New and emerging industries frequently require a targeted support ethos to accelerate their growth and to enable them to reach their potential. None more so than the Australian Geothermal Industry – an industry with the potential to change our assumptions about alternative power sources.

The development of new drilling technologies and the discovery of significant Hot Rock and Hot Sedimentary Aquifer geothermal resources in Australia have seen the establishment of an emerging Australian geothermal industry.

Australian geothermal energy presents a realistic option to current fossil fuel generation. To tap into this potential the Australian Government commissioned a consultation exercise to identify the challenges facing the industry with the aim of developing a framework to provide a support and opportunity for growth.

While it is mostly recognised that geothermal power is an attractive energy alternative, it faces challenges that are linked to technological and financial risk, ecological and cultural impacts and community acceptance to name a few. During the process it was recognised that these industry challenges were viewed differently by each stakeholder group and it was necessary to establish a nexus between different groups and viewpoints to stimulate engagement and reach accord.

At a practical level the nexus was developed through a series of workshops, preceded by detailed discussion papers circulated to all registered stakeholders that went far beyond the typical approach. A continuous cycle of consultation and feedback was developed to sustain a diverse group of interested and informed stakeholders representing, power utilities, drilling operators, financial institutions, law firms, insurers and regulators, not just the geothermal industry and community. These stakeholders were invited to contribute to the compilation of a ‘Geothermal Industry Development Framework.’

Design by consultation

Central to this approach is an awareness that experts and professionals don’t always have all the answers, that no one person has a monopoly of good ideas and that it is not always the vociferous that have the most to contribute!. Technicians and scientists are good at technical solutions, not always matters of people. Yet problems are rarely just technical, most are about people or affects on people and it is important to embrace the insights, experience, effort and approval that the wider community can offer. Fundamental to the approach was a realisation that better outcomes result from taking a unified approach while being cognisant of direct, indirect and cumulative consequences of projects and actions.

The consultation exercise identified a range of issues and impediments from an economic, environmental, technological and institutional perspective. From the technological perspective everything from resource identification through to scheme technical development and global and Australian research capabilities required assessing. From the institutional area research and training through to resource assessment and financing risk needed to be considered.

The process was defined around five phases

Phase 1 – Stakeholder analysis and issue identification

This phase identified the key stakeholder groups who had direct interest and influence on the growth of the geothermal industry and documented their relationships to these issues and challenges.

Issues were documented and papers tailored to each group were distributed. Communications included written submissions and focus groups.

Phase 2 – Stakeholder engagement

In phase 2, stakeholders were given the opportunity to provide input into the development of the Industry Framework through a series of structured, facilitated workshops. Again briefing papers were distributed to form the basis for discussions. Importantly, key stakeholders were communicated with on an individual basis to encourage exchange on sensitive topics.

Phase 3 – Analysis and reporting

All workshop outcomes and submissions were analysed with a view to extracting fundamental information surrounding the opportunity for growing the industry.

Phase 4 – Review

A draft Industry Framework was developed and reviewed by the Australian Government and key stakeholders. The final draft framework was then posted to a dedicated web site for comment. www.geothermalframework.net.au

Phase 5 – Finalising the framework

The fifth phase concludes the framework development and provides a real stimulus to kick start the industry growth.

Communication and consultation

The seamless integration of communications and consultative approaches and the use of push and pull information channels created the momentum necessary to achieve a high level of stakeholder engagement.

The Framework defined nine recommendations – each recommendation strengthened by a succinct set of strategic initiatives to enable rapid implementation.

The framework included:

• Strategies and discussion on increasing investment opportunities
• The importance of acquiring and managing the geo scientific data for the industry
• Strategies to develop and enhance robust networks for the industry
• Approaches to developing international partnerships
• Building expertise through research and development initiatives
• Human capital development to grow the skills and capacity necessary to fast-track establishing the industry
• Communication to aid the understand ding of the benefits of geothermal energy and to allay concerns
• Developing a clear understanding of the policy environment and the development and impact
• Creating an environment where best practice legislation can be established and implemented
• Recommendations on implementing the framework and provide on-going progress reports back to stakeholders
• The design by consultation model delivers a unique perspective on stakeholder engagement, whereby economic, social and environmental concerns support a sustainable, balanced perspective: the systems used in this case study could be applied to develop a variety of business and industry planning tools to boost early stage, energy technologies. 

Footnote:
The design by consultation model described is involving, meaningful, useful and effective and could help a promising new technology gain funding for additional research and development leading to demonstrations of commercial viability and market acceptance.

As to the future for the Australian geothermal industry? The framework provides a focal point for the industry’s evolution and it is anticipated that the industry will shortly progress to demonstration projects that will attract investment funds to launch commercial scale projects for ground-breaking geothermal energy development. In this arena at least, Australia is leading the world and the Hot Rock global geothermal community is viewing the nascent Australian geothermal industry as a role model. Just as Australia has reaped the economic benefits of their world leading position in mining, the geothermal industry in Australia has equal potential.

© Sinclair Knight Merz
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