Background

Faced with the growing challenge of climate change, increasing energy demand and concerns over fuel security, governments, regulators and industry are seeking alternative energy solutions. Geothermal energy presents a realistic alternative to meeting part of current and future energy demands. However, it is at an early stage of development in Australia.

In recognition of this, the Australian Government, through the Department of Resources Energy and Tourism (DRET), has commissioned the preparation of a Geothermal Industry Development Framework and Technology Roadmap – that aims to support the growth of Australia’s geothermal industry through strategies agreed by stakeholders from government, industry and the research community.

The current status of the project, together with the prepared issues papers and mechanism to contribute to the consultation process can be found on the project website www.geothermalframework.net.au

A Project Reference Group (PRG) made up of senior members of Australian and state government departments, industry, CSIRO, Geoscience Australia, the Australian Geothermal Energy Group and the Australian Geothermal Energy Association, oversees this project.

Geothermal energy in Australia

Geothermal energy has not, to date, played a large role in Australia’s energy mix, nor has Australia in the global geothermal community. In the last decade however, interest in geothermal energy has increased significantly due to a combination of further research into the resources, and secondly due to the need to look for alternate energy sources in response to the challenges posed by climate change.

Australia’s vast hot sedimentary aquifers (HSA) and hot rock (HR) resources have the potential to become a significant, secure, renewable, base load power for the future. Preliminary work carried out by Geoscience Australia has suggested that by extracting 1 per cent of the available geothermal energy that exists between approximately 3 and 5 km depth could yield approximately 1.2 billion petajoules (PJ) which is equivalent to 26,000 times Australia’s annual primary power usage.

It is possible that there will be proof of concept HR development in Australia by 2010, demonstration of the capacity for power generation by 2012 and projections of at least 7 per cent of base load requirements supplied by geothermal resources by 2030 (Australian Geothermal Energy Group 2007).

Current uses of geothermal energy in Australia are generally direct heat uses, such as for domestic hot water, heating swimming pools, spas and fish farms. The only operational power generation plant is at Birdsville in Queensland: a binary cycle, 80 kilowatt (kW) base load geothermal power plant.

Both forms of geothermal energy in Australia differ from the ‘conventional’ hydro-thermal energy developments common in other countries. However there is overlap between the requirements for development of the different types of geothermal resources.

Energy present in HR: HR projects are focussed upon certain hot rocks. Depths within the 3 to 5 km range are typically considered as the exploration target to achieve desired temperatures. The rocks require fracture stimulation to provide pathways for thermal fluids to migrate from injection to the production well. Temperatures in excess of 250°C have been encountered in HR however such systems have yet to be brought into commercial production.

Energy present in HSA: These tend to be shallower but cooler than the HR systems, but yield large volumes of hot water without stimulation. In HSA systems, conductive energy over time has heated sedimentary aquifers containing significant quantities of water. These are accessed for direct use as well as low to moderate temperature power generation. Because of lesser drilling cost, they are better suited to small scale modular development however this does not mean they cannot also be scaled up. The challenges in these systems are more economic and methods to overcome them are evolutionary rather than requiring any major technological breakthroughs.

Both HR and HSA geothermal energy is considered ‘renewable’ in that when extraction of heat ceases, the resource regenerates. A typical HR system is shown in figure 1.

Current state of the industry

It is seven years since the grant of the first Geothermal Exploration Lease (GEL) in Australia in 2001. Nationally, 31 companies have applied for 232 licences with work programs investment in the term 2002-12 estimated to be worth $811 million (AGEG 2007). Nationwide, eight projects, operated by seven companies, have already entered the exploration drilling phase, including Geodynamics’ Innamincka geothermal HR power project; Petratherm’s Paralana and Callabonna projects; Green Rock Energy’s Blanche project; Scopenergy’s Limestone Coast project in the southeast of South Australia (now owned by Uranoz Limited, recently renamed PANAX); Torrens Energy’s Adelaide Geosyncline project; and, KUTh Energy’s Tasmanian project and Geothermal Resources’ Curnamona project.

Industry Consultation

While geothermal power could be an attractive energy alternative, it faces many challenges. These include identifying areas of exploitation, supporting technologies, technological and financial risk, ecological impacts, cultural heritage, community awareness, the regulatory environment, inter-agency jurisdictions, and investment attraction.

These challenges are viewed differently by the many different disciplines – and stakeholders – that will be required to build the geothermal energy industry in Australia. Consequently the communication strategy employed by DRET through SKM establishes a nexus between these disciplines and stakeholders to overcome the potential impediment of fragmentation within the industry. A principal aim is to gain a wide representation from potential stakeholders, allied industries and service providers.

The communication strategy used goes beyond the typical workshop approach often adopted, providing a forum where each of the stakeholder groups is engaged to provide input into the Framework. The information gained from this process is then provided to stake holders and fed back into the process in a continuous cycle.

To obtain the necessary input from all relevant stakeholders a five phased approach is being utilised.

Phase 1 - Stakeholder Analysis and Issue Identification: This involves the identification of the various relevant stakeholder groups and the development of a series of issues papers which explores and documents geothermal energy issues. Stakeholder groups include, among others, the geothermal energy industry, other energy producers, the research and development sector, education and training providers, government agencies, potential investors, the community and other interested parties such as non-government organisations, environmental and indigenous groups.

Phase 2 - Stakeholder Engagement: Stakeholders provided input into the development of the Framework through taking part in a series of structured workshops. The issues papers prepared and circulated in advance of the workshops formed the basis of discussions which were facilitated by professional facilitators and minute takers.

The purpose of the workshops was to discuss the initial analysis of the issues facing the industry, identify additional issues and potential solutions. The workshops covered both the multiple technical disciplines involved in geothermal development but also related business areas such as community consultation, legislation, financing and taxation. In addition to the workshops there was an opportunity to provide written submissions.

Phase 3 – Analysis and Reporting: Submissions and consultation from the stakeholder engagement processes will be analysed and the results collated.

Phase 4 – Review: The draft project outputs will be reviewed again by stakeholders.

Phase 5 – Finalise Framework: Feedback from the stakeholder review will be incorporated to prepare the Framework and Roadmap for DRET.

This five phase approach is outlined in Figure 6.

Framework status

Having completed a set of five workshops, the following documentation will be produced:

* a Geothermal Industry Development Framework that will outline recommendations of a non-technical nature * a Technology Roadmap that will outline recommendations for overcoming the technology barriers identified * an industry map

The Geothermal Industry Development Framework will identify opportunities for the industry and impediments to the industry’s growth together with a set of coordinated actions that will contribute towards the development of a self-supporting, sustainable and internationally competitive geothermal industry.