Geothermal energy potential generates interest

Acting Mines and Petroleum Minister Simon O’Brien said 13 valid bids were submitted for the Carnarvon Basin acreage after 81 application areas of about 6,400 square kilometres each were released to industry in August 2008.
“Submissions for the Carnarvon Basin closed in February this year,” O’Brien said.
“The land release covered some of the most strategically important areas of the State for industry.
“The region around the onshore Carnarvon Basin encompasses the vital resources operations of the Pilbara and Gascoyne, where much of WA’s wealth is generated,” he said.
Geothermal energy projects developed on these bids could be used to power mining, petroleum and industrial operations, ports and other infrastructure, as well as regional communities.
“This clean and renewable energy source could also play a big role in increasing WA’s domestic energy security,” said the Acting Minister.
The Minister said the Department of Mines and Petroleum (DMP) would assess the bids and select preferred applicants for the acreage.
He said the DMP had also reopened bidding for acreage in the Perth Basin for which preferred applicants were not selected. Submissions close on June 25th.
“The initial Perth Basin release in 2008 was WA’s first offer of acreage to explore for geothermal energy and attracted 64 valid bids over a total land area of 12,160 square kilometres,” O’Brien said.
“This was one of the most successful geothermal releases in Australia and this re-release reflects the basin’s excellent potential for ongoing development of renewable energy.”
The preferred applicants for the release applied for 36 permits, which were likely to be awarded this month.
The Minister said that more than 627,000 square kilometres, or a quarter of WA, was now open to geothermal exploration as part of the systematic release of all onshore acreage in WA.
Companies interested in any acreage are allowed to bid for multiple areas and are expected to drill at least one well to a depth of 400m within two years of obtaining a geothermal title.
The State Government has also provided funding of $2.3million for a Geothermal Centre of Excellence, to build WA’s capacity and knowledge about exploration and development of geothermal resources.

Geothermal drilling funding announced.
The Minister for Resources and Energy, Martin Ferguson, announced the successful applicants for funding under the first round of the Government's Geothermal Drilling Program.
The Geothermal Drilling Program will support the high cost of drilling deep geothermal wells by providing grants of up to $7 million on a matching funding basis. Funding will also help finance geothermal proof-of-concept projects.
Geothermal energy producers pump water below ground (sometimes as deep as 5 km), where it is heated by 'hot rocks'. The heat energy is then used to generate electricity.
Minister Ferguson said: "Geoscience Australia estimates that if just one per cent of Australia's geothermal energy was extracted it would equate to 26,000 times Australia's total annual energy consumption. This extraordinary potential is one of the reasons the Australian Government is making this investment in geothermal energy as part of the $500 million Renewable Energy Fund.
"In addition to being a low-carbon energy source, geothermal energy also has the potential to add baseload power to the Australian energy grid. This would diversify Australia's energy supply and add to our overall energy security."
"There is strong interest in the Geothermal Drilling Program and I congratulate the successful round one applicants. Unsuccessful applicants and other interested parties are welcome to submit applications in later rounds, with round 2 applications opening around mid-year."
The two successful companies are MNGI Pty Ltd and Panax Geothermal Limited. MNGI Pty Ltd - $7 million grant subject to successful offer negotiations.
The Paralana Geothermal Energy Project is an engineered geothermal system (EGS) project which aims to demonstrate a successful, robust and innovative geothermal heat exchanger in the Adelaide Fold Belt met sedimentary rocks at Paralana. It aims to prove EGS technology with the innovative heat exchanger within insulator (HEWI) model that will bring forward geothermal development and investment across Australia by considerably lowering drilling costs and risks.
Panax Geothermal Limited - $7 million grant subject to successful offer negotiations The Limestone Coast Geothermal Project is designed to deliver the first conventional geothermal energy development based on a deep and insulated sedimentary basin heated by conduction from underlying hot basement rocks. Success will prove the concept for the Limestone Coast where a resource potential of around 1500 MW has been inferred and will open up a new geothermal play for Australia. The Limestone Coast Geothermal Project is based on the concept that commercially viable geothermal reservoirs can be utilised in deep sedimentary business basis where they are buried under a thick layer of sedimentary rocks with low thermal conductivity.