The Minister for Resources and Energy, Martin Ferguson AM MP invites geothermal companies to submit applications for funding under Round 2 of the $50 million Geothermal Drilling Program, which opened today.
Round 2 funding will provide grants of up to $7 million on a matching-funding basis to support the drilling of deep geothermal wells and help finance geothermal proof-of-concept projects.
Geothermal energy producers pump water below ground (sometimes as deep as 5 km), where it is heated by 'hot rocks'. The heat energy is then used to generate electricity.
Minister Ferguson said: "Geoscience Australia estimates that if just one per cent of Australia's geothermal energy was extracted it would equate to 26,000 times Australia's total annual energy consumption.
"Geothermal energy is a renewable energy source with enormous potential in Australia; however, the Government recognises technical development costs are high.
"The Australian Government is pleased to be able to support drilling at the first stage of development as part of its $4.5 billion Clean Energy Initiative.
"Geothermal energy is important because it has the capacity to produce baseload power, diversify Australia's energy supply and increase our energy security.
"The Australian Government has set a target for 20 per cent of Australia's electricity generation to come from renewable sources by 2020; a policy which will likely require an additional 45,000 gigawatt-hours of electricity generation from renewable sources.
"I invite geothermal companies to compete for the funding available and submit applications."
Two successful Round 1 applicants, MNGI Pty Ltd and Panax Geothermal Limited, received $14 million in April 2009.
Applications for Round Two funding close on Tuesday, 4 August 2009. Program documentation including the GDP Applicant Information Guide and GDP Application Form can be obtained from the Department of Resources, Energy and Tourism www.ret.gov.au or by contacting the GDP Program Management Team on (02) 6276 1658.