Geelong's geothermal goldmine

via The Geelong Advertiser

Green energy could become Geelong's newest industry with a $20-million push to discover if the region is a geothermal goldmine.

Greenearth Energy Ltd yesterday launched a share offer to raise the money to further explore promising local geothermal sites.

Greenearth Energy general manger Enrico Bombardieri said a geothermal energy industry in Geelong could supply cheaper electricity and create jobs.

"It's the opening up of an exciting new industry with tremendous potential," he said.

Conventional geothermal energy has been around for thousands of years and involves tapping into natural underground hot water reservoirs.

A newer, less-proven technology involves injecting water down to about 5km underground where hot rocks, such as granite, heat the water before it returns as energy-generating steam.

Greenearth Energy hopes both systems could be used at two sites about 20km south of Geelong, one at a well, named Bellarine No.1, where Greenearth Energy's parent company, Lakes Oil, has drilled for gas; and another at Hindhaugh Creek, which was drilled in 1969.

The company wants to further investigate the sites after a geologist's report found the area was a potential geothermal energy resource.

Mr Bombardieri said if successful, the clean renewable energy could be used by local industries, including Alcoa's Anglesea power station and cement works.

If all goes to plan, the company hopes to drill in the area within two years.

Mr Bombardieri said the area was ideal because a layer of sedimentary rock had acted like a doona, insulating underground heat while its proximity to transport infrastructure and the Melbourne and Geelong markets would make it economically viable.

Geelong Environment Council president Joan Lindross said geothermal energy could be a great leap forward as long as the drilling sites did not harm protected land.

In May, Greenearth was granted three permits by the State Government covering nearly 18,800 km squared land to explore for geothermal energy in Victoria.

Two of the permit blocks were in the Latrobe Valley/Gippsland region and the third stretched from western Melbourne to Daylesford in the north and past Anglesea in the south.

All the permit areas were found to be potential geothermal energy sites.