Green Rock announced a significant milestone towards the first major geothermal project in Australia where the energy will be used directly to cool and heat commercial buildings.

Green Rock and the University of Western Australia have signed an agreement which defines the terms under which Green Rock will develop the project at UWA’s Crawley Campus in metropolitan Perth, subject to regulatory approvals and operational requirements.

The agreement contains the key terms of:
1. An Access Agreement under which Green Rock will implement the Project at the Crawley Campus including site preparation, drilling 2 wells, testing sustainable water flow and site rehabilitation. The first well is planned for early 2011;
2. An Offtake Agreement for UWA to pay Green Rock the value of the electricity replaced by the direct use of geothermal energy over the 20 year life of the Project and
3. An Operations and Maintenance Agreement under which UWA will operate and maintain the absorption chiller and associated plant to be installed and owned by Green Rock.

The agreement also enables Green Rock to acquire UWA’s 50% interest in the Geothermal Energy Permit GEP1 and offer it to other parties to invest in the UWA Project and follow on projects such as the QEII Medical Centre and Stirling City Centre. Although UWA will be passing on its interest in the Permit under the agreement, it will be remaining on the title of GEP1. Green Rock is in discussions with possible partners who see the huge potential for using the geothermal resource under Perth to cool and heat commercial buildings and replace electricity from the grid.

Green Rock is also currently in discussion with the Commonwealth Government to finalize a funding agreement under the Geothermal Drilling Program for USD 7 million from the Government in matching funding for the Project at UWA.