Greenvale Energy Ltd. has reached an agreement with SRL Hot Rocks Pty Ltd. for a potential geothermal project in Northwest Queensland.
Greenvale and Hot Rocks entered into a farm-in agreement and future joint venture to develop the Millungera Basin Geothermal project.
Under the terms of the agreement, Hot Rocks will fund the sole exploration and development to a total value of AU$5 million to earn a majority interest in the Millungera project. The farm-in will be completed in two phases over five years.
At the completion of the farm-in, the two companies may form a joint venture to advance the project. The joint venture will be split 80/20 with Hot Rocks taking the majority interest.
Greenvale CEO Alex Cheeseman said: “The cost and availability of power is a significant issue in Australia, especially in north-west Queensland where multiple large-scale resource projects are currently being explored and developed.
“The Millungera Basin represents one of Australia’s most attractive regions geologically to target economically exploitable geothermal energy for a clean-energy future.
“Having identified the potential of Millungera and worked through an extensive permitting and access process, we are excited to have now attracted a major partner that can undertake the initial heavy lifting to explore and advance the project.”
Greenvale said the Millungera project sits at one of the most prospective areas for geothermal energy in Queensland. The basin has a total stored thermal energy potential likely to exceed 611,000 petajoules, making it potentially a significant clean energy supply for Australia.
Greenvale has also received geothermal exploration permits 2023, 2024 and 2025, all with initial terms of five years.
The permits, along with Native Title party access agreements, set the conditions for exploration efforts to commence immediately.
