Queensland is on the verge of developing an exciting source of renewable energy produced by hot dry rocks in the Earth's crust, Premier Peter Beattie and Mines Minister Stephen Robertson said yesterday.

Cabinet yesterday gave Robertson authority to introduce into State Parliament legislation that will for the first time allow geothermal exploration in Queensland.

"This initiative will help fuel Queensland's economic and jobs growth while boosting our clean energy production," Beattie said.

"Queensland is potentially the hot rock capital of Australia.

"We already have the country's only operational geothermal power plant, at Birdsville (where bore water is the heat source) and Queensland is believed to have more geothermal material than any other state or territory.

"These rocks, which are more than 200 degrees Centigrade and less than 5000m deep in the Earth's crust, have staggering potential as a power source.

"If the technology stacks up, Queensland could produce enormous quantities of virtually emission-free energy from steam created when water passes through the hot rocks.

"One cubic kilometre of rock at a temperature of 250 degrees centigrade contains about as much energy as 40 million barrels of oil.

"By establishing a legal regime for geothermal exploration, we are putting the Smart State in the box seat for an exciting new industry.

"It will attract significant new exploration and research investment to Queensland; stimulate long-term industry development and jobs growth, and put us at the forefront of emergent, leading-edge technology," Beattie said.

Robertson said there was considerable interest in the exploration and development of geothermal hot dry rock energy in Queensland.

"Queensland has vast untapped geothermal resources of hot dry rocks under favourable geological conditions, particularly in the State's south west," Robertson said.

"The temperature of the Earth's crust increases with depth but this heat is variable and can result in regional or localised 'hot spots' at relatively shallow depths (less than 5000m) where rock temperatures exceed 200 degrees Centigrade.

"If water already exists in, or can be injected into these rocks, this heated water can potentially be extracted from the ground and passed through heat exchangers and used in the production of electricity or for other industrial purposes," he said.

"The power stored in one cubic kilometre of rock at a temperature of 250 degrees Centigrade is significantly more than the entire current conventional oil and condensate resources (approx 33 million barrels) identified in Queensland.

"At this rate, energy equivalent to Queensland's entire estimated potential natural gas resources (27,500 Petajoules) could be contained in less than 120 cubic kilometres of hot rock and energy equivalent to Queensland's immense coal resources (32.7 billion tonnes) in only 3,000 cubic kilometres of rock."

Robertson said active geothermal exploration was already underway in South Australia and positive results there would generate considerable interest in Queensland's geothermal potential as early as 2005.

Traditionally, geothermal power comes from volcanically active areas like geyser fields, but in the past 30 years more than $US 500M has been invested in research in artificial geothermal systems created by fracturing hot dry rocks and then pumping water into them.

Promising trials of commercial generation from hot dry rocks are occurring in France, Germany and South Australia.

Robertson will introduce the Geothermal Exploration Bill 2004 to Parliament next week.

"The bill will provide a timely, effective and efficient regime to allow for the commencement of geothermal exploration in Queensland," Robertson said.

"It will give industry the certainty to invest in exploration as well as provide a form of tenure and regulatory structure to allow geothermal exploration to commence as soon as possible."

The geothermal exploration regime will be part of Queensland's Cleaner Energy Policy to reduce greenhouse gases by diversifying Queensland's energy mix towards the greater use of gas and renewable sources.