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It is the first time this type of exploration acreage has been released in the state and follows recent changes to state legislation designed to give hot rock explorers more certainty in their investment.
Petratherm, which is currently drilling for hot rocks in South Australia, is reportedly considering bidding for the blocks. Managing director Peter Reid was in Melbourne yesterday for the launch.
He told News Ltd the Gippsland and Otway basins had the right geological features to host hot rocks, as well as good access to infrastructure.
Minister for Energy Industries and Resources Theo Theophanous said the government was keen to investigate new ways to generate energy that was both economic and environmentally friendly.
“Possible investors will now be able to assess Victoria’s geothermal potential and identify hot spots for electricity generation,” Theophanous said.
“This emerging industry also has potential to provide a more diverse energy supply.”
Theophanous is also preparing a cabinet submission to establish a $40 per megawatt renewable energy subsidy that would ultimately be paid by customers to help the state meet its target of producing 10% green energy by 2010.
Lakes Oil subsidiary Geothermal Energy Victoria will be another contender for the blocks, chairman Robert Annells told EnergyReview.net recently.
The company has been evaluating prospects in Victoria since the state’s Geothermal Energy Resources (GER) Act 2005 was enacted in June last year.
But Eden Energy, another geothermal explorer that is about to list on the ASX, will not be competing for the blocks. Managing director Greg Solomon told EnergyReview.net the company disagreed with the state’s tendering process.
“I think the Victorian Government has got it wrong making companies compete for blocks,” Solomon said.
“What works for oil and gas won’t work for geothermal. The petroleum industry is well established involving big companies with lots of money. This sector is only just getting off the ground and the companies don’t have much to spend.”
