“Exploration and development of geothermal projects is now a distinct energy sector in its own right in Australia,” he said.
Kallis, a newly appointed board member of Renewable Energy Generators of Australia, said at least 16 Australian geothermal energy companies were now operating.
“Most of these companies are currently focused on developing projects in South Australia, where the best thermal resources appear to exist,” he said.
“This ‘coming of age’ is driving increased levels of attention from investors, financial institutions and governments at federal and state levels.”
In March, the Federal Government began working with industry and academia to develop an Australian Geothermal Industry Development Framework, which would act as a guide to the long-term development of this emerging energy sector.
Several geothermal energy players met in Adelaide yesterday to discuss a collective approach to a range of matters affecting the sector.
Kallis said the sector must now accept responsibility for setting standards for defining and measuring geothermal energy resource and reserves.
“There is an accepted process for analysis of mining resources and also for assessing oil and gas potential, and this issue is becoming increasingly important for the geothermal sector as it seeks to quantify its resources and to build project value through staged developments,” he said.
“Project financiers, as well as investors, are seeking a better understanding with more transparency and consistency as they assess various geothermal projects.
“They need a standardised way to evaluate and assess the risks of the increasing number of hot rock projects, and the geothermal companies now active.
“For example, the number of new entrants into South Australia’s hot rock sector has climbed eightfold or so in under three years – and more entrants are expected as the climate change debate escalates and clean emission issues encourage non-fossil fuel developments.”
Kallis said the introduction of a geothermal standard equivalent to the mining industry’s Joint Ore Reserves Committee reporting code could substantially improve access to critical funding for project development.
“The industry must establish its credentials by generating data capable of being authenticated and which is built around the maxims of proven, probable and possible style criteria as it currently applies to mineral ore bodies and oil and gas reservoirs,” he said.
“Our own code can ensure Australia’s renewable energy momentum can benefit from higher investor confidence and investment levels and greater research and development impetus in terms of new technologies.”
