Paralana Project Expands by 49km²; Cash Position Steady at $3.9M

Paralana Project Breakthroughs

Earth's Energy Limited (ASX: EE1) has unveiled significant progress in its flagship Paralana geothermal project, with a technical and economic feasibility study conducted alongside GLJ Ltd confirming the site's suitability for next-generation Enhanced Geothermal Systems (EGS). The study has delineated two distinct geothermal zones: an Initial Zone of approximately 20km² with existing permeability accessed by the historic Paralana-2 well, and a newly identified Secondary Zone spanning roughly 49km² characterized by a shallower heat reservoir. This shallower depth could materially reduce drilling costs and technical complexity, enhancing the project's commercial viability.

Expanding Prospects in Flinders West Corridor

Alongside Paralana, Earth's Energy has commenced development of new prospects within the Flinders West Corridor. The company is targeting commercialisation strategies focused on onsite power consumers, particularly in proximity to mining hubs such as Roxby Downs and Olympic Dam. These efforts align with the broader industry trend of integrating geothermal energy solutions to support energy-intensive operations, potentially offering stable, green baseload power to these regions.

Queensland Data Centre Initiative

In Queensland, Earth's Energy continues to explore the innovative application of geothermal energy to power data centres. This initiative is in the study phase, with ongoing discussions with potential development partners. If successful, this could position the company at the forefront of sustainable infrastructure development, leveraging geothermal's reliability and low emissions to meet growing data processing demands.

Global Context and Strategic Partnerships

The company's developments come amid a bullish outlook from the International Energy Agency (IEA), which forecasts up to US$2.5 trillion in investment in next-generation EGS by 2050, driven by technological advances such as horizontal drilling and enhanced subsurface mapping. The IEA highlights EGS's potential to provide reliable, low-cost baseload power with a projected Levelised Cost of Electricity around US$50/MWh, making it competitive with established dispatchable energy sources.

Earth's Energy is actively engaging with US-based potential joint venture partners to access substantial capital and technical expertise, signaling a strategic move to accelerate project development and commercialisation. These partnerships could be pivotal in transitioning the company from exploration to operational phases.

Financial and Corporate Developments

Financially, Earth's Energy reported a cash balance of $3.9 million as of 31 December 2024, supporting ongoing exploration and feasibility activities. The company also underwent board renewal, appointing Glenn Whiddon as an independent non-executive director and transitioning Chris Bath from executive director to Chief Financial Officer, thereby increasing board independence. Expenditure remains aligned with the company's prospectus, with a focus on technical services and exploration.