Geodynamics (ASX:GDY) is the pioneer of Hot Rocks in Australia and has no doubtably the most advanced project to date. The Cooper Basin is one of the world’s hottest locations for Hot Fractured Rock (HFR) energy and is the site for the Geodynamic’s demonstration plant.

Geodynamic’s economic modeling prepared in 2002 as part of its prospectus suggests it can produce power from a 13MWe demonstration plant at around $63MW/h. This is cheaper than wind, and has similar infrastructure costs. A scaled up plant of 275MW is suggested to produce power at a cost of $40MW/h which is the first base load zero emissions renewable energy source to rival the cost of conventional fossil fuels. This data is produced in collaboration with MIT and has been independently reviewed by Sinclair Knight Merz.

Geodynamics has successfully obtained a technological transfer agreement and sub licence for the use of Kalina Cycle technology. Kalina Cycle is the world’s highest efficiency heat to power conversion technology which when used in the proposed binary geothermal power plant can increase the efficiency by as much as 25%. Such increases have been demonstrated in a plant in Iceland. Traditional plants have used an Organic Rankine Cycle (ORC) based on organic fluids where the Kalina Cycle uses a water ammonia mixture.

One of the problems with producing power of this quantity in the Cooper Basin is the cost of connecting it to the High Voltage Transmission Network. As Geodynamics has another GEL for the Hunter Valley (close to Sydney) many wonder why this site was not chosen for the demonstration plant. However Geodynamics points out the temperature of the granites may be tens of degrees lower at the Hunter Valley site which can cause power output to be cut substantially.

The 275MWe scaled up plant could be connected to the High Voltage Distribution Grid with a line to Olympic Dam. This proposal is suggested to cost approximately $5 to $10MW/h still making the project very viable.

The 275MWe plant will harnesses an area of HDR 2.5 x 2.5 kilometres. Geodynamics GEL97 & GEL98 HDR geothermal exploration tenements in South Australia alone cover an area of 991 square kilometres and with mention of future capacities in the thousands of MWe, We can only wait and see what eventuates of this exciting technology. The 1000 square kilometre HDR resource is the equivalent of 50 billion barrels of oil or 10.3 billion tonnes of coal. This is 20 times larger than all the known Australian oil reserves and equivalent to 40 years current black coal production.

Habanero 1 & 2, Geodynamic’s first two geothermal wells (named after a hot chilly pepper) has produced very exciting results. Hydraulic stimulation of the underground heat exchanger, the most riskiest part of the project, was successfully completed in January 2004. It was reported to have exceeded all expectations with a heat exchanger seven times larger than expected.

An initial water circulation test in mid April 2005 lasting 40 hours reached temperatures of 198.5^OC, producing up to 10MW of thermal power. In May, the temperature was recorded at 210^OC and 15MW of thermal energy was produced. This demonstrated the conditions are favorable for a large scale zero emissions Hot Rock power plant and was a significant milestone. To date, two years later, no other Hot Rock explorer has performed a circulation test, let along Hydraulic Stimulation.

However as a result of the fallen bridge plug, less than optimal connection was observed with Habanero 2 and further hydraulic stimulation as part of the Enhancement phase was suggested to remedy the problem. The enhancement phase saw the enlargement of the Bottom Zone reservoir by 52%, but did little to obtain an optimal connection with Habanero 2, hence the company decided to drill a side track around the dropped bridge plug in Habanero 2.

Drilling of the side track started on the 10th March 2006 and by June 2006 a series of technical issues cause the suspension of drilling the side track due to slow and costly progress.

In August 2006 after a extensive review of drilling, new plans have been set in place. Geodynamic’s have purchased a drill rig from LeTourneau Technologies to drill a new well, Habanero 3. This will be drilled at 8½” and will be the first well as part of the Hot Rock 40 project, a project to generate 40MW of electricity.

The rig has left the manufacturer in Houston on the 30th May and should be on site in early July 2007. Geodynamic’s expect to spud Habanero 3 in the second half of July.

Literally it’s full steam ahead for Geodynamics.

Technical Announcements :

» Drilling Rig Leaves Houston for Australia - 31st May 2007.
» MoU with Geysir Green Energy ehf and Exorka ehf - 26th April 2007.
» Geodynamics reviews its resource position and brings forward its development plans - 11th April 2007.
» Environment Minister visits Habanero hot rock energy site - 28th September 2006.
» The Way Forward for Drilling and Update of LETDF - 31st August 2006.
Habanero 2 Sidetracks :
» Habanero 2 - Well Suspension - 29th June 2006.
» Habanero 2 - Well Intervention Update - 19th June 2006.
» Habanero 2 - Well Intervention Update - 15th June 2006.
» Habanero 2 - Well Intervention - 13th March 2006.
» Habanero 2 - Side track - 28th February 2006.
» Underground reservoir further enlarged and enhanced - 24th October 2005.
» Major upgrade of underground heat exchanger - 7th September 2005.
» Evidence of a large and highly permeable heat exchanger - 4th July 2005.
» Cooper Basin HFR Geothermal Project - 14th June 2005.
Circulation Test :
» Habanero 2 - Heat flow reaches in excess of 15MW thermal power - 30th May 2005.
» Geodynamics acquires Geothermal Exploration Licence 99 from Scopenergy Limited - 23rd May 2005.
» First HFR geothermal flow in Australia - 26th April 2005.
» Diagnostic Flow Test to commence shortly - 19th April 2005.
» Habanero 2 - Geothermal Flow Commenced - 5th April 2005.
» Habanero 2 - Bridge Plug Freed - sunk to bottom of well - 29th March 2007.
» Habanero 2 - Gearing up for plug removal operations - 15th March 2007.
» Habanero 2 - Late arrival of CTU causes further delay in plug retrieval operations - 8th March 2005.
» Habanero 2 - Late arrival of CTU unit delays pug retrieval operations - 28th February 2005.
» Habanero 2 - Bridge plug removal scheduled to start on 27 February 2005 - 17th February 2005.
» Temporary delay in retrieval of shallow set bridge plug - 25th January 2005.
Habanero 2 Drilling :
» Habanero 2 well head installed - preparing for geothermal reservoir testing program - 10th January 2005.
» Deep underground connection between Habanero #1 and Habanero #2 - 18th October 2004.
» Habanero 2 - On schedule at 3,200 metres - 23rd August 2004.
» New Kalina Cycle Design Patent - 26th July 2004.
» Habanero 2 Drilling is underway - 12th July 2004.
» Geodynamics raises $7 million to drill second HFR well - 11 March 2004.
Hydraulic Stimulation :
» Hydraulic Stimulation program completed - overall project risk significantly reduced - 21st January 2004.
» Completion of Kalina Cycle Acquisition - 21st January 2004.
» Hydraulic Stimulation #1 completed - results exceed expectations - 19th December 2003.
» Kalina Cycle Press Release - 22nd October 2003.
Habanero 1 Drilling :
» Habanero 1 exceeds minimum depth at 4,421m - Hydraulic Stimulation set
to start - 18th September 2003.
» Progress Report on Habanero 1 - 15th September 2003.
» Progress Report on Habanero 1 - 14th August 2003.
» Habanero 1 - Drilling operations scheduled to resume on 28 June 2003 - 18th June 2003.
» Habanero 1 - Encouraging findings in heat-bearing granites - 19th May 2003.
» Habanero 1 has passed a critical milestone - 7th May 2003.
» Excellent Progress On Habanero 1 - 10th March 2003.
» Start Of Drilling Of Historic Deep Geothermal Well - 16th December 2002.
» Ready To Start Drilling $5.4 Million Geothermal Well - 16th December 2002.

Links :

» Geodynamics Ltd Corporate Website
» Sydney Mining Club Presentation - Adrian Williams, Geodynamics

Geodynamics currently holds the following GELs :

GEL99 - Moomba, South Australia.
GEL211 - Mootanna, South Australia.
EL5560 - Muswellbrook, New South Wales.
EL5886 - Bulga, New South Wales.
EPG5 - Tennaperra, Queensland.
EPG6 - Nappa Merrie, Queensland.

and has applied for the following Geothermal Retention Licences (GRLA) :

GRLA 3, previously part off GEL 98 - Innamincka South Australia.
GRLA 4, previously part off GEL 98 - Innamincka South Australia.
GRLA 5, previously part off GEL 98 - Innamincka South Australia.
GRLA 6, previously part off GEL 98 - Innamincka South Australia.
GRLA 7, previously part off GEL 98 - Innamincka South Australia.
GRLA 8, previously part off GEL 97 - Bulyeroo South Australia.
GRLA 9, previously part off GEL 97 - Bulyeroo South Australia.
GRLA 10, previously part off GEL 97 - Bulyeroo South Australia.
GRLA 11, previously part off GEL 97 - Bulyeroo South Australia.
GRLA 12, previously part off GEL 97 - Bulyeroo South Australia.