Geo plant ‘12 months away’

Erin Pearson
by erin pearson
Victoria’s first geothermal power plant is set to begin generating power south of Geelong within 12 months, according to Greenearth Energy.
Chairman Simon Molesworth said the company would sign off on an agreement with Federal Government in the next fortnight to drill three kilometres underground for hot rocks to generate power at Gherang.
Mr Molesworth was “confident” the drilling would prove underground heat was available to run the company’s proposed geothermal energy plant.
Mr Molesworth said the drilling could begin within months.
“Time has slipped to a certain extent but if everything goes to plan we hope to commence the drilling exercise this year,” he said.
“We are looking at about three kilometres of depth and if all goes well the process should only take a few months.
“If we provide evidence there is a resource we should then see construction in the first half of 2011.”
The geothermal plan has angered a group of Gherang residents worried about environmental risks and potential for water contamination.
Mr Molesworth said ongoing community consultation was a priority.
“Most important for us now is the community and the requirements for ongoing community consultation and an environmental safeguard process,” he said.
“The site requires the drilling of two initial holes, depending on the drilling pad area, and the drilling will be located clearly away from residents and life.
“We are currently in the process of negotiating with land owners to secure a site out of the way.”
Greens MP Greg Barber said he would watch the project closely after meeting Greenearth Energy and residents.
However, he warned the project was doomed without Federal Government setting a scheme to cut carbon dioxide emissions.
“I’m interested to see how they will go with the test drill – that will determine the economics,” he said.
“In order to develop a site [Greenearth Energy] need a price on carbon and a tough target on emission reductions. The problem with what the Government is offering is they don’t have either of those things.”
Greenearth Energy must find private backing by the end of 2010 to retain more than $25 million in State Government funding.
Federal Government has also committed funding to the project.
The Independent revealed last year that the plant would have potential to produce 150 times more energy than Victoria used in a year.