Global Warming

The body of scientific work on Climate Change continues to expand and reinforce that reduction - both early and large - in greenhouse gas emissions needs to occur to if the World is to satisfactorily combat the effects of global warming.

Even the most moderate assessments have highlighted the need for greater intervention by countries around the world. Actions through aggressive renewable energy policies and targets are now being taken by numerous countries, including the large developing countries of China and India.

The reality of Climate Change now appears to be accepted and the World's attention has turned to, the key questions of: How much greenhouse gas reduction is needed? By when? At what cost? and What is the best Policy framework to achieve the reductions?

Recent independent analyses of the various renewable energy technologies have reaffirmed the competitive advantages available from geothermal energy.

The advantages of Geothermal Energy are;

• Capable of providing large-scale base load power unlike the intermittent power sources of wind and solar.
• Large reserves that potentially could satisfy Australian electricity demand for several centuries.
• Reliable, emission free and low environmental impact.

An independent report, in June 2006, from highly regarded energy specialists, McLennan Magasanik Associates (MMA) - entitled "Renewable Energy - A contribution to Australia's Environmental and Economic Sustainability " - has confirmed that geothermal energy is expected to be the lowest cost of all technologies through to 2050.

The MMA conclusions are also supported by further independent assessment by the South Australian Electricity Supply Industry Planning Council's (ESIPC) Annual Planning Report 2006 (released in July 2006) that analyzed various renewable energy technologies and low emission coal, gas and nuclear options. Geothermal Energy has been assessed as the current lowest cost renewable energy source of electricity production.

The ESIPC also notes that "….should this resource prove to be fully deliverable, the potential impact could be very significant. …..the total land coverage of the GEL's (geothermal exploration licenses) from all of the proponents (in SA) has the potential to supply all of Australia's energy needs for many decades to come."

Those independent assessments confirm that Geothermal Energy is expected to play a significant role in Australia's future greenhouse gas abatement challenge. In particular Geothermal Energy is expected to be capable of providing very competitive large scale, base load electricity into the Australian National Electricity Market (NEM).