Victoria, an Emerging Geothermal Province
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Geothermal energy is an emerging green energy industry that has the potential to provide clean, reliable and renewable electricity.
Literally meaning heat from the earth, geothermal energy is generated from naturally occurring heat within hot rocks and water reservoirs deep beneath the Earth’s surface. This heat may be extracted and converted to electricity and then added to the national electricity grid.
The latest report on Victoria’s geothermal energy resources shows significant potential with some local hot spots present. In spite of this, Victoria’s geothermal energy resources have scarcely been tapped. There is, however, growing awareness of their potential value. With further exploration and improved technology, a better picture of Victoria’s geothermal resource potential will emerge.
GeoScience Victoria (GSV) has initiated geothermal exploration activities in the State by integrating and adding value to assorted petroleum, mineral and water datasets and by commissioning new temperature sampling in boreholes. GSV is collaborating with heat flow research work at Melbourne and Monash Universities and supporting Geoscience Australia to acquire thermal conductivity and downhole temperature data as part of the National Onshore Energy Program.
GSV has begun a series of major studies that will better characterise the potential of Victoria’s sedimentary basins and bedrock for geothermal and other energy potential.
In addition, in 2005, the Victorian Government passed the Geothermal Energy Resources Act which provides a new framework for large-scale commercial exploration and extraction of geothermal energy at depths greater than 1,000 metres and at temperatures greater than 70°Celcius. The Act provides secure title and a clear and consistent approvals process for companies that want to explore or extract geothermal energy in Victoria. More than 20 permits covering more than 70 per cent of Victoria have been issued since 2007 to companies exploring for commercial geothermal resources.
These companies have committed to spend over A$300 million during the five-year permit period. Small-scale geothermal projects such as ground heat pumps used for aquaculture and some spa resorts are excluded from the Act. These will continue to be regulated by existing planning, environmental and water legislation.
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2001 drilling by Lakes Oil N.L. of Tifon-2 well encountering hot saline water. |
The Victorian Government supports the development of geothermal energy. The Victorian Renewable Energy Target (VRET) scheme is being progressively replaced in 2010 by the Federal expanded Renewable Energy Target (eRET). The eRET provides for a target of 20 per cent of power provided by renewables by 2020. Geothermal energy has the potential to contribute to these targets. The Victorian Government has already committed A$25 million for a large-scale demonstration geothermal power plant north-west of Anglesea. This funding is part of the Energy Technology Innovation Strategy (ETIS). The aim of ETIS is to drive innovative energy technologies across research, development, demonstration and deployment for market uptake.
The project has been identified as the most prospective geothermal project in Victoria offering a dispatchable base-load power solution and with the potential to be commercially very prospective. This project, which could eventually power up to 120,000 homes with clean, emission-free renewable energy, is the first to be funded under an ETIS program supporting large-scale, pre-commercial, sustainable energy demonstration projects.
By supporting the development of the geothermal industry in Victoria via ETIS, the Victorian Government is following its strategies to increase the development of commercial energy and energy related greenhouse gas reduction technologies.
Victoria’s geothermal energy resources have scarcely been tapped. There is, however, growing awareness of their potential value.
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For more information contact:
Energy Technology Innovation
Department of Primary Industries
1 Spring St (GPO Box 4440)
Melbourne, Victoria, Australia 3001
Telephone: +61 3 9658 4193
Facsimile: +61 3 9658 4916
Email: dpi.etis@dpi.vic.gov.au
Website: www.dpi.vic.gov.au/etis
