The Australian Government has agreed to fast-track $1.2 million in grant monies to progress development of the Paralana geothermal energy project in the south-eastern Flinders Ranges in South Australia. The project is a joint venture of Petratherm, TruEnergy and Beach Petroleum.

The money will be used for preparatory work for the drilling of its second producer well, Paralana 3, which is expected to “close the loop” to enable commercial production of geothermal power to begin in 2012.

Petratherm’s Managing Director. Terry Kallis, said that “It’s a fantastic boost and enables us to build on the momentum we have generated at Paralana following our successful fracture stimulation works in July and subsequent testing. The funding will be used to help design our Paralana 3 well, obtain crucial equipment and secure a drilling slot with our rig provider. More importantly, it helps keep us firmly on track to produce
Australia’s first commercial supply of geothermal energy by the end of next year.”

This SBS video clip from 2009 describes the project: