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What is geothermal energy?

Geothermal energy is heat from the Earth. It is a renewable energy source with multiple applications including heating, drying and electricity generation.

How is geothermal energy produced?

Geothermal systems extract the Earth’s heat in the form of fluids like steam or water. The temperatures achieved determine the possible uses of its energy.

Geothermal energy in Australia

Australia has considerable geothermal energy potential, however the electricity produced is not financially viable in Australia due to three challenges:

  1. finding it: identifying suitable geothermal resources
  2. flowing it: producing hot fluid from the geothermal reservoirs at a high rate
  3. financing it: overcoming the significant up-front capital costs associated with enhanced geothermal system technologies and the cost of transmitting electricity from remote locations.

How are we supporting geothermal energy projects?

Our purpose is to support the global transition to net zero emissions by accelerating the pace of pre-commercial innovation, to the benefit of Australian consumers, businesses and workers. By connecting investment, knowledge and people to deliver energy innovation, we are helping to build the foundation of a renewable energy ecosystem in Australia.

The projects we have funded uncovered significant barriers in Australia, which helped inform energy developers and policy makers. This included a 1MWe pilot plant that ran at Innamincka Deeps in South Australia from April to October 2013.

Knowledge sharing

Knowledge Bank iconWe share knowledge, insights and data from our funded projects to help the renewable energy industry and other projects learn from each other’s experiences.

Read geothermal project reports in the Knowledge Bank

Explore our projects

Learn how we work with renewable energy technologies

Last updated 08 February 2024
Last updated
08 February 2024


Geothermal heat pumps at western Sydney estate

An old technology is proving its potential at a new Sydney housing estate.

Eco friendly heating and cooling beneath our feet?

While the earth’s surface bakes in summer and freezes during winter, just a few metres underground temperatures are stable all year around.

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