CeraPhi Energy has delivered the initial feasibility study to evaluate the latest geothermal
closed-loop technology for the GRV’s Longreach EPG. Focus will now shift to the Millungera
Basin after successful assessment of CeraPhiWellTM technology.
Key Points:
• CeraPhi Energy has completed the initial Feasibility Study on the potential for
power generation at Longreach in Queensland.
• Well modelled to produce 150°C, demonstrating the effectiveness of the
patented CeraPhiWell™ technology.
• Focus to shift to the Millungera Basin with assessment underway.
Following on from its ASX announcement made on the 11 May 2023 “Greenvale Partners
with CeraPhi Energy for Groundbreaking Geothermal Feasibility Study”. Greenvale Energy
Limited (ASX: GRV, “Greenvale” or “the Company”) is pleased to announce the completion
of its inaugural Geothermal Feasibility Study, conducted in collaboration with CeraPhi
Energy ("CeraPhi"). The study was centred around Greenvale's Longreach geothermal
tenement in Queensland.
The study was conducted by CeraPhi who were engaged not only to assess the area’s
geothermal potential but also to evaluate the likely effectiveness of their CeraPhiWellTM
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 4.95MWe plant in the Longreach
region. However, Ceraphi has concluded that geothermal exploration below 3,000m
depth is unlikely to be economic at small scale. GRV will focus on the Millungera Basin
geothermal potential which has target depths of 2.5-3kms and large scale regional power
requirements
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.
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.
Proposed next steps:
Millungera Basin Exploration: Shift focus and resources to the Millungera Basin permits,
where heightened heat flow presents an opportunity. GRV’s investigation will centre on
determining the optimal geothermal well depth and assessing the cost implications of
drilling to a depth of 3km,
As previously released (refer ASX Announcement 6th September 2022), The Company has
received an independent assessment, from Ascendience Geoscience, of previous inferred
geothermal resource estimates reported by the Geological Survey of Queensland (GSQ) for
the Millungera Basin. Ascendience has confirmed the findings of the GSQ report, which
assessed the basin's total stored thermal energy potential at over 611,000 petajoules of
inferred geothermal potential. For reference, one petajoule is the equivalent of
approximately 278-gigawatt hours.
Cost Mitigation Exploration: Exploring avenues for reducing well costs, including potential
rig acquisition tailored to the project's needs.
Detailed Subsurface Review: Undertaking a thorough sub-surface assessment to identify
drilling risks and define subterranean stratigraphy more accurately.
Exploration of Partnerships: Identifying potential energy clients or producers for potential
collaborations that align with Greenvale’s objectives.
Refining Single Well Cost: Our focus will also extend to refining single well cost estimates.
An analysis of project capital costs indicates that drilling and well construction expenses
can comprise up to 89% of the total. This effort will facilitate the development of a
comprehensive framework to estimate potential drilling costs and assess the associated
efficiencies.
Management Comment
Greenvale’s CEO, Mark Turner, commented: “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.
“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.”
