Funding crucial for geothermal development in Australia
At the Australian Geothermal Energy Association's annual conference, funding is described as critical and that funding sources for geothermal developers need to come from a combination of areas including the equity markets, joint venture participation and government grants.
At the Australian Geothermal Energy Association’s Geothermal Conference in Brisbane, Terry Kallis of Petratherm spoke on behalf of the industry when he said that: “Funding is critical and funding sources for geothermal developers need to come from a combination of areas including the equity markets, joint venture participation and government grants,” said Kallis.
“In simple terms, in order to confidently enter a proof of concept for an engineered geothermal systems project, a total of at least $30 million in funding is required.”
He expects that activity in the geothermal sector will accelerate considerably during 2010 on the back of renewed interest in renewable energy, the geothermal sector specifically and an improving economic situation in Australia and overseas.
“A very supportive regulatory environment will be in place for the geothermal industry including areas that govern licencing and permits, the renewable energy target and the Carbon Pollution Reduction Scheme,” said Kallis.
He believes that changes to the rules that apply to the National Electricity Market (NEM) will occur and at an industry level an increased level of transparency will be seen through both the current Geothermal Code reporting on resources and reserves and the further development of standardised economic assessments of project potential.
“Beyond 2010 the potential for geothermal is quite clear,” said Kallis, “it is enormous and not unlike coal seam gas, I believe geothermal energy power generation will have a major impact on the Australian energy market, in particular the NEM.”
“In addition, I envisage significant industry consolidation with new and larger players entering and significant progress on technological issues being made over the next decade.”
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Source: Australian Journal of Mining