DOES AUSTRALIA WANT GEOTHERMAL?

Geothermal to play role in nation's future energy mix
Giles Parkinson, March 8, 2010 (The Australian)

"…[Panax Geothermal] hopes to [soon] bring Australia's first commercial geothermal energy project into production…[T]he geothermal industry has been at pains to point out that [the Rudd government’s $153 million award to the geothermal industry for plant development and $50m for drilling assistance] is not nearly enough…

"…[G]eothermal wonders why it has been treated as a poor cousin to other technologies. The renewable energy target clearly favours wind and will trigger a predicted $20 billion in wind investment, and a total of $4bn in government grants has been promised to carbon capture and storage and large-scale solar…Even though geothermal is clearly better in terms of proven technology, low emissions, costs and available resources…[T]here is no further funding on the horizon…"

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"This has had a debilitating impact on investor confidence and financing options. Geodynamics and Petratherm, the major beneficiaries of the Renewable Energy Demonstration Program (REDP) grants, have both fallen around 25 per cent since those November announcements and Geodynamics is now at its lowest level since 2003. And many smaller geothermal companies have gone cap in hand to the likes of Geodynamics and Origin Energy in recent months, hoping to negotiate either a buyout or a partnership.

"…[Energy Minister Martin] Ferguson…recognised the need to ensure that geothermal plays a prominent part in the nation's future energy mix. This will please the geothermal industry, which has been doubling its representations to Canberra, concerned by delays in the creation of the Australian Centre for Renewable Energy and the distribution of remaining monies in the REDP. The industry has been citing a report…that predicts $1.5bn in direct funding assistance to geothermal over the next few years could trigger a further $16bn in geothermal investments…"

Surface heat flow. (click thru for more info on geothermal in Australia)

"Some in the industry would prefer the sort of loan guarantees that the Obama administration is using to reignite the nuclear energy industry and kick-start the development of large-scale solar. Banks are prepared to underwrite construction and development risk, but they cannot yet get their minds around some technical risks…

"New World Energy is dusting off its plans for an IPO after securing geothermal permits…[Petratherm] released data that confirmed the temperature levels at its Paralana development at about 190C at 4km, above requirements. The next stage will be a fracture stimulation next month, before a second well is drilled to provide the proof of concept required to access the REDP funding for the planned 30MW demonstration plant…Petratherm has also signed a deal with Italian energy giant Enel to develop geothermal projects in Portugal and Spain…"