The operation consists of drilling two wells down to around 5km into the ground. A heat exchanger is then formed at ~5km under the surface where the temperature of the granites is approximately 270oC. The technology and concept is not new. France has the Soultz project which is considered the most advanced HDR Geothermal project in the world. Geothermal energy uses proven binary power plants and proven drilling techniques used everyday in the mining industry. What has kick started this project is SA and NSW’s recognition of HDR by granting Geothermal Exploration Licences and the Government's Renewable Energy (Electricity) Act 2000.
Geodynamics economic modelling suggests it can produce power from a 13MWe demonstration plant at around $63MW/h. This is cheaper than wind, and has simular infrastructure costs. A scaled up plant of 275MW/h is suggested to produce power at a cost of $40MW/h which is the first load based Zero emissions renewable energy source to rival the cost of conventional fossil fuels.
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