new geothermal search

Last Update: Saturday, May 5, 2007. 2:20pm (AEST)
Tas search for geothermal power

A Sydney-based mining company is investigating the potential for employing geothermal energy in Tasmania.

A subsidiary of Allegiance Mining is to spend $150,000 exploring rock formations on parts of the state's west coast to see if it can tap hot water and steam from deep underground to power generators.

Within five to ten years, the company is hoping to be able to sell the geothermal energy into the national electricity grid.

The Tasmanian Government has granted an exploration licence covering almost 3,000 square kilometres near Rosebery.

Deputy Premier Steven Kons says the initial reviews are encouraging.

"There's documented evidence showing that high heat flows emanating from the west coast granites are a suitable source of energy when water runs over these rocks, this heats them and causes steam," he said.