The Australian government has announced plans to fund geothermal development to the tune of $50 million (AUS). Through its Geothermal Drilling Program, the Australian government will provide grants of up $7 million (AUS) to organizations in need of matching funds for geothermal wells. The money will also be granted to help finance proof-of-concept projects.

Martin Ferguson, the Australian Minister for Resources and Energy, announced the program, saying that Australia has huge potential for geothermal energy, and suggesting that it can cover a significant portion of the Australian government's goal of using renewable energy for 20 percent of its needs by 2020.

"The industry indicated that these guidelines actually suited their needs because what they want to prove is a couple of successful opportunities and then hope that one of those investors is able to take it to a commercial demonstration plant which then will encourage the private sector to further invest in the industry," Ferguson told reporters.

The Geothermal Drilling Program does not have universal support, however. David Harries, a professor at Murdoch University in Perth, has suggested that not only will drilling prove expensive but that the sites best suited to generating geothermal energy are located so far from the national power grid that connecting them could be associated with prohibitive costs.

Photo — Gojca