Geothermal energy permits offered

Discovery, Page: 5
Wednesday, 12 July 2006

Victoria's embrace of alternative energy resources has led to a call for applications to explore for deep underground geothermal energy resources which can be utilised for the greenhouse friendly generation of electricity. Geothermal energy utilises the power of hot, dry rocks and water reservoirs from deep beneath the earth's surface to operate electricity generation turbines. A total of 31 blocks across Victoria have been offered to explorers to locate the state's best geothermal resources. The permit areas were unveiled at a recent function led by Victorian Energy Industries and Resources Minister, Theo Theophanous, with more than 70 industry participants attending.

Mr Theophanous said that unlike New Zealand, Australia's geothermal potential was not obvious on the surface, but he said that vast reserves of hot rocks and water potentially existed below ground. "Like wind energy, geothermal energy has minimal impact on the environment. However, it has significant potential to provide us with a clean form of power," he said. "We expect that within six months there will be significant activity. Several companies have already expressed interest in this and have projects ready to go."

One company which has declared its interest in geothermal energy is Petratherm, which is already drilling for hot rocks in South Australia. Petratherm managing director Peter Reid said the Gippsland and Otway basins had the right geological features to host geothermal energy resources and added thai the areas were also well served with existing infrastructure which could aid the development of any resources discovered in the areas. Oil and gas exploration group, Lakes Oil Ltd is also keen to participate in the geothermal energy application process.

Chairman Rob Annells said the company's drilling activities in the Gippsland Basin area and in the Otway Basin west of Melbourne had already provided Lakes with a large amount of knowledge about potential geothermal energy resources in Victoria. "We've got a fair idea of where there are some good areas," Mr Annells said, adding that Lakes has advocated for geothermal energy for a number of years. New legislation to promote large-scale geothermal operations was adopted in Victoria last year to support investment in geothermal energy. The Geothermal Energy Resources Act 2005 (GER Act) puts in place a framework that gives secure title to the resource, provides efficient and effective allocation processes, and establishes transparent, fair and efficient land use, environment planning and land access processes.

The legislation ensures that health, safety and environmental issues are considered as part of geothermal operations. It is designed to apply only to major energy investment projects so it does not require exploration permits or extraction licences where the in situ temperature is less than 70°C or the heat source is less than 1 kilometre below the earth's surface. Small-scale commercial projects such as fish farms or the heating of municipal swimming pools are unlikely to be affectec by the GER Act. DPI's GeoScience Victoria group has produced a free geoscience data DVD for companies considering exploring Victoria for sites of likely geothermal power generation.

Groups interested in applying for one or more geothermal permit areas must submit an exploration work plan for the area of interest which will be assessed against set criteria. Closing date for applications is 11 October 2006 with new permits likely to be granted in late 2006 or early 2007.

For more information visit: www.dpi.vic.gov.au/minpet/geothermal
Contact: Roger Buckley, Manager Business Development Department of Primary Industries Phone: 03 9658 4402
Email: roger.buckley@dpi.vic.gov.au