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GLOBAL RENEWABLES ONLINE - DECEMBER 2011
Panax and Bakrie Power have held
meetings with local governments and the
community throughout planning stages of
the project.
“There is strong support to develop this
project as it will have significant benefits for
the region and its communities,” Mr. Parker
said.
Using a similar entry strategy, Panax has
expanded its interests into India which is
well known for high geothermal gradients
and temperatures.
“We are targeting projects in the Himala-
yan geothermal province in northern India
which is in an extreme high-heat zone and is
abundant in geothermal resources,” Mr.
Parker said.
In a joint venture with Geosyndicate
Power Private, Panax is focussing its
attention on the Puga Project in the Puga
Valley – considered one of the most
promising geothermal regions in the
country.
Panax has also made its mark
domestically with three projects underway
in South Australia – the Penola Project,
Limestone Coast Project and Hutton Project.
The Penola Project and Limestone Coast
Project hold two of only three known
Measured Geothermal Resources in
Australia.
Mr. Parker says geothermal is the future
of global energy needs.
“Geothermal energy is the only sustain-
able source of energy that can replace
baseload power generated by fossil fuels and
provide clean energy all year round,” Mr.
Parker said.
“There is significant commercial potential
for geothermal in Australia and other parts
of the world where geothermal power
stations have been operating for nearly 100
years.
“Panax will continue to increase its global
presence to meet the world’s growing
demand for cleaner power and bring
geothermal to the forefront of the energy
industry in Australia.”
The shallow nature of Indonesian
geothermal resources also means drilling
costs are cheaper, relative to the costs of
drilling and completing a well in Australia.
As a vital part of its carbon strategy, the
Indonesian Government provides a guaran-
teed feed-in tariff of US$97 per megawatt
hour to geothermal energy generators.
“This provides investment certainty for
renewable energy projects that is not
currently available in Australia,” Mr. Parker
said.
One of Panax’s most advanced projects in
Indonesia is the Sokoria Project on Flores
Island.
With final planning and exploration
works completed last month, Panax is one
step closer to drilling its first well in
Indonesia.
Physical works on the project are expected
to start in early 2012.
Panax and Bakrie Power will work
together to construct a 30 megawatt
geothermal power station.
Electricity generated from the project will
be sold to the Indonesian Government
electricity regulator PT PLN (Persero) at a
price of US$125 per megawatt hour.
Mr. Parker says diesel generation in the
region can only produce 12 megawatts of
electricity, which is insufficient for the local
electricity market.
“Electricity users often lose power daily,”
he said.
“Most households only get electricity for
part of the day and some areas are not
connected to the network at all.
“When the Sokoria Project is complete,
the region will have access to power 24 hours
a day, 7 days a week.”
The Indonesian Government estimates the
Sokoria Project’s resource potential at 145
megawatts.
“Once a reliable power supply is available
to the community, the total market demand
is likely to exceed 30 megawatts, giving us
the opportunity to expand the project,” Mr
Parker said.
“ Panax will continue to increase its global presence to meet the world’s
growing demand for cleaner power and bring geothermal to the forefront of
the energy industry in Australia.”
PANAX SPOTLIGHT - GEOTHERMAL