$5m for hot-rock renewable energy project at Anglesea

www.geelongadvertiser.com.au
December 10th, 2009

Geelong is set to lead the country in renewable energy after the State Government yesterday granted $5 million towards a geothermal power plant. The plant, 9km north of Anglesea, has the potential to power 120,000 homes in the region with clean, renewable energy. Geothermal energy involves drilling a well down 4000m into hot sedimentary rock that contains water at 180C. The water drives the power plant, which creates electricity, the cooled water is then sent back down via a second well to be re-heated.

Mark Miller, the general manager of Greenearth Energy, the company that will oversee and run the plant, said the first stage was to determine if there was enough heat and flow. "If that's successful and we have no reason to believe it won't be, then the second stage, the demonstration stage, will be the building of a plant capable of producing 12MW of power. That could, potentially, power a few thousand homes," Mr Miller said. The first exploratory stage to which the Government has committed the $5 million will begin drilling in August 2010 and is estimated to take 18 months to complete. Thirty-six months later it is expected the second stage will be completed and connected to the national grid.

Stage three will take another five to seven years. "If it's all successful we'll roll out in a modular form multiple 12MW plants with the estimated capacity being 140MW of baseload generation," Mr Miller said. In comparison, the brown coal-fired plant at Anglesea has a capacity of about 150MW. "Geelong is faced with a significant challenge under the carbon-pollution reduction scheme being ring-fenced by industries and this geothermal project will help reach the 20 per cent target of renewable energy by the set time of 2020," he added. "There are also potential offtakers of that power in and around Geelong. Companies like Alcoa and Boral will be able to reduce their baseload emissions.

"We can generate that emissions-free power to the grid and industry and help maintain local jobs." Provided all tests deliver, the Brumby Government will kick in a further $20 million for the $64 million demonstration stage with Greenearth Energy also looking to the Federal Government to support both stage two and stage three. Yesterday Mark Wakeham of Environment Victoria welcomed the State Government's contribution.

"Obviously Victoria hasn't got any major geothermal projects so this is the first cab off the rank. It's expensive initially so we're pleased the State Government has committed," Mr Wakeham said. "It is only one step. Last year 94 per cent of Victoria's power came from burning coal. "We need to be doing a lot to transition away from coal so supporting different renewable energy projects is important. "We've got some wind energy projects going, there's wave power at Portland and if the wind is not blowing, we'll have geothermal power operating."