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Minister Ferguson addressed industry leaders in Brisbane
Thank you for inviting me today.
This event demonstrates the level of interest and activity in the Australian geothermal energy industry.
Australia faces two interrelated energy challenges - ensuring Australia's energy security and reducing carbon emissions from generation.
I hope that Australia's geothermal industry can play a role in providing clean, reliable and affordable energy as part of Australia's energy mix in future years.
Government support for the industry is designed to facilitate this outcome.
The technology
Geothermal has the potential to supply clean energy to meet baseload demand, while diversifying the sources of our energy supply and reducing emissions.
Geoscience Australia advises me that if just 1% of Australia's geothermal energy was extracted it would equate to 26,000 times Australia's total annual energy consumption.
It is a remarkable number.
It is why the Australian Government is investing so heavily in geothermal technologies.
The $50 million Geothermal Drilling Program and the Renewable Energy Demonstration Program are two examples.
The Geothermal Drilling Program will support proof-of-concept projects in Australia, and I have previously announced two successful applicants under Round 1.
I intend to announce successful Round 2 applicants in the near future.
Only last week, the Government announced it will provide financial support of more than $150 million to two large-scale geothermal projects through the REDP.
These grants will provide a major boost to the Australian geothermal industry, demonstrating for the first time the large-scale production of geothermal energy in Australia.
The Clean Energy Initiative, which was introduced in this year's Budget, is designed to complement the Carbon Pollution Reduction Scheme and expanded Renewable Energy Target.
This $4.5 billion initiative is supporting research, development and demonstration of low-emissions energy technologies.
The initiative has three parts:
- The Carbon Capture and Storage Flagships Program
- The Solar Flagships Program, and
- The Australian Centre for Renewable Energy.
A fortnight ago I announced further details around the structure of ACRE. It will be overseen by an independent board with a range of relevant skills.
A key aspect of ACRE's activities will be the support of renewable energy along the development and commercialisation chain.
I intend to introduce the ACRE legislation into Parliament in the next sitting fortnight.
ACRE will become a key Government player in developing renewable energy technologies in the future.
ACRE will also be responsible for the ongoing management of existing government programs including the Renewable Energy Demonstration Program and the Geothermal Drilling Program.
The geothermal sector in Australia is a good example of industry working side-by-side with government to secure investment and achieve our nation's goals for energy security and economic prosperity.
Along with the United States and Iceland, Australia has founded the International Partnership for Geothermal Technology.
Australia is also a member of the IEA's Geothermal Implementing Agreement.
These forums enable Australian companies and researchers to work with partners in nations that are leading the geothermal sector in the world.
Some of you have attended meetings and are beginning to reap the benefits of international cooperation. I understand that 'Team Australia Geothermal' has been a great success story.
Australian geothermal companies and organisations joined forces with my Department, Geoscience Australia and Austrade in jointly representing Australian geothermal interests at the trade show that accompanied the annual meeting of the US Geothermal Resources Council, in Reno, Nevada, last month.
I am told the Australian booth won "Best in Show" - so congratulations to all involved!
I understand that, based on the success in Reno, that the Australian industry will also be represented at the World Geothermal Conference in Bali in April next year.
Likewise, the Government - Industry partnership is also evident in the work that Geoscience Australia undertakes in the geothermal space.
In particular, Geoscience Australia's work as part of the Onshore Energy Security Program to deliver reliable, pre-competitive geoscience data and scientifically based assessments of the potential for onshore energy resources in Australia is relevant to the geothermal sector.
Announced funding
As I mentioned earlier, the Government is providing significant financial support to the geothermal industry.
Last week I announced more than $150 million to support two successful geothermal projects under the Renewable Energy Demonstration Program.
In April this year I announced the successful applicants under Round 1 of the Geothermal Drilling Program and I am following the development of those first two projects by Petratherm and Panax with great interest.
I intend to announce Round 2 successful applicants in coming weeks.
Through Round 1 of the Geothermal Drilling Program and the REDP, the Government is providing more than $165 million to leverage total investment of $550 million in Australian geothermal investment.
In turn, this investment will create further jobs and development for those businesses and institutions that support and supply the geothermal industry.
With this start, we all hope that geothermal can be proven on a commercial scale. In proving the technology on scale, geothermal could then contribute to our renewable energy aspirations.
I know the industry has identified challenges going to the geographical location of geothermal resource versus existing electricity grids.
We need to remember that a regulatory framework exists to facilitate investment in energy infrastructure such as transmission.
Furthermore, we also need to remember the immediate challenge is to prove the technology at a large scale. If we achieve this, it is then time to think about future challenges.
With the financial support the Government has announced previously, along with the intelligence and hard work shown by many of you here today, I hope that the industry can go forward and play a role in Australia's energy future.
Conclusion
Ladies and gentlemen, immense challenges present immense opportunities.
Ensuring energy security in a carbon-constrained economy is an immense challenge.
Cleaner electricity generation represent an opportunity - for investment, innovation, expertise and sustainable prosperity.
Australia's Geothermal industry is well placed to grow in coming years.
Thank you and please enjoy the conference.