeper exploration drilling,” Matthews added.
In addition to the REDI grant, the Company will directly benefit from the Federal Government’s planned AUD $59 million [US$ 48 million] Onshore Energy Security Programme, which will see seismic surveys across some of the Company’s license areas to the value of over $400,000.