The firm behind geothermal energy in Geelong has reaffirmed the credentials of the project despite multi-million dollar government grants going begging due to a lack of private investment.
Greenearth Energy yesterday confirmed it would push on with its Geelong drilling program, labelled one of Australia’s most promising projects.
On Monday Greenearth was one of four geothermal companies to announce it had passed up the Federal Government’s funding offer because it was unable to secure matching amounts from the private sector.
Due to the expiration of Canberra’s Geothermal Drilling Program, the Gillard Government rolled over the untapped money into the $126 million Emerging Renewables fund for hot-rock, wind and solar projects.
Greenearth continues to market its project as the country’s “only potential large scale, zero-emission, renewable base-load energy source” and plans to invest $104 million into the demonstration phase of the Geelong project, estimated to have the potential to power up to 100,000 Victorian homes.
Yesterday Greenearth managing director Mark Miller said the project still had a bright future despite the recent lack of market support.
“Our plans for the Geelong Geothermal Power Project and Latrobe Valley region remain unchanged,” Mr Miller said.
“Our Victorian permits and project areas remain amongst the countries most strategically attractive to develop.”
Resources and Energy Minister Martin Ferguson this week said the new fund to promote renewable projects aimed to help attract finance from the private sector to get them up and running.
The Government said the new merits-based grants would offer flexibility and were changed after consultation with the renewables sector.
“For emerging technologies this flexibility is critical,” Mr Ferguson said
“It will ensure government support is tailored to the needs of industry as they evolve over time, while also putting in place the appropriate safeguards for taxpayer-funded investments.”
Greenearth said it would also continue negotiations with the State Government to secure a slice of Spring Street’s $25 million grant for geothermal exploration and demonstration.
