Geothermal Energy Search Tops A$430 Million in South Australia

Adelaide, May 3, 2006 (ABN Newswire) - South Australia had significant potential for geothermal energy and more than $430 million has been proposed in the search for 'hot rocks' through to 2011, according to Primary Industries and Resources SA (PIRSA).

"There is realistic scope for geothermal energy to fuel a significant proportion of Australia's electricity supplies," PIRSA's Director of Petroleum, Mr Barry Goldstein, told the 2006 Paydirt SA Resources and Energy Investment Conference today.

Mr Goldstein said there was a lot of exploration interest in South Australia's geothermal energy belt that encompasses much of the eastern part of the State and has a particular focus in the far northeast.

Eleven companies have already applied for a total of 76 Geothermal Exploration Licences (GELs) covering more than 35,000 square kilometres of the State.

"Whilst it may not eventuate, the aggregate investment for work programs in these GELs over the next five years is estimated to be more than $438 million - and that is an estimate that excludes any demonstration plants or up-scaling work on the road to commercialisation," Mr Goldstein said.

Geothermal energy is regarded as extremely attractive in a world in which climate change is demanding low emission energy sources. Mr Goldstein told the conference that, when plotted as carbon dioxide emissions per megawatt hour and electricity generation costs per megawatt hour, geothermal energy comes in first at about $60 per megawatt hour - placing it ahead of nuclear power.

"Just one GEL has the hot rock emission-free energy potential to yield electricity equivalent to several Snowy Mountain hydro-electricity schemes," Mr Goldstein said.

Source:
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