VRX Silica Limited (ASX: VRX) has been granted Geothermal Exploration Permit (GEP) GEP 44 consisting of eight blocks at Dandaragan, 145km north of Perth, Western Australia.
Geothermal technology has the potential to produce long term dispatchable renewable energy for the Mid-West region, including VRX Silica’s Arrowsmith Silica Sand Projects, as well as green hydrogen for the manufacture of glass.
The Dandaragan GEP area includes the Walyering gas field currently under development by EP447 Joint Venture between Strike Energy 55% and Talon Energy 45%.
The grant presents an opportunity to work with these companies to use extensive historical and current data to explore for potential geothermal power options.
This initiative was undertaken by VRX Silica to support our silica sand projects and long-term ambitions for the production of glass in Western Australia,” Managing Director, Bruce Maluish, said.
“Geothermal energy is a reliable, long-term renewable energy source with the ability to power our silica sand projects and provide base-load renewable generation to backstop variable renewable sources, such as wind and solar.”
The grant follows the acreage release nomination VRX Silica lodged in December 2021 and subsequent GEP application in April 2022 with the Department of Mines Industry Regulation (DMIRS).
VRX Silica has another two GEP Applications in the Mid-West currently under consideration.
The company is actively engaging with potential partners with the relevant industry experience and capability for the development of this project.
In December 2021, VRX Silica lodged an Acreage Release nomination with DMIRS for specified areas in the Mid-West to be included in a geothermal acreage release. In January 2022 DMIRS released 21 areas in Western Australia for applications for GEPs with a closing date for applications of 21 April 2022.
GEPs are administered by DMIRS under the Petroleum and Geothermal Energy Resources Act 1967 with areas released as a Discrete Area Release. Successful applications are determined through a competitive bidding system.
VRX Silica has made application for three GEPs and has been notified the other two permits are progressing through a section 69A PGERA consultation phase. There is no timeline for this process.
GEP 44 has been denoted as the Dandaragan Geothermal Project.
