Victoria opens up more geothermal exploration

The government of Victoria has expanded geothermal exploration, opening up another 19 areas where companies can search for steam power in the Australian state.

Energy and Resources Minister Peter Batchelor said the new exploration areas are located mostly in the Wimmera, in the north of the state, and also in Gippsland, and cover more than 154,000 square kilometers.

"Geothermal energy has the potential to provide clean and reliable energy, with close to zero greenhouse gas emissions, because it is generated from naturally occurring heat from hot rock and water reservoirs deep beneath the earth's surface," said Energy and Resources Minister Peter Batchelor.

This new tender process follows 12 permits for geothermal exploration granted by the government in 2007 to five companies which have committed to spending a total of $64 million over five years to explore for geothermal energy sources.

GreenEarth Energy, Geogen Victoria, Granite Power, Hot Rock and Torrens Energy hold the 12 geothermal licenses issued last year, when the government offered up 74,000 square kilometers across 13 exploration areas.

For the new areas, Batchelor said the close proximity of high voltage electricity transmission lines to potential geothermal energy sources made Victoria "extremely attractive" for geothermal investment because it reduced infrastructure costs.

The government, which hopes to generate 10 percent of its power from renewable resources by 2016, has announced that clean energy projects are set to receive an increase of $72 million in the upcoming state budget.

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