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House of Assembly - Fifty-First Parliament, Third Session (51-3)
2009-11-18 Daily Xml
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RENEWABLE ENERGY DEMONSTRATION PROGRAM

Mr KENYON (Newland) (14:16): My question is to the Premier. Can the Premier update the house on South Australia's commercial scale renewable energy projects that have been awarded funding through the federal government's Renewable Energy Demonstration Program (REDP)?

The Hon. M.D. RANN (Ramsay—Premier, Minister for Economic Development, Minister for Social Inclusion, Minister for the Arts, Minister for Sustainability and Climate Change) (14:17): I want to take this opportunity, because I know how much renewable energy there is in his electorate, to pay tribute to Graham Gunn—

Mr Williams interjecting:

The SPEAKER: The member for MacKillop!

The Hon. M.D. RANN: My view is that Graham Gunn, 39 years a member of this parliament, deserves the very best of send-offs, and I hope we will be able to do that in the lead-up to 20 March. I think that he is someone who is held in great affection by those on both sides of this house and both sides of this parliament, and I want to take this opportunity, lest we do not have an opportunity on the final day, to say thank you to Graham Gunn. You have our affection and respect and we look forward to working with you in the future, because we know you have always put your vast electorate (the size of many European nations) ahead of partisan interest.

The Hon. K.O. Foley: Love ya Gunnie.

The Hon. M.D. RANN: Yep. On 6 November, the federal government awarded $235 million in funding under the federal Renewable Energy Demonstration Program to four successful commercial-scale renewable energy projects across Australia. I am pleased to report to this house that approximately two-thirds of this large amount of funding is coming to South Australia. It has been awarded to two geothermal projects in this state: Geodynamics was awarded $90 million for their 25 megawatt geothermal demonstration project in the Cooper Basin (up near Innamincka); and MNGI Pty Ltd (or Petratherm) received $62.7 million for their 30 megawatt geothermal energy project located at Paralana in the Far North of the state.

I was certainly very pleased to lend my support for these bids through correspondence to the Prime Minister. This is a great announcement for this state—

Mr Williams: It's old news.

The Hon. M.D. RANN: I can't believe—

The Hon. P.F. Conlon: They don't like it.

The Hon. M.D. RANN: You know, member for MacKillop, two-thirds of the federal funding for geothermal is secured for this state and the Liberals are unhappy. Spend your time planning to privatise our hospitals, because I can tell you what the people of this state will say to you again. You got caught out last time. We brought them back into the public system, and the people of this state will not want their hospitals privatised by a bunch of Liberals who cannot even decide—

Members interjecting:

The SPEAKER: Order!

The Hon. M.D. RANN: —the costing of the model.

Members interjecting:

The SPEAKER: Order! The Premier will return to the question.

The Hon. M.D. RANN: Thank you, sir. This is a great announcement for the state. South Australia holds enormous geothermal potential and has a world-leading role in pursuing proof-of-concept and commercial demonstration of geothermal resources. Unlike other forms of renewable energy, such as solar and wind power, geothermal technology is able to supply the baseload power normally generated by natural gas and coal-powered stations. Geothermal energy is expected to play a major role in the low carbon future of Australia, and we are fortunate to have some of the world's finest geothermal resources within our borders.

The South Australian government has taken a proactive approach to supporting renewable technologies in this state, and that support has included the geothermal sector. We have assisted the private sector's progress towards geothermal energy commercialisation through a variety of mechanisms. For example:

we have developed a supportive legislative framework for geothermal energy investment;

we have provided grants for geothermal exploration through our PACE initiative, which has seen a tenfold increase in mining exploration in this state; and

we have recently provided $1.6 million in funding for a world-class Centre for Geothermal Energy Research at the University of Adelaide.

South Australia also plays a national leadership role through involvement in the Australian Geothermal Energy Group, and has international involvement through representation on the International Energy Agency geothermal cluster. These efforts have helped to ensure that South Australian geothermal projects have the assistance and recognition they deserve.

Australian companies are now recognised as world leaders in the proof-of-concept phase for the development of 'hot rock' geothermal—a technology also known as Enhanced Geothermal Systems. Hot rock geothermal projects seek to generate electricity by injecting water deep into the earth where it is heated by naturally occurring hot rocks and then returned to super-heated water and steam that can drive turbines.

Geodynamics' Cooper Basin project will be the world's first multi-well hot fractured rock project. The vast resource that Geodynamics is seeking to tap with partners Origin Energy and Tata Power from India has the estimated potential to provide around 10,000 megawatts of electricity generation for greater than 50 years.

For members who are not up with electricity supply and demand issues—or the engineering and technical considerations, as are the Minister for Energy and I—they should know that 10,000 megawatts is about three times the usage that we currently have of electricity in this state. Petratherm's Paralana Geothermal Energy project is located adjacent to the Beverley Uranium Mine and is a joint venture between Petratherm, Beach Petroleum and TRUenergy Geothermal. This project is also a hot rocks project but will utilise a different technology from that of Geodynamics.

Both the Paralana site and the Cooper Basin site contain some of the highest heat producing rocks found in the world. South Australia not only has some of the hottest rocks in the world but we also have the majority of the world's current hot rock projects located in our state.

An estimated $325 million was spent on geothermal exploration and proof-of-concept projects between 2000 and 2008; 97 per cent of the spending was invested in South Australian projects. To mid-July 2009, South Australia attracted 28 companies to invest an estimated $874 million in the term 2008 to 2013. These companies are working to define geothermal energy resources in 273 geothermal licences. I am delighted about this. I am also delighted about the work that is being done in terms of biodiesel from micro-algal fuels and the opening of the pilot algal reactor just last week.

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