Reliable well productivity will be the linchpin for success in Australian geothermal projects. Grant programs from the Australian Federal and state governments totalling AU$296 million (US$293 million) are targeting the conversion of identified geothermal resources into proven reserves via proof-of-concept and demonstration projects. Australia’s geothermal projects are focused on developing both Engineered Geothermal System (EGS) (or Hot Rock systems) and Hot Sedimentary Aquifer (HSA) plays to generate electricity, power large scale air conditioning and industrial-scale direct use applications (including coal drying, mine water recycling and desalinization processes).

Nationally, over the January 2000 through December 2010 term, applications for exploration licences have resulted in 56 companies holding 418 license areas (covering 477,000 km2) to progress proof-of-concept amagmatic EGS and HSA projects. In the term 2002 through 2010, more than AU$671 million (US$663 million) has been estimated spent on studies, geophysical surveys, drilling, reservoir stimulation and flow tests which comprise the work programs required to sustain tenure in geothermal licenses areas. In the term 2002-2015, investment for Australian proof-of-concept geothermal projects is forecast to exceed AU$3,227 million (US$3,187 million).

These collateral efforts are all directed at achieving the Australian Geothermal Energy Group’s (AGEG) aspirational targets of at least 10 successful research and proof-of-concept geothermal projects, and at least 3 power generation demonstration projects in distinctly different geologic settings by the end of 2013, with the results providing compelling evidence to justify investment in the development of Australia’s vast EGS and HSA plays (IEA-GIA, 2008). The shared vision of Australia’s peak representative organisation for the geothermal industry (the Australian Geothermal Energy Association, AGEA) and the AGEG is to see geothermal energy providing the lowest cost, emissions-free, renewable base load energy for centuries to come.

This paper summarizes: (1) proof-of-concept amagmatic EGS and HSA geothermal projects co-funded by investors and governments in Australia; and (2) policies, programs and alliances put in place to support the development of geothermal plays.

Success in Australia will have positive implications for similar projects, world-wide.

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