Geothermal energy companies say the Federal Government is holding back the deployment of technology that could save thousands of tonnes of carbon dioxide each year.
The industry says the growth of direct use geothermal technology, used for heating and air-conditioning, is being held back because it is ineligible for renewable energy credits.
Managing director of GT Power, Jenny Archibald, says granting renewable energy certificates for these projects would allow them to commence straight away.
“We have projects that could go ahead if they had just that added incentive,” she said.
“In the early stages of any industry you need encouragement, incentives to get people to come on board.
“I have one project which is just on the margin and if we had renewable energy certificates attached to it, it would make it very viable.”
Direct use geothermal replaces electricity for the purposes of heating and air conditioning by taking energy from hot aquifers underground.
Other direct use energy technology, such as solar hot water, is eligible for energy credits under the Federal Government’s Renewable Energy Target scheme.
Western Australian Greens Senator, Scott Ludlam, says the government’s failure to include direct use geothermal in the scheme unfairly disadvantages the industry.
“If you’re displacing electricity with a renewable source, then absolutely, you are entitled to be part of that scheme.”
Director of the Western Australian Geothermal Centre of Excellence, Professor Klaus Regenauer-Lieb, says the deployment of direct use technology could cut the state’s electricity use by up to a third.
“If we can provide air conditioning through geothermal power directly, we can make a significant abatement of CO2 emissions,” he said.
The Federal Energy and Resources Minister, Martin Ferguson, was not available to be interviewed. In a written statement the Minister said:
“Direct use geothermal has potential to be an important technology in reducing our carbon pollution. The Renewable Energy (Electricity) Act which establishes the [Renewable Energy Target] has always been focused on renewable energy electricity generation.”
