| Abstract |
Nationally, over the January 2000 through May 2011 term, 56 companies have applied for 411 license areas (covering 474,000 km2) to progress proof-of-concept amagmatic Engineered Geothermal System (EGS) and Hot Sedimentary Aquifer (HSA) projects. In the 9 year term 2002–2010, more than Au$670.7 million (US$672.99 million1) has been spent on studies, geophysical surveys, drilling, reservoir stimulation and flow tests which comprise the work programs required to sustain tenure in geothermal licenses areas. In the term 2011–2015, with sustained drivers for low emissions energy supplies, the work program investment for Australian proof-of-concept geothermal projects is forecast to exceed Au$2,527 million (US$2,535 million). Australia’s geothermal projects are focused on developing both EGS and HSA plays to generate electricity and power industrialscale direct use applications (including coal drying, mine water recycling, large scale air conditioning, and desalination processes). There is evidence of an increasing interest in small and large-scale Ground Source Heat Pumps (GSHP). Progress towards large-scale commercial deployment of Australian geothermal resources is underpinned with more than Au$296 million (US$297 million) in Australian Commonwealth and State government grants, which meets up to half of the cost of the private sector’s field efforts. This includes Au$59 million (US$59million) offered to support new drilling for the proof-ofconcept EGS and HSA projects and Au$178 million (US$179 million) for pre-competitive, commercial-in-scale geothermal energy demonstration projects, but excludes potential grant programs that might be implemented in the future. Key challenges remain, and are not limited to: • both EGS and HSA systems remain to be demonstrated to sustainably flow at rates suitable for commercial power generation in Australia; • the cost of Australian EGS operations need be reduced, especially those for deep drilling; • finance for low emissions technologies are still to be underpinned with certainty of the cost of reducing greenhouse gas emissions in the price of energy use; and • broadly reduced availability of equity investment in projects that have multiple, technical risks, due to the global financial crisis. These challenges contributed to slowing progress in all but three Australian geothermal energy projects in 2010. In this context: • national aspirations remain to have: at least 10 proofof- concept (deep) wells test EGS and/or HSA plays in geologically distinct locations; for at least three of these exploration projects move to a demonstration phase by circa 2015; and for the results of these projects to provide compelling evidence to justify investment in the development of Australia’s vast EGS and HSA plays; and • success (or otherwise) in raising capital for Australian geothermal projects by mid 2011 is expected to be the key factor in how many projects will enter into deep drilling by year-end 2012. This paper summarizes: (1) policies and programs implemented to support the development of geothermal projects; and (2) proof-of-concept amagmatic EGS and HSA geothermal projects co-funded by investors and governments in Australia. Success in Australia will have positive implications for similar projects, world-wide. |