Perth-based Green Rock Energy Ltd has secured an insurance policy worth $4.8 million from the World Bank-administered Geothermal Energy Development Fund over the next eight years for its Hungarian geothermal energy joint venture.
The full text of a company announcement is pasted below
The World Bank has approved a US$3.7 million Geological Risk Insurance for Green Rock Energy Limited's Hungarian project. The insurance is the first in a series of projects earmarked for the World Bank-administered Geothermal Energy Development Fund over the next eight years.
The Geological Risk Insurance will provide the joint venture partners in the project with a refund of all major costs associated with the testing of the wells if the water flow rates do not achieve the desired levels, thus significantly reducing the financial risk associated with the project
Announced this month, the project will test out-of-use petroleum wells for hot water for the generation of geothermal energy. The first two wells, located in Zala County, in south-west Hungary, will be tested for hot water production rates over a six month period to determine the project's optimum development size, based on the quantity and sustainability of the water flow rate.
The Hungarian project is a joint venture between Green Rock Energy (32%), the Hungarian oil and gas company, MOL (36%), and Enex hf (32%), a leading Icelandic geothermal consulting and developing company. MOL is Hungary's largest company, and is the operator of the Joint Venture
The Geothermal Energy Development Program is funded by the Global Environment Facility Trust Fund and implemented jointly by the World Bank and the IFC, to systematically promote the use of geothermal energy in Europe and Central Asia, leading to greater diversification in energy use and increase in demand for, and supply of, geothermal energy - the only renewable energy that can provide constant base load electricity.
Green Rock Energy is positioning itself as a major developer of enhanced geothermal energy projects. In addition to the Hungary Geothermal Project, the company is currently evaluating the major geothermal resource at Olympic Dam, in central South Australia, and has applications for additional geothermal leases in Australia.
