Australia Country Report 2012 - IEA GEOTHERMAL

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Australia Country Report 2012 - IEA GEOTHERMAL
IEA GEOTHERMAL

Australia Country Report
             2012
         IEA Geothermal
     Implementing Agreement
Australia Country Report 2012 - IEA GEOTHERMAL
National Activities
                     Chapter 8 of Draft 2012 GIA Annual Report

                                                     Australia

                                                     Habanero 4 clean up.
                                                (Photo courtesy of Geodynamics)

8.0    Introduction & Overview                                      referred to as the Eromanga Basin) which overlies the
                                                                    Cooper Basin. Total exported power generation in 2012
The use of geothermal energy for both electricity                   was 1,487MWh, of which 471Wh was provided by the
generation and direct use purposes is a recent introduction         geothermal power plant. This equates to 32% of total
to the Australian energy mix. This is largely due to                exported power output, which reduced diesel
Australia’s lack of active volcanism, and its relatively mild       consumption by about 125,000 litres and saved about 371
winter climate in the major settled areas. With recent              tonnes of greenhouse gas emissions through the year.
significant advances in enabling technologies leading to the        Geothermal generation thus constitutes less than 0.001%
development of geothermal resources such as Engineered              of National Demand which is estimated at 253851 GWh
Geothermal Systems (EGS) and Hot Sedimentary Aquifers               (BREE, 2013). Australia’s total installed capacity in direct
(HSA) elsewhere, it has been recognised however that                geothermal applications is estimated to be 30.1MWth.
Australia has substantial potential in these unconventional
geothermal resources. As a result, work is on-going to              8.1     Highlights and Achievements
define and quantify Australia’s significant potential in EGS
                                                                         No new developments were constructed in 2012
style resources associated with buried high heat-producing
                                                                          however one new production well, Habanero 4, was
crystalline basement and hot sedimentary aquifer-style
                                                                          spud and hydraulically stimulated at the Geodynamics’
geothermal resources known to be present in a number of
                                                                          Innamincka Deeps EGS Project in the Cooper Basin,
deep sedimentary basins.
                                                                          South Australia.
Currently electricity is produced from geothermal energy                 On 8 March 2012 the first successful Emerging
at the small Ergon Energy binary power station at Birdsville,             Renewables Program (ERP) grant of $1.9 million was
Queensland which has a gross capacity of 120kW and a net                  awarded to National ICT Australia (NICTA) for a $5
output of 80kW. The 98oC geothermal brine used in this                    million project to provide enhanced data for
plant is derived from the Great Artesian Basin (also                      geothermal exploration.

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Australia Country Report 2012 - IEA GEOTHERMAL
     The second geothermal-related ERP grant of $1.25               assistance for projects that increase the supply of renewable
      million to the South Australian Centre for Geothermal          energy and drive down its costs in an Australian context.
      Energy Research at the University of Adelaide was
      announced on 17 September 2012. The grant will                           Table 8.1 Status of geothermal energy use in
      contribute to a $3.54 million project to better                                       Australia for 2012.
      understand and predict the permeability of Hot                                           Electricity
      Sedimentary Aquifers.
                                                                      Total Installed Capacity (MWe)                       0.12
     An immediate tax deduction for the exploration of
                                                                      New Installed Capacity (MWe)                           0
      geothermal energy sources came into effect on 1 July
      2012. This is intended to ensure that exploration for           Contribution to National Capacity (%)
Australia Country Report 2012 - IEA GEOTHERMAL
Nationally, to the end of 2012, 52 companies had applied for            community is important, and to this end considerable
356 licence areas (covering 432,000 km2) to progress proof-             alignment exists between identified Australian research
of-concept Engineered Geothermal Systems (EGS) and Hot                  priorities and international research imperatives including
Sedimentary Aquifer (HSA) projects (Figure 8. 1). From 2002             the IEA GIA Research Annexes and International
to 31st December 2012, an estimated AU$815 million                      Partnership for Geothermal Technologies (IPGT) which
(US$834 million) has been spent on studies, geophysical                 now comprises Iceland, New Zealand, Switzerland and the
surveys, drilling, reservoir stimulation and flow tests which           United States.
comprise the work programs required to sustain tenure in
geothermal licence areas.                                               Australian geothermal industry field expenditure is
                                                                        considered as research and totalled an estimated AU$101
The current challenge for the non-conventional EGS and Hot              million (US$103 million) in 2012. Government funded
Sedimentary Aquifer sector is two-fold: to prove the resource;          geothermal research is largely conducted by government
and to prove the ability of the technologies to generate                research institutions and universities which are members
sustainable amounts of usable electricity at a commercially             of the Geothermal Research Initiative (GRI). The GRI’s aim
viable cost. At a broader scale the geothermal sector is having         is to perform research that supports the development of
difficulty in accessing capital for their projects in the current       commercial and sustainable large scale geothermal power
finance market.                                                         generation in Australia. Consequently, the GRI maintains
                                                                        close collaborative links with industry to ensure research
Over the past five years, the Australian Government has                 relevance. Research topics include, but are not limited to:
committed around AU$150 million to the geothermal energy                drilling technologies for deep, high pressure and
sector. Approximately AU$16.6 million of these funds have               temperature environments; environmental impacts (such
been released to companies thus far, as recipients are                  as induced seismicity and efficient water use); pre-drill
required to achieve certain milestones prior to payment. The            prediction and characterisation of geothermal reservoir
Australian Government has been working with companies to                potential; and innovative power generation solutions.
assist the progress of projects and has shown flexibility where         Research at these institutions is supported by both State
able in accordance with the Program Guidelines.                         and Commonwealth Government funding including the
                                                                        Australian Research Council (ARC) and Australian
                                                                        Renewable Energy Agency (ARENA). See the 2011 Annual
                                                                        Report for further detail on the GRI members and their
                                                                        research programs.

                                                                        Australian Government funding for renewable energy
                                                                        specifically is now administered through the Australian
                                                                        Renewable Energy Agency. On 12 November 2012, ARENA
                                                                        released its General Funding Strategy which states its
                                                                        principal objectives and priorities for the provision of
                                                                        financial assistance for 2012-15 (ARENA, 2012). The
                                                                        General Funding Strategy was released with an
                                                                        accompanying Investment Plan which outlines initiatives
                                                                        ARENA plans to undertake.

                                                                        The Australian geothermal sector may benefit from
                                                                        ARENA programs, such as the AU$126 million Emerging
                                                                        Renewables Program (ERP) which supports the
                                                                        development of renewable energy technologies in
                                                                        Australia across the innovation chain, and is included in
Figure 8. 1 Geothermal licences, applications and gazettal              ARENA’s portfolio of funding mechanisms. Under the ERP,
areas as at 31 December 2012.                                           at least $40 million will be available for developing
                                                                        technologies with potential to contribute to large-scale
8.4     Research, Development & Demonstration                           base load power generation, such as ocean and
                                                                        geothermal. The ARENA Chair has publicly announced to
                                                                        the geothermal sector that the focus of any ARENA
Geothermal R&D in Australia is largely focussed on
                                                                        funding for geothermal would be for pre-competitive
advancing technologies associated with unconventional
                                                                        activities such as long-term R&D and information sharing
geothermal resources (i.e. EGS and HSA). The geothermal
                                                                        that will reduce of cost of assessing the geothermal
sector recognises however that coordinating local research
                                                                        resource.
efforts with those of the wider international geothermal

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ARENA is currently administering over $150 million in              Department of Resources, Energy and Tourism (DRET),
grants for geothermal energy projects, including a                 2012. Energy White Paper 2012, Australia’s Energy
$1.9 million grant to National ICT Australia Ltd for a $5          transformation’. Commonwealth of Australia, Canberra.
million project to provide enhanced data for targeted              Accessible online at:
geothermal exploration. In addition, on 17 September               http://www.ret.gov.au/energy/facts/white_paper/Pages/
2012, Minister Ferguson announced the first official grant         energy_white_paper.aspx
from ARENA would provide $1.25 million to the South
Australian Centre for Geothermal Energy Research at the            Authors
University of Adelaide, to assist a $3.54 million project to
better understand and predict the permeability of Hot              Dr Betina Bendall
Sedimentary Aquifer geothermal resources. Throughout               Principal Geothermal Geologist
2012, ARENA continued to manage projects under the                 Energy Resources Division
Renewable Energy Demonstration Program and the                     Department for Manufacturing, Innovation, Trade,
Geothermal Drilling Program.                                       Resources and Energy (DMITRE)
                                                                   State Government of South Australia
8.5    Geothermal Education                                        Level 6, 101 Grenfell St
                                                                   Adelaide, South Australia 5000
The Victorian Department of Primary Industries awarded $1.6        GPO Box 1264
million to the Education & Demonstration of Direct                 Adelaide, South Australia 5001
Geothermal Energy (edDGE) program which is a partnership           T +61 (08) 8463 3243
between the University of Melbourne, Direct Energy Australia       F +61 (08) 8463 3229
and Geotech.                                                       E-mail: betina.bendall@sa.gov.au

8.6    Future Outlook
                                                                   Barry A Goldstein
Key activities scheduled for 2013 include completion and           Executive Director
testing of the Habanero 1 and 4 doublet at Geodynamics’            Energy Resources Division
Innamincka Deeps EGS Project in the Cooper Basin of South          Department for Manufacturing, Innovation, Trade,
Australia.     Successful demonstration of subsurface              Resources and Energy (DMITRE)
connectivity between these wells will be followed by               State Government of South Australia
commissioning of the Habanero 1MWe Pilot Plant and                 Level 6, 101 Grenfell St
longer term operational trials of the closed system.               Adelaide, South Australia 5000
                                                                   GPO Box 1264
                                                                   Adelaide, South Australia 5001
8.7    References and Websites                                     T +61 (0)8 8463 3200
                                                                   M +61 (0)413 007 365
Australian Renewable Energy Agency (ARENA), 2012. Draft            F +61 (08) 8463 3229
General Funding Strategy 2013-2014/2015-2016.                      E-mail: barry.goldstein@sa.gov.au
Available online at:
http://www.arena.gov.au/_documents/ARENA-Draft-GFS-                http://www.geothermal.dmitre.sa.gov.au/
20130424.pdf                                                       http://www.geothermal.dmitre.sa.gov.au/ageg

Bureau of Resources and Energy Economics (BREE), 2013.
‘2013 Australian energy update.’ Commonwealth of
Australia, Canberra.
Accessible online at:
http://www.bree.gov.au/documents/publications/aes/20
13-Australian-energy-statistics.pdf

Lund, J. W., Freeston, D. H. & Boyd, T. L., 2011. Direct
utilization of geothermal energy: 2010 worldwide review.
Geothermics, Vol. 40, Issue 3, pp. 159 – 180.

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To Find Out More
      If you are interested in learning more about the IEA Geothermal Programme,
                                 or you wish to join the GIA:

                            Contact the IEA-GIA Secretary
                                        Dr Mike Mongillo
                                       IEA-GIA Secretary
                                             c/o GNS
                                     Wairakei Research Centre
                                         Private Bag 2000
                                              Taupo
                                        NEW ZEALAND

                               Tel: +64-7-378-9774; +64-7-374-8211
                                       Fax: +64-7-374-8199
                                 E-mail: mongillom@reap.org.nz

                                                  OR

                                Visit the IEA-GIA Website

                                     IEA Geothermal
                      Supporting and Advancing Worldwide
                       Sustainable Geothermal Energy Use
                                     Through
                            International Cooperation

                           www.iea-gia.org
                            Cover Photo: Courtesy of Lothar Wissing

    The IEA Geothermal Implementing Agreement (GIA), also known as the Implementing Agreement for a
Cooperative Programme on Geothermal Energy Research and Technology, functions within a framework created
  by the International Energy Agency (IEA). Views, findings and publications of IEA GIA do not necessarily
        represent the views or policies of the IEA Secretariat or of all its individual member countries.

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