GEOTHERMAL ENERGY

Mr SIBBONS (Mitchell) (14:44): My question is to the Minister for—

Members interjecting:

The SPEAKER: Order!

Mr SIBBONS: —thank you, Madam Speaker; rowdy lot, aren't they—Mineral Resources Development. Can the minister advise the chamber on how the government is supporting the development of geothermal energy in the state?

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Mineral Resources Development, Minister for Industry and Trade, Minister for Small Business, Minister for Correctional Services) (14:45): Thank you, Madam Speaker, and I want to thank the member for Mitchell for this important question. As members of this house are aware, this government has been a keen supporter of the development of geothermal energy. South Australia was the first state to introduce a regulatory framework specifically tailored to the rapidly developing geothermal industry.

I am pleased to advise that our state continues to lead by example in supporting the development of geothermal energy. The government recognises the outstanding potential of this emerging technology, and since 2005 has supported the sector with targeted grants totalling $4.39 million for precompetitive research co-funded by industry and research institutions.

These research initiatives have been focused on addressing critical challenges to the commercialisation of geothermal energy in South Australia. Grants awarded so far include:

a series of tied grants for 14 studies into geothermal research through 2005-09;

a series of Plan for Accelerated Exploration (PACE) grants totalling almost $1.1 million offered for 12 projects between 2005 and 2010; and

a grant of $560,000 from the Regional Development Infrastructure Fund to help develop the transmission infrastructure for Australia's first one megawatt engineered geothermal system power plant from Geodynamics' Habanero geothermal site to Innamincka. This power plant is expected to be the first of its kind in Australia.

In 2009-10, the state government also provided a two-year grant—

Ms Chapman interjecting:

The Hon. A. KOUTSANTONIS: —I am glad you think this is funny—of $1.6 million to underpin the start-up of a South Australian Centre for Geothermal Energy Research at the University of Adelaide.

Ms Chapman interjecting:

The SPEAKER: Order!

The Hon. A. KOUTSANTONIS: The centre is now up and running under the capable leadership of its director, Dr Martin Hand. I am pleased to announce today that a further $2 million worth of funding has been made available to boost priority geothermal research at the South Australian Centre for Geothermal Energy Research for the next three years.

Thanks to the financial and regulatory support by this government, South Australia is now a world leader in geothermal energy. The fact that South Australian geothermal licences have grown from three in 2004 to 238 as of May 2011 is evidence of this.

South Australia has also attracted 87 per cent of all investment in Australian geothermal energy exploration projects between 2002 and 2010. I am advised that this is $582 million of the total $670 million available. South Australia is home to three of the most advanced geothermal projects in Australia: Geodynamics in the Cooper Basin; Petratherm in the northern Flinders Ranges; and Panax Geothermal in the Otway Basin.

Furthermore, South Australia's geothermal projects are being recognised internationally as amongst the most important geothermal projects in the world. These outcomes confirm the geothermal industry's perception that South Australia is the preferred destination to explore emissions-free renewable geothermal energy resources. It is a reputation—

Ms Chapman interjecting:

The Hon. A. KOUTSANTONIS: —yes, and the Fraser Institute ranks us No. 1 in the world—this government will continue to pursue, and I hope that the member for Chaffey understood all of that.

Members interjecting:

The SPEAKER: Order! The member for Kavel.