Legislative Council Fifty-First Parliament, Third Session (51-3) 51 3 Parliament of South Australia Legislative Council published Question Time Geothermal Energy GEOTHERMAL ENERGY The Hon. I.K. HUNTER Legislative Council GEOTHERMAL ENERGY The Hon. I.K. HUNTER (14:42): Will the Minister for Mineral Resources Development update the chamber on the level of investment in detecting and harnessing geothermal energy in our state? The Hon. P. HOLLOWAY Legislative Council Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business GEOTHERMAL ENERGY The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business) (14:42): As all members would be aware, our state is a world leader for investment in hot rock geothermal energy projects. South Australia has attracted about 96 per cent of the investment in geothermal projects in Australia to date, and is forecast to sustain this lead with more than $700 million of the expected $1 billion to be invested in geothermal licence work programs in the term 2002-13. As of today, more than 70 per cent of the 366 geothermal licence areas applied for in Australia are located in South Australia. In particular, I am delighted that Tata Power, TruEnergy and AGL have recently been added to the impressive list of companies investing in geothermal projects in South Australia. Tata Power joins Origin and Sentient-SunPower as cornerstone investors in Geodynamics, underpinning the most advanced hot rock engineered geothermal system project in the world—the Habanero-Jolokia-Savina project in the Cooper Basin in the state's far north-east. Tata Power is one of the flagship companies of the Tata Group and is India's largest integrated private sector power utility, with an installed generation capacity of more than 2,300 megawatts and considerable plans for growth. In July this year, the Premier and I were pleased to welcome Tata Power's Managing Director and CEO, Mr Prasad Menon, and his Tata Power executive colleagues, to South Australia, along with Geodynamics executives led by their Chairman, Mr Martin Albrecht, and Managing Director, Mr Gerry Grove White. It is gratifying to know that Tata Power includes Geodynamics and its hot rock project in South Australia in its growth strategies. These plans for growth also include Geodynamics and Tata Power jointly leveraging knowledge gained in South Australia into their international projects. AGL is also a cornerstone investor in, and a joint-venture partner with, Torrens Energy to work towards deep drilling and proof-of-concept projects in South Australia. Likewise, it is tremendous news that TruEnergy has joined Beach Petroleum as partners in Petratherm's Paralana project in South Australia. Petratherm is also leveraging knowledge gained in South Australia into their international projects, in Spain and China in particular. I would like to take this opportunity to congratulate Terry Kallis, Petratherm's Managing Director, and his team, for securing a Weatherford drilling rig to begin deep drilling and the proof-of-concept phase of Petratherm's heat exchange within insulator, or HEWI, hot rock project at Paralana early in 2009. Once successful, the Petratherm-TruEnergy-Beach Petroleum joint venture is to supply power to Heathgate Resources' Beverley uranium mine in the second half of 2010. These are important milestones for Australia's geothermal sector. The financial strength and experience of well-established energy companies are now backing geothermal explorers in this state. Now we have two companies in South Australia, Geodynamics Limited and Petratherm, to have taken the critical step of importing equipment essential to move on to the stage of deep drilling to prove geothermal energy can fuel electricity supplies in Australia. I further understand that Panax Geothermal Ltd, also a South Australian geothermal licence holder, intends to use the Weatherford rig that has been brought into the country by Petratherm. The mobilisation of deep well drilling equipment to Australia's hot rock sites also bodes well for the efficient use of the federal government's laudable $50 million Geothermal Drilling Fund. Deep drilling is a key enabling step towards realising the vision of geothermal power adding significantly to Australia's supplies of safe and secure energy. South Australia is richly endowed with hot rocks, and it is encouraging that well credentialed companies are investing to tap the enormous potential to generate base load power using the renewable and emission-free geothermal energy on offer in this state. Australia's geothermal energy sector has matured and now has both a peak industry representative organisation—Australian Geothermal Energy Association (AGEA)—and a whole of sector alliance, including industry, relevant government agencies and research organisations from across Australia working together as the Australian Geothermal Energy Group. I would like to compliment PIRSA's Petroleum and Geothermal Group for its stewardship of the AGEG, its effective investment attraction and regulation of geothermal licence holders, and for its effective outreach to build credible awareness of Australia's geothermal sector amongst Australian and international investors. I also acknowledge the bipartisan support provided by the Council of Australian Governments Roadmap for Geothermal Technologies and the federal government's Geothermal Industry Development Framework, instigated in March 2007. That framework is now in the last phase of public consultation and is due to be published in its final form in 2008. On the basis of this continuing growth in investment, I believe that Australia can become a world leader in hot rock geothermal energy development. This government will continue to provide non-parochial leadership on the path to establishing geothermal energy reserves of national significance. It is fantastic for this state to be able to leverage its comparative advantage in the form of naturally occurring hot rock geothermal resources through a supportive, government designed investment framework. This supportive framework provides pre-competitive data, effective marketing and attractive incentive programs, including tied grants for geothermal research and PACE co-funding of exploration projects. This government also welcomes the federal government's industry support through grants to geothermal energy projects.