Australia on track to tap geothermal potential

Countries around the world, particularly those bordering and within the Ring of Fire, are weighing their options regarding geothermal energy. As it stands, geothermal energy has the global potential to generate 200 gigawatts of electricity, and the world is tapping into only 5 of it.

The United States and the Philippines lead the world in terms of geothermal development, although potential is underutilized. Nations in the Asia-Pacific region have the largest potential for growth in the geothermal sector, with some 74 GW waiting to be exploited through drilling and power plants. Japan has been slow to develop its potential, mainly due to issues with terrain, aesthetics and seismic activity however, its long dormancy is finally coming to an end.

South Korea is also preparing to boost its geothermal sector after thorough testing estimated that tapping 2 of the country's potential could provide as much energy as an entire year's demand. Australia, with more than 9 GW of regional geothermal potential at its disposal, is also pushing to increase its capacity. It currently does not rank among the top 10 nations capable of geothermal energy production.

Most geothermal development within Australia seems to be taking place after 2012, although a few projects may take off before then. Petratherm Limited plans to develop a small pilot plant near Arkaroola in South Australia starting at the end of next year. If the 3.75-megawatt MW Paralana project proves successful after completion in 2012, the company will immediately scale up the $45 million project to demonstration size before commercializing.

Initially, the new plant will supply power to a nearby uranium mine, though eventually it will be connected to local grid. Other projects are in the works as well, but Australia is in a state of flux as it determines the best routes of development through the utilization of enhanced geothermal systems, such as Paratherm's Paralana project.

Geothermal development became a hot topic in 2008 after the Australian Geothermal Energy Association's AGEA release of a report that suggested energy policies could allow for the development of more than 2 GW of geothermal power by 2020, which would cover up to 40 of the government's renewable energy targets. By then, renewable energy is projected to account for at least 20 of energy demand in Australia.

The AGEA also mentioned that developing only 1 of the region's geothermal potential could provide the country with enough energy to meet demands for more than 20,000 years. These estimates provide hopeful news as Australia depends mainly on coal for power needs and is one of the largest per capita carbon producers in the world.