AGL Energy Limited (AGL) announced today that it will acquire a 9.99% cornerstone investment in Torrens Energy Limited (TEY) by way of a share placement at $0.40 per share for a cash outlay of $2.2 million. AGL and TEY have also entered into a Geothermal Alliance Agreement (GAA) to commercialise base load geothermal projects close to the National Electricity Market (NEM). The alliance combines TEY’s geothermal exploration capabilities with AGL’s energy market development experience. TEY will be responsible for carrying out the exploration activities and provide AGL with the option to farm-in to TEY’s Geothermal Exploration Licences (GEL) at permit and project level.
AGL Managing Director Michael Fraser said “Geothermal energy is an emerging renewable technology that will complement AGL’s existing pipeline of renewable energy projects in wind and hydro. This is an opportunity for AGL to participate in the development of this new industry”.
AGL will have significant long-term obligations under the Mandatory Renewable Energy Target Scheme (MRET), which the Federal Government intends to substantially expand by 2020. If successful, geothermal energy could play an important role in meeting AGL’s longer term renewable energy obligations and provides further technology diversification to AGL’s position as Australia’s largest integrated renewable energy company. The GAA prescribes the terms and conditions for AGL’s entry into a 50/50 joint venture aimed at commercialising geothermal energy. The GAA gives AGL the option to participate in a number of base load renewable energy projects close to the NEM.
A recent opinion from an independent geothermal consultant supports expectations that heat flow values from TEY’s permit areas are comparable to those recorded in the Cooper Basin. TEY’s permit areas have the added advantage of being located in close proximity to established electricity transmission infrastructure, which should provide cost advantages in commercially exploiting TEY’s geothermal resources.
Click here to view the Geothermal Investment Fact Sheet.
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Further enquiries:
Media
Nathan Vass Senior Adviser Media
Direct: + 61 2 9921 2264
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e-mail: nvass@agl.com.au
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e-mail: gthompson@agl.com.au
About AGL
AGL is one of Australia's leading integrated energy companies. Drawing on 170 years of experience, it includes retail and merchant energy businesses, power generation assets and an upstream gas portfolio. AGL has Australia's largest retail energy and dual fuel customer base. This includes customers supplied with gas and electricity through AGL's joint venture partnership with ActewAGL. AGL has a diverse power generation portfolio including base, peaking and intermediate generation plants, spread across traditional thermal generation as well as renewable sources including hydro, wind, landfill gas and biomass. One of Australia’s largest renewable energy producers, AGL is looking to further expand this position by exploring a suite of low emission and renewable energy generation development opportunities.
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