Status of Geothermal Exploration and Research in Australia

1
Status of Geothermal Exploration and Research in
Australia
Barry Goldstein Tony Hill
2
Status of Geothermal Exploration Research in
Australia

• Geothermal energy
• National overview
• South Australias geothermal boom
• Status of drilling results
• Research Development
• Conclusions

3
Geothermal Resource Pyramid
After Hillis et al., 2004
1 km3 of 250C rock contains stored energy of 40
million barrels of oil
4
Prospective Materiality of Geothermal

• MIT (Tester, et al 2006)
• 100,000 MWe hot rock power in the USA by 2050
• 13.7 billion PJ resource to 10 km.
• 130,000 x annual primary energy use in the USA
• Cost competitive after 100 MWe (7 yrs into
  learning curve)
• Lowest cost after 200 MWe (10 yrs into learning
  curve)
• Electricity Supply Assoc of Australia (2007)
• 6.8 of Australia's base-load from hot rocks by
  2030.
• Geoscience Australia (2007, to be refined)
• Australias hot rock energy 150oC to 5 km 1.2
  billion PJ.
• 20,000 x annual primary energy use in Australia
  (2004/05)

5
Seachange

• The Australian Federal Government has set a
  National low emissions electricity target of
  30,000 GWh by 2020 and will implement an
  emissions cap and trade scheme by 2012
• Launch of 5 year AUS59m (US53m) Onshore Future
  Energy Security Program in 2006 with focus on
  petroleum, geothermal nuclear
• The Australian Federal Government has developed a
  Geothermal Industry Development Framework (GIDF)
  and Technology Roadmap which is due to be
  released in late October 2008.
• The Federal Government has announced a AUS50m
  (US45m) collaborative drilling geothermal fund
  in August 2008 that will be drawn from the 500m
  Renewable Energy Fund (REF) - (see Budd et al,
  2008 GRC Transactions)

6
Status of Geothermal Exploration Research in
Australia

• Geothermal energy
• National overview
• South Australias geothermal boom
• Status of drilling results
• Research Development
• Conclusions

7

• Below Ground Factors
• Extensive radiogenic basement at modest depths
  (heat source)
• Australia converging with Indonesia on a plate
  scale giving rise to horizontal compression and
  common naturally occurring horizontal fractures
  (reservoir)
• Sedimentary cover (insulators)
• Above Ground Factors
• Land access / title to resources
• Government stimulus for low emission renewable
  energy RDDD
• Market recognition of comparative advantages
  extensive, exploitable hot rocks
• Political will to attain energy security
  mitigate risks of climate change
• Investors perceptions of risk reward
• Growth in energy demand

Temperature at 5 km, Somerville et al. (1994)
8
The geology of geothermal systems origins of
heat and insulators
Australian Proterozoic Heat Flow 83 18
µWm-2 SAHFA 92 10 µWm-2
...the overall heat flow from the continents is
reasonably well established at 65 1.6 µWm-2...
heat flow of 48 1 µWm-2 from average
tectonically stable continental crust
Courtesy of Dr Martin Hand, Adelaide University
9
Government Stewardship (6 Oct 08)

• JURISDICTION RESPONSIBILITIES
• Onshore States the Northern Territory
• Offshore Federal legislation applies with mirror
  legislation for near-shore State/NT waters.
• To 3 Oct 2008
• South Australia
• 268 Geothermal Expl. Licences (GELs) applied-for
• 96 of national geothermal investment to YE 2007
• A718 million in work program efforts 2002-13
• Larger GELs lower fees in amended Act in 08
• Victoria
• 12 Geothermal Expl. Permits (GEPs)
• Bids on 19 GEPs closed. Bids now under assessment
• Queensland
• 27 GEPs applied-for. One granted in Gladstone
  region.

1000 km
10
Geothermal Drilling to 6 Oct 08

• Geodynamics/Origin/Tata Power/Sentient-SunPower
• 2003-5 Proved flow of geothermal energy with
  Habanero 1 2
• 2007-8 Habanero 1 - 3 closed loop flow tests,
  Jolokia 1 drilled.
• Next 1 MW demo, Savina 1 and HOTROCK50 project
• Petratherm/Beach Petroleum/TRUenergy
• 2005-7 Drilled Yerila and Paralana, deepened
  Paralana recorded MT seismic
• Next Petratherm JV to drill deep Paralana well
  starting in 2Q/09
• Green Rock Energy
• Drilled and Mini-Fracd Blanche 1 to 1935m
• Next Optimise plans for a deep well.
• Geothermal Resources
• 2007-8 drilled 6 Frome area wells up to 500m
  depth
• Next Locate a deeper test
• Torrens Energy/AGL
• 2007-8 drilled 5 of 9 wells in Lake Torrens
  region

Several others plan geothermal drilling in the
term 2009-13.

• KUTh Energy Ltd
• 31 shallow drillholes (20x20 km grid) for heat
  flow measures
• Next Holes to 1,500m, then deep drilling

• 
  Greenearth
• Gained thermal data from 4 gas wells drilled in
  07
• Next MT surveys to locate deep wells

11
Growth in Australian Hot Rock Projects (6 Oct 08)

• 40 companies hunting hot rocks
• 363 licences applied-for covering gt265,500 km2 on
  a variety of plays. More to come
• 10 ASX Hot Rock companies. More coming
• Work programs (2002-13) worth gtA1,000 million
  and this excludes upscale/deployment
• Australian Gments committed A100 million for
  research demonstration since 2000
• Gment grants for seismic drilling equate 25
  of costs to YE07
• Federal Geothermal Industry Development Framework
  (GIDF) and CoAG Roadmap for Geothermal in 2008

Investment
Licenses
Visit www.pir.sa.gov.au/geothermal/ageg
12
Status of Geothermal Exploration Research in
Australia

• Geothermal energy
• National overview
• South Australias geothermal boom
• Status of drilling results
• Research Development
• Conclusions

13
Hot Rock Projects in South Australia 6 Oct 08

• 27 companies in the hunt in 268 licences on
  variety of plays covering gt127,000 km2
• gt A718 million in work programs (excludes demo
  up-scaling for deployment
• Generalised play ingredients Amagmatic
  conductive heat source, geothermal reservoir and
  insulating cover combining to enable economic
  flow rates of sufficient heat energy to meet
  markets

• Geodynamics?
• Petratherm ?
• Geothermal Resources?
• Green Rock?
• Torrens Energy?
• Eden Energy/Terratherma?
• Panax?
• Pacific Hydro
• Teck Cominco?
• Granite Power
• Gradient Energy
• AGL ?
• TRUenergy ?
• ? ASX Listed ?International SX Listed

• Tri-Star Energy
• Clean Energy Australasia
• Osiris Energy
• Origin Energy ?
• Callabonna
• Deep Energy
• Inferus (Southern Gold?)
• A-B-L-R Joint Venture
• AAA Energy
• Earth Heat
• New World Energy
• Near Surface Geothermal
• Stuart Petroleum ?
• Beach Petroleum ?

South Australian Heat Flow Anomaly
Sedimentary cover (insulators) over basement
High Voltage Grid
Potential mining developments may be new markets
for geothermal
14
South Australian Heat Flow Anomaly

• Exceptional target for
• Geothermal Energy
• 80 higher heat flow than
• typical Proterozic crust
• Heat due to
• Thermally Anomalous
• Granite
• 11 to 62 µWm-3
• Radiogenic Iron
• Oxide
• possibly even higher
• heat generator
• Courtesy of Petratherm

15
Status of Geothermal Exploration Research in
Australia

• Geothermal energy
• National overview
• South Australias geothermal boom
• Status of drilling results
• Research Development
• Conclusions

16
Pacific Hydro
Marla
Geodynamics
Oodnadatta
Habanero 1,2
Eden
Eden
Moomba
Osiris
Proactive
Eden
Coober Pedy
Petratherm
Yerila 1
Proactive
Petratherm
Olympic Dam
Paralana 1
Eden
Green Rock
Blanche 1
Tarcoola
Leigh Creek
Proactive
Torrens
Geothermal
Port Augusta
Green Rock
Wudinna
Eden
Torrens
Port Lincoln
Petratherm
ADELAIDE
Geothermal
Osiris
Heat Flow 1,3,4
Scopenergy
Mount Gambier
17
(No Transcript)
18
Jolokia 1
Habanero 3
Habanero 1
Habanero 2
19
Geological History
20
Hottest rocks in the world in a non-volcanic
environment
21
Australias first deep geothermal wells

• Habanero 1 to 4421 m
• Habanero 2 to 4342 m
• Habanero 3 to 4200 m
• Jolokia 1 to 4900 m

22
Known fractures in Habanero wells
23
Granite exposure in Antarctica (300m cliff
height)
24
Fracture Model

• Fracture main flow path (permeability-thickness/t
  ransmissibility 1 Dm). Heat transfer mainly by
  advection.
• Cataclastic zone 10 porosity, low permeability
  (10 µD). Heat transfer by advection and
  conduction. Width 15 m in both directions from
  the fracture.
• Rock matrix Hydraulically tight. Heat conduction
  only.

rock matrix
cataclastic zone
frac
30 m
25
Habanero-1 Well Stimulation Nov 2003 - Jan 2004
www.geodynamics.com.au
26
Habanero Field Fracture Stimulation Monitoring
2003-2006
27
Habanero-1 Seismic Monitoring of
StimulationSide View
www.geodynamics.com.au
28
Habanero-3 Flow Test March 2008
Flowed at rates up to 40 kg/s formation water to
surface at 208C at 3900 psi surface pressure in
March 2008 (400 increase over Habanero 2)
29

30
Long life - expected to be greater than 50 years
based on temperature draw-down modelling
31
Closed loop testing and tracer injection

• Closed loop testing commenced 1 August
• System rapidly came to a stable configuration
• 2 August the injection pump inlet seal failed
• Recommenced closed loop testing in late August.
  Seal failure after 4 days. Expect to recommence
  in late October2008.
• Future flow rate improvements from
• Buoyancy drive
• Chemical treatment of mud losses in Habanero 1
• Fracture dilation from cooling in Habanero 1
• 6 week circulation of naphthalene sulphonate and
  fluorescein

32
Habanero 50 megawattPower proposal (HotRock50)

• Purchased 2 Weatherford Le Torneau rigs

• 50MW Power plant
• 9 wells
• 4 injection
• 5 production.
• Wide spacing.
• Jolokia 1 is 9.5km from
• Habanero 3

33
Geodynamics plan
First generation 200850MW by 2011500 MW by
2016 Expansion post 2016
Go to www.google.org/egs for 3D model of
animation of Cooper Basin EGS Project
34
Pacific Hydro
Marla
Geodynamics
Oodnadatta
Habanero 1,2
Eden
Eden
Moomba
Osiris
Proactive
Eden
Coober Pedy
Petratherm
Yerila 1
Proactive
Petratherm
Olympic Dam
Paralana 1
Eden
Green Rock
Blanche 1
Tarcoola
Leigh Creek
Proactive
Torrens
Geothermal
Port Augusta
Green Rock
Wudinna
Eden
Torrens
Port Lincoln
Petratherm
ADELAIDE
Geothermal
Osiris
Heat Flow 1,3,4
Scopenergy
Mount Gambier
35
Sedimentary Basin Over Hot Basement
36
Paralana Hot Springs 62C
37
September 2005 June 2006 Drilling
Campaign Yerila-1 Paralana-1B, Paralana -1B
DW1
38
target temperatures in the Adelaidean cover
overlying basement HEWI
109C at 1800m 50C/km
39
Yerila-1 64C at 675 m (68C/km) Paralana-1B 58
C at 485 m (81C/km)
40
Paralana Future Plans

• drill production and injection wells to 4 km and
  circulation test (Q2 2009)
• Beach TruEnergy Joint Venture 5M REDI Grant
• develop and commission 5-7.5 MW geothermal plant
  (2009-2010)
• transmission line (10 kms) to Beverley Uranium
  Mine and test to 2010
• MoU with Heathgate Resources
• towards 260 MW power plant (using 18 MW
  increments) connected to power system at Port
  Augusta via 300km 275 kV line

41
Pacific Hydro
Marla
Geodynamics
Oodnadatta
Habanero 1,2
Eden
Eden
Moomba
Osiris
Proactive
Eden
Coober Pedy
Petratherm
Yerila 1
Proactive
Petratherm
Olympic Dam
Paralana 1
Eden
Green Rock
Blanche 1
Tarcoola
Leigh Creek
Proactive
Torrens
Geothermal
Port Augusta
Green Rock
Wudinna
Eden
Torrens
Port Lincoln
Petratherm
ADELAIDE
Geothermal
Osiris
Heat Flow 1,3,4
Scopenergy
Mount Gambier
42
Geothermal Resources Frome Project - Curnamona
Craton
43
Frome Project - Gravity and Seismic
44
Geothermal Resources - Frome Geothermal Project

• Drilled 6 wells in 2007/08 to 500m
• Temperatures of 45ºC at 450m expected
  temperatures of 200ºC at 4000m
• 1800m deep drilling commenced in late September
  2008

45
1000 km
Heat Flow
Geothermal well
Geothermal well
Exploration licence
Exploration licence
Exploration licence application
Exploration licence application
Acreage offered for work program bids
Acreage offered for work program bids
HOBART
-
-
46
KUTh Energys results in Eastern Tasmanian Basin
47
Status of Geothermal Exploration Research in
Australia

• Geothermal energy
• National overview
• South Australias geothermal boom
• Status of drilling results
• Research Development
• Conclusions

48
Australian Geothermal Energy Group (AGEG)
Members http//www.pir.sa.gov.au/geothermal/ageg
AGEGS VISION Geothermal resources to provide
the lowest cost emissions-free renewable base
load and direct use energy for centuries to come.

• Company Members
• AGEA (Industry Lobby Group)
• AAA Energy
• ACILTasman
• AGL (AGL)
• Balance Energy
• Beach Petroleum
• BurnVoir Corporate Finance
• Callabonna Energy
• Clean Energy Australasia
• Deep Energy
• Earth Heat
• Earthinsite
• E-Connect
• Eden Energy (EDE) (Terratherma is a subsid.)
• Electranet
• Encom Technology
• Energycore
• Ergon Energy - owned by the Qld Government

• Geothermal Advisory Pty Ltd
• Halliburton (NYSE listed)
• Hot Dry Rocks Pty Ltd
• Hot Rock Ltd (HRL)
• Hot Rocks Tasmania
• Hydro Aluminium
• Icon Energy (ICN)
• Inferus Resources (Southern Gold subsid. (SAU)
• Intrepid Geophysical
• KUTh Energy (KEN)
• KPMG
• Monaro
• Macquarie Capital Products Limited
• Marubeni-Itochu Tubulars (Japan)
• Near Surface Geothermal Energy
• New Energy Finance
• New World Energy
• Origin Energy (ORG)
• Osiris Energy

• Syncline Energy
• Teck Cominco (Toronto Exch)
• ThermaSource
• Torrens Energy (TEY)
• Tri-Star Energy
• TRUenergy (Owned by China Light Power, HK
• VEMTEC
• Worley Parsons

• Research Institution Members
• Curtin
• Monash
• University of Melbourne
• University of Adelaide
• University of Newcastle
• University of NSW
• University of Queensland
• University of South Australia
• University of West Australia
• University of Tasmania

• Government Members
• Fed. Government (RET, GA, CSIRO, EW, CC)
• South Australia (Chair)
• Victoria
• Western Australia
• Queensland
• Tasmania
• Northern Territories
• New South Wales

ASX-Listed (Code)
85 Members and growing
49
Australian Geothermal Energy Group
(AGEG) Technical Interest Groups (TIGs)
Parallels an IEA RD Annex
50
Australian Governments have gt 100,000,000 skin
in the game AGEG Technical Interest Groups
(TIGs) in Context of EGS Project Lifecycle
51
The Geothermal Reporting Code ?
Geothermal Exploration Results, ?
Geothermal Resources and ? Geothermal
Reserves. A joint initiative of the Australian
Geothermal Energy Group (AGEG) and the Australian
Geothermal Energy Association (AGEA) has produced
the worlds first uniform code to guide the
reporting of geothermal data to the market and is
designed to underpin the quality of the
Industrys relationship with the market. The
Code is an important step for the new Australian
geothermal industry and aims to foster
understanding and a good reputation in the market
place, with investors, regulators and the public.
It follows the principles, framework and key
concepts already established by the minerals
industry and their JORC Code.  It is appropriate
that the Geothermal Industry itself has taken
this step to help govern the way it reports
publicly. To get an electronic copy of the Code
and Lexicon visit http//www.pir.sa.gov.au/geo
thermal/ageg/geothermal_reporting_code
52
The Geothermal Reporting Code ?
Geothermal Exploration Results, ? Geothermal
Resources and ? Geothermal Reserves. The
Framework The Code uses a classification taking
into account levels of geological knowledge and
confidence and Modifying Factors which directly
affect the likelihood of commercial delivery. It
makes the key distinction that 'Geothermal
Reserves' are deemed energy that is commercially
recoverable now, while  'Geothermal Resources'
require further work to be classified as
'Geothermal Reserves'.
53
REDI 2/ REF3 Grants

• Australian Fed. Gment Underpinnings
• Onshore Energy Security Initiative
• Geothermal Industry Development Framework
• Roadmap for Geothermal Technologies
• R Demo for low emissions technologies
• Emissions reduction targets ETS (by 2011)
• Renewable Energy Credits
• Reform of regulated grid rules (sought)
• Flow thru share scheme (sought)
• National feed-in schemes (sought)

Deep Drilling to Prove Hot Rock Reservoirs
Exist
AUD6 - 15 M per deep well
Fed. Grants incl REDI A30.3 million
1. PACE SAs Plan to ACelerate Exploration 2.
REDI Renewable Energy Development Initiative
3 Renewable Energy Fund
54
AGEG Research Projects (PIRSA South Australian
Grants to the University of Adelaide) The South
Australian State Government has provided a series
of tied grants to the University of Adelaide to
foster the emergence of South Australian
universities to become a hub for excellence in
innovative Hot Rock geothermal energy research,
demonstration and development projects. The most
recent studies to be instigated follow
55
AGEG Research Projects (PIRSA South Australian
Grants to the University of Adelaide) Continued
56
AGEG Research Projects (PIRSA South Australian
Grants to the University of Adelaide) Continued
57
Queensland Geothermal Centre

• In September 2007, Queensland State Government
  committed A15 million to the Queensland
  Geothermal Energy Centre of Excellence at the
  University of Queensland for research towards
  exploitation of the deep geothermal reserves of
  Queensland through four programs (1) Power
  conversion (2) Heat exchangers (3)
  Transmission (4) Resource management.

• The Centre will work collaboratively with other
  national and international research groups, and
  its specific research plans are being developed
• For further information check the Centre web site
  (http//www.uq.edu.au/geothermal/ ) or contact
  Hal Gurgenci, h.gurgenci_at_uq.edu.au, Tel 61 7
  3365 3607, Interim Director, Queensland
  Geothermal Energy Centre of Excellence

58
West Australian Geothermal Centre

• In 2008, the Western Australian State Government
  announced a grant of 2.3million to co-fund a WA
  Geothermal Centre of Excellence. The Centre
  comprises three participants CSIRO, The
  University of Western Australia, and Curtin
  University of Technology.
• The WA Geothermal Centre will focus on direct
  heat use technologies (e.g. geothermally powered
  air conditioning and desalination) for use in
  population centres where there is shallow
  groundwater of moderate temperature. Geothermal
  groundwater convection in settings such as the
  Perth basin provides a natural underground heat
  exchanger.
• Research will be organised in three interlinked
  programs

• Assessment of Perth Basin Geothermal
  Opportunities using presently available data
• Optimal use of geothermal resources
• Identification of Future Potential by going
  deeper with emphasis on
• high grading of locations with high potential for
  the development of Enhanced Geothermal Systems
• assessment of technologies (including numerical
  simulation techniques) with high potential to
  minimise costs and maximise efficiencies in the
  development of Enhanced Geothermal Systems
• environmental impacts of developing Enhanced
  Geothermal Systems, including potential induced
  seismicity that can be associated with the
  fracture stimulation of geothermal reservoirs.

For information contact Klaus
Regenauer-Lieb WA Premiers Research Fellow CSIRO
U of Western Australia E-mail
klaus_at_cyllene.uwa.edu.au

• The Centre will also offer geothermal training to
  students and industry.

59
Status of Geothermal Exploration Research in
Australia

• Geothermal energy
• National overview
• South Australias geothermal boom
• Status of drilling results
• Research Development
• Conclusions

60
Key Steps Already Taken to Drive the
Commercialisation of Geothermal Energy

• Significant exploration and proof-of-concept
  investment attracted/fostered with gt100 million
  in Federal and State grants and policy frameworks
• The Australian Geothermal Energy Group (AGEG)
  AGEG Technical Interest Groups (TIGs) formed to
  share information to commercialise geothermal
  resources at maximum pace minimum cost.
• Australia participating in the IEAs Geothermal
  Implementing Agreement
• Ten ASX listed Hot Rock Companies. More coming.
  The majority of companies in the AGEG have agreed
  to form an Industry Directorate

Key Steps That Will Drive the Commercialisation
of Geothermal Energy

• Geothermal exploration, proof-of-concept and
  demonstration projects (fostered with Gment
  Grants)
• Geoscience Australias Onshore Energy Security
  Project to infill deliver (1) a national
  geothermal database, and (2) a national
  geothermal resource assessment (including play
  maps)
• Federal Government Geothermal industry
  Development Framework due in October 2008
• Federal Governments Deep Drilling Fund
• Roadmap for geothermal energy to meet a
  significant part of Australias power demand by
  2030.
• Attractive, appropriate investment frameworks in
  all Australian jurisdictions
• Research and sharing lessons learnt to reduce
  uncertainties (nationally internationally).

61
Milestones Ahead on the Road to the Vision
Commercialised Geothermal Energy

• Several successful research (exploration) and
  proof-of-concept (heat energy is flowed)
  geothermal projects. At least 10 by 2012
• Several Geothermal power generation demonstration
  projects in distinctively different geologic
  settings. At least 3 by 2012
• Compelling success with geothermal power
  generation demonstration so the investment
  community is convinced geothermal energy is real.
  By 2012
• Safe, secure, reliable, competitively priced,
  renewable and emissions-free base load power and
  direst use from geothermal energy for centuries
  to come. At least 7 of base-load demand from
  hot rock power by 2030. More than 10 by 2050.
  Direct use widely deployed

62
SUMMARY

• Geothermal energy offers the potential of
  significant emissions-free baseload renewable
  energy
• South Australia is current focus of EGS
  exploration but other States opening up acreage
  following passing of legislation acreage
  releases
• DHSA, HSA and direct use applications gaining
  momentum focus on Perth, Otway Gippsland Rift
  Basins and Great Artesian Basin
• 40 companies testing a portfolio of geothermal
  plays
• www.pir.sa.gov.au/geothermal/ageg for links to
  Australias geothermal sector

Habanero 3 Steam Separator, August 2008
63
Acknowledgements

• Anthony Budd Geoscience Australia
• Bertus de Graaf Panax Geothermal
• Martin Hand University of Adelaide
• Richard Hillis Petratherm / University of
  Adelaide
• Bob Johnson Geothermal Resources
• Adrian Larking Green Rock Energy
• Chris Matthews Torrens Energy
• Malcolm Ward Geothermal Advisory
• Doone Wyborn Geodynamics

64
Climate Change Excites Geothermal Exploration
65
The Geology of Geothermal Systems Origins of
heat and insulators
Heat and Energy
Australia's resources of uranium amount to 40
of the worlds identifiable resource. Also
potentially a vast geothermal province Courtesy
of Dr Martin Hand, Adelaide University
Geoscience Australia AusGeo News 80
66
The geology of geothermal systems origins of
heat and insulators
Australian Proterozoic Heat Flow 83 18
µWm-2 SAHFA 92 10 µWm-2
...the overall heat flow from the continents is
reasonably well established at 65 1.6 µWm-2...
heat flow of 48 1 µWm-2 from average
tectonically stable continental crust
Courtesy of Dr Martin Hand, Adelaide University
67

• The Geothermal Reporting Code
• ? Geothermal Exploration Results,
• ? Geothermal Resources and
• ? Geothermal Reserves.
• Scope The Geothermal Code is a reporting code
  that covers the way geothermal exploration
  results, resource and reserve assessments are
  classified and publicly reported. It does not
  cover the way assessments are made.
• Geothermal Lexicon A Lexicon for Geothermal
  Exploration, Resources and Reserves has also been
  prepared to foster understanding of geothermal
  energy concepts and the methods used to determine
  geothermal resources and reserves. However, it
  does not form part of the Geothermal Code.
• Geothermal Code coverage
• all forms of geothermal energy, for example,
  conventional volcanic based energy, hydrothermal
  aquifers and hot rocks
• all uses of geothermal energy, including
  geothermal thermal energy for electricity
  generation, direct use in industrial processes or
  space heating, or as supplemental energy
• the minimum and mandatory requirements for public
  reports
• Status of the Code The Australian Geothermal
  Energy Association requires its members to comply
  with the Geothermal Code. The Code is not yet
  endorsed by the Australian Securities Exchange
  Limited or any regulator in the Australian
  financial markets and the use of the Code by a
  company or entity does not imply acceptance by
  regulators of the content of a report written
  under the Code
• To get an electronic copy of the Code and Lexicon
  visit
• http//www.pir.sa.gov.au/geothermal/ageg/geotherma
  l_reporting_code

68
The Geothermal Reporting Code ?
Geothermal Exploration Results, ? Geothermal
Resources and ? Geothermal Reserves. The
Framework The Code uses a classification taking
into account levels of geological knowledge and
confidence and Modifying Factors which directly
affect the likelihood of commercial delivery. It
makes the key distinction that 'Geothermal
Reserves' are deemed energy that is commercially
recoverable now, while  'Geothermal Resources'
require further work to be classified as
'Geothermal Reserves'.Alignment with other
Codes The Australian Geothermal Code follows the
principles, framework and key concepts already
established by the minerals industry and their
JORC Code.  For example, it adopts the principles
of Transparency, Materiality and Competence to
present investors with a baseline estimate of
what reserves and resources are available to a
given project. It is notable that the JORC Code,
and now the Geothermal Code, conform to the
International Reporting Template (CRIRSCO, 2006)
that covers the public reporting of exploration
results, resources and reserves for the global
mining industry. Feedback and Revision Process
This is the first edition of the Geothermal Code.
It is anticipated that experience and learning
with application of the Code will identify
opportunity for improvement or need for
amendment. The Geothermal Code Committee will
release updated editions as the need determines.
Feedback is encouraged and should be directed
through the Code Secretary. To comment on the
Code send an email to Mr Tony Hill, The
Secretary, Australian Geothermal Code Committee
Email Hill.TonyJ_at_saugov.sa.gov.au
69

• Geothermal Industry Development Framework
• The Australian Federal Governments Geothermal
  Industry Development Framework (GIDF) and
  Technology Roadmap
• Starts with the premise, Geothermal energy has
  the potential to provide baseload electricity to
  Australian homes and industry, without producing
  emissions of greenhouse gases and.
• Aims to support the growth of Australia's
  geothermal industry through strategies agreed by
  stakeholders from government, industry and the
  research community.
• The ten key objectives of the exposure draft GIDF
  are summarised below
• Increase investment in the geothermal industry
• Acquire and manage data specifically for the
  geothermal industry
• Develop and enhance robust networks for the
  geothermal industry
• Develop international linkages and partnerships
  for the geothermal industry
• Foster RD to support the Australian geothermal
  industry
• Foster human capital development to enable fast
  development of the geothermal industry.
• Communicate to satisfy community stakeholders,
  investors and energy market participants that
  geothermal energy is a safe, clean, cost
  competitive and reliable option in Australia's
  energy mix, with the potential to provide a
  significant share of Australia's generation
  needs.
• Foster understanding of considerations that
  contribute government policy development to so
  industry/stakeholders can effectively put its
  views to government for consideration
• Establish and implement best practice legislation
  and regulation relevant to geothermal energy
  across all jurisdictions.
• Implement the GIDF recommendations
• The GIDF is scheduled for release in 2008. To
  download the exposure draft GIDF visit  
• http//www.ret.gov.au/energy/Documents/Geothermal_
  Industry_Development_Framework_190808.pdf

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• Geothermal Drilling Program
• The Australian Federal Governments 50 million
  Geothermal Drilling Program (GDP) supports
  proof-of-concept drilling projects for the
  geothermal industry. The GDP aims to
• accelerate the development of the geothermal
  industry
• encourage growth and successful innovation by
  Australian geothermal companies by increasing the
  numbers and variety of proofs of concept
• accelerate the capacity to produce electricity
  from a variety of sources of geothermal heat
  energy
• increase investor or private sector confidence in
  the geothermal industry
• firmly establish Australia as the world leader in
  enhanced geothermal systems and
• generate national benefit for the Australian
  economy.
• The GDP provides -for- matching grants up to 7
  million for eligible, meritorious geothermal
  proof-of-concept deep drilling projects in
  Australia. The 1st round of applications opened
  in Aug 08. Subsequent rounds will arise if GDP
  funds are available. Costs of drilling, reservoir
  development and flow testing of proof-of-concept
  projects are in scope. Projects that co-ordinate/
  maximise employment of drilling equipment are
  encouraged. A desired outcome of the GDP will be
  successful proof-of-concept projects spread
  across a diversity of geography, geology and
  technology, to demonstrate the robustness of deep
  geothermal resources and technologies in
  Australia.
• For details visit
•  http//www.ret.gov.au/energy/Documents/GDP_factsh
  eet_20080813.pdf 

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Australian Federal and State Government Grants
for Geothermal Projects
The Australian Fed. Gments 5-yr A58.9 million
Australias Onshore Energy Security Program is
focused on geothermal, uranium/thorium and
petroleum resources. Geothermal projects can
compete on merit for grants from the Australian
Fed. Gments Renewable Energy Fund (REF) and
Energy Innovation Fund (EIF)
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Pressure response at Habanero 1 during Habanero 3
flow, 14-17 March 2008
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AGEG TIGs CONTINUE TO EVOLVE TO MEET PRIORITIES
TIG 3 Industry Forum now the Australian
Geothermal Energy Association (AGEA)
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Aligned International National Research
Priorities AGEG TIGs Will Reduce Critical
Uncertainties Build Trust

• Share knowledge drive complementary research
• Standard geothermal resource reserve
  definitions
• Predictive production modelling
• Predictive reservoir and stress field
  characterisation
• Mitigate induced seismicity / other HAZOPS
• Condensers for high ambient-surface temperatures
• Use of CO2 as a working fluid for heat exchange
• Improve power systems
• Education / training
• Economic modelling tools
• Technologies methods to minimise water use

• Improved / revolutionary HTHP hard rock drilling
  equipment
• Improved HTHP zonal isolation
• Reliable HTHP pumps for modest hole diameter
• Enable well longevity (20-30 years)
• Optimum HTHP fracture stimulation methods
• HTHP temperature logging tools and sensors
• HTHP flow survey tools
• HTHP fluid flow tracers
• Mitigation of formation damage, scale and
  corrosion

Also RD priorities for petroleum industry
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Australian Geothermal Energy Association

• The national industry association for the
  Australian Geothermal Energy Industry
• AGEAs Vision. Geothermal energy providing
  the lowest cost emissions-free renewable base
  load energy to Australian homes and businesses
  for centuries to come.
• AGEAs Work. Increasingly provide both
• a low cost, emissions free, baseload, reliable
  and secure supply of energy into the national
  market over the next decade and
• a reliable, low cost source of heat to drive
  energy efficiency and industrial applications.
• AGEA works with all Australian Governments, the
  academic community, relevant scientific
  organisations and the media to promote
  information about the progress of the industry
  and its capabilities.
• AGEA seeks to assist government develop prudent
  policy mechanisms that enable all forms of
  emissions free energy to increasingly penetrate
  the national energy market in line with climate
  change and energy security policy goals that are
  in the national interest.
• AGEA's membership comprises the major geothermal
  energy project developers, direct heat equipment
  suppliers and service providers to the industry.

Visit http//www.agea.org.au/