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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2009-09-10 Daily Xml
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GEOTHERMAL ENERGY

The Hon. R.P. WORTLEY (14:51): I seek leave to make a brief explanation before asking the Minister for Mineral Resources Development a question regarding geothermal energy.

Leave granted.

The Hon. R.P. WORTLEY: I understand that the South Australian government has taken a proactive approach to supporting renewable technologies. This includes support for solar, wind and geothermal energy projects. When it comes to geothermal, the majority of Australia's engineered systems projects are located in this state. Will the minister please provide an update on progress in the area of developing hot rocks technology within South Australia?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business) (14:52): I thank the honourable member for his important question. I was delighted to join the Premier and the federal Minister for Resources and Energy, Martin Ferguson, last month at the official launch of Petratherm's Paralana geothermal energy project in the north of the state.

This proof-of-concept project near the Beverley uranium mine is further enhancing South Australia's deserved reputation as the nation's leader in the development and implementation of renewable energy sources. A successful trial will allow Petratherm to unlock an emissions-free renewable source of energy from deep within the earth to generate base-load power in remote areas of the state.

Petratherm's Paralana trial is an important step towards tapping the vast potential for competitive, renewable, emissions-free, base-load power from geothermal resources. If successful, Petratherm's Paralana project will be a key contributor to the vision posed by the Australian Geothermal Energy Association of generating between 1,000 and 2,200 megawatts of Australia's base-load capacity from hot rocks by 2020.

Geothermal power generated far from the national grid will eventually allow emissions-free electricity to be supplied to Heathgate's Beverley uranium mine, ending that project's reliance on fossil fuels. Geothermal technology seeks to generate electricity by injecting water deep into the earth where it can be heated by naturally occurring hot rocks and returned as steam that can drive turbines.

The Paralana project involves drilling 11 wells to attain sufficient reservoir development to fuel a 30 megawatt commercial-scale demonstration plant for power generation by 2015. This government has directly supported Petratherm with a total of $240,000 in grants from the Plan for Accelerating Exploration (PACE) scheme. This funding from the PACE collaborative drilling program has complemented grants from the commonwealth government to support geothermal projects.

There is certainly no doubt that when it comes to geothermal, or 'hot rocks' technology, Australia is a global pacesetter, and the majority of this nation's projects are located within our state. Since this government came to office 7½ years ago, 97 per cent of the estimated $325 million spent on geothermal exploration and proof-of-concept projects in this country has been invested in South Australia.

Up to the middle of last month, South Australia has attracted 28 companies that will invest an estimated $874 million in the term from 2002 through until 2013 to define the vast resources in 271 geothermal licences.

In fact, the first three major geothermal projects in Australia are all underway in this state. The projects are Geodynamics' world-class hot fractured rock resource in the Cooper Basin, Panax Geothermal's planned Salamander Well near Penola in the Otway Basin and the exciting operation at Paralana. This truly emission-free power source offers huge potential to deliver baseload electricity without the variability factors that affect solar and wind energy.

It will play an increasingly important role in helping South Australia reach the globally ambitious target announced recently by the Premier of lifting our state's energy production from renewable sources to 33 per cent by 2020. That is an objective that is well above the national target outlined by the Prime Minister, Kevin Rudd, of 20 per cent by 2020.

The level of investment in geothermal projects in South Australia is not simply the result of us having hotter rocks than the rest of the world. It has come about because the South Australian government has taken an active role in supporting and developing renewable technologies. The supportive legislative frameworks and efficient regulation procedures that we have put in place ensure that environmentally sustainable development investment is welcome in this state.

Primary Industries and Resources SA continues to provide leadership for the Australian Geothermal Energy Group and represents and reports for Australia to the International Energy Agency geothermal cluster. South Australia is also providing expert coordination for the Intergovernmental Panel on Climate Change's special report on renewable energy. In addition, this government recently established a $20 million renewable energy fund for South Australia.

The first funding to be committed under this initiative is $1.6 million for the establishment of a new world-class centre for geothermal energy research at the University of Adelaide. This government is pleased to work closely with the commonwealth and with enterprises such as Petratherm, Geodynamics and Panax Geothermal to help realise our vision of cleaner and greener energy sources for Australia.

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