Petratherm misses USD-12m grant for Aussie geothermal scheme
Jul 21, 2014 - Australian firm Petratherm Ltd (ASX:PTR) said today it had lost an AUD-13-million (USD 12.2m/EUR 9m) grant from the Australian Renewable Energy Agency (ARENA) for a 7-MW geothermal project.
The geothermal developer had to raise AUD 5 million in equity from investors in order to get the ARENA financing for Paralana 3, the project's second deep well. However, it failed to raise the funds even after it got a seven-month extension. The deadline will not be prolonged further, according to the press release.
Petratherm’s joint venture partner Beach Energy (ASX:BPT) was obliged to fund its 21% of the matching project costs as another condition for the grant.
An additional AUD-24.5 million renewable energy demonstration programme grant from ARENA negotiated in 2013 and related to the Paralana 3, has also been terminated. The developers were to receive the financing after completing the second well.
Petratherm’s managing director Terry Kallis noted that Petratherm will proceed with new investment opportunities.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.