Legislative Council
The Hon. SANDRA KANCK: I seek leave to make an explanation before asking the Attorney-General, representing the Minister for Primary Industries, Natural Resources and Regional Development, a question on geothermal energy.
Leave granted. The Hon. SANDRA KANCK: My office has been contacted by Saracen Mineral Holdings Limited. That company is eager to evaluate the viability of establishing a geothermal electricity industry in South Australia. Geothermal electricity can be generated by pumping water into substrata rock beds at extremely high temperature. The very hot water is then returned to the surface via a second hole and used to drive a conventional steam turbine. At present the process of geothermal generation is not cost competitive with conventional means of generating electricity, but it is very clean energy producing no greenhouse gases. Furthermore, Saracen is hopeful that it has identified means of making this type of electricity generation economically viable. In pursuit of its commercial objectives, Saracen applied to PIRSA for two exploration licences covering sections of the Cooper Basin. The applications were lodged under the Mining Act because the areas concerned were vacant with respect to exploration and mining tenements under the Mining Act and already subject to blanket tenure under the Petroleum Act. The applications were rejected because geothermal energy did not fall under the current definition of `minerals' as outlined under the Mining Act. Saracen was informed that the applications would be processed under the Petroleum Act. As noted, the Cooper Basin partners already have blanket tenure of the region under the Petroleum Act, and the Act does not provide for a separation between geothermal energy and petroleum at tenement level. Hence, Saracen will be prevented from investigating the viability of Australia's most prospective geothermal region. The exploration of that capacity will be left to companies that may or may not have the interest, expertise and commitment to effectively explore the geothermal alternative. It is also important to note that the Queensland Department of Mines and Energy accepted an application by Saracen for a tenement under its Mining Act and, in New South Wales, geothermal energy is deemed a mineral. Queensland and New South Wales are energy resource rich States, while South Australia is energy resource poor. The development of alternative sources of energy should be a priority for this State. Furthermore, Saracen intends to apply for Federal Government grants from the Australian Greenhouse Office to assist in its research but, unless there is a change of policy, these grant applications will be based on Saracen's Queensland tenements. It is in this State's interests to have our geothermal energy capacity evaluated. Saracen is eager to do just that. The department should be assisting Saracen—not obstructing it. Will the Minister direct PIRSA to classify geothermal energy as a mineral? If not, why not?The Hon. K.T. GRIFFIN: I will refer the honourable member's question to my colleague in another place and bring back a reply.