By Renewable Energy Focus staff
The tax deduction has come about by extending the tax deduction for exploring or prospecting for minerals, petroleum or quarry minerals. By extending the definition of ‘exploration’, the Government hopes to ensure that geothermal energy receives the same treatment as traditional energy sources.
Martin Ferguson, Minister for Resources, Energy and Tourism, says: “The amendment to the tax law is a win for the geothermal industry in Australia that will help remove barriers to investment in geothermal energy and improve the economics of geothermal exploration.
“The potential importance of geothermal to Australia’s energy future mix is significant with estimates from Geoscience Australia suggesting that if we were able to extract just one percent of Australia’s geothermal energy, it would be equivalent to 26,000 times Australia’s total annual energy consumption.”
He adds: “The Government has also given its in-principle support to provide a more sustainable stream of funding for Geoscience Australia.”
Under the A$5 billion Clean Energy Initiative, the Australian Government already provides support for the development of geothermal energy through the Australian Centre for Renewable Energy. It has also committed over A$200 million in direct funding to accelerate geothermal energy technology development, demonstration and deployment in Australia, and leverage investment of A$720m.