PANAX Geothermal has been awarded a grant of $7m under the Commonwealth Government’s Department of Resources, Energy and Tourism (“DRET”) “Geothermal Drilling Programme”.
The company says the grant is for the drilling of a production well in the Penola Trough in South Australia.
Panax Geothermal says it regards the successful outcome of its grant application as recognition of the overall merits and scope of the Penola Project, which is part of the broader Limestone Coast Geothermal Project area.
Panax has secured a contract drilling rig, which is scheduled to spud its first production well, “Salamander -1” in September, 2009.
The firm says that it is confident that the Penola Project could become the first, grid-connected commercial demonstration plant in Australia.
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