Australian geothermal reserves will provide an important source of power in the future. As well as being carbon neutral, it is estimated that electricity generated from a commercial field pumping heat out of the earth will be cost effective compared to electricity generated from coal.
We have a core investment in the industry leader, Geodynamics Ltd (see Jan-Feb below). It is our intention to make a number of smaller investments in those geothermal explorers which demonstrate potential for both success and growth in value. To our existing holding in KUTH Energy (see May 2008 below) we have added small holdings in Panax Geothermal Ltd at 13c per share and Hot Rock Ltd at 9.1c ps. Panax is developing a ‘hot artesian’ resource, rather than the usual ‘hot granite’ resource. It is managed by Dr Brutus de Graff, who was the driving force behind Geodynamics from its early days till 2008.