Known Geology
Extensive petroleum well and seismic survey data provide detailed understanding of geology, structure and temperature.
Victorian Geothermal Energy Company Pty Ltd
Koroit Geothermal Power Project
Advancing next-generation geothermal energy in South-Western Victoria, Australia. Right Project, Right Time.
Corporate Member
About the Project
A Step-Change in Geothermal Energy
Koroit is an advanced geothermal power project benefiting from a global revolution in next-generation technologies that are driving down costs and commercialising geothermal projects worldwide.
This information has been assembled by Victorian Geothermal Energy Company to provide general information about the Company. This is in summary form and should not be relied upon as a complete and accurate representation of any matters that a reader should consider in evaluating the Company.
Advanced geothermal project at Proof-of-Concept stage
100% owned Geothermal Retention Lease (GRL007012) — second ever granted in Australia
Naturally fractured Hot Sedimentary Aquifer (HSA) — no fracking required
Potential to generate over 1,400 MW of electricity for 30+ years
Next-generation technologies driving costs toward US$50/MWh by 2030
Seeking partners and investors for Proof-of-Concept program
Why Koroit
Advantages That Mitigate Risk
Close to Market
Adjacent to a major 500kV transmission line and electricity markets in South-Western Victoria.
Granted Lease
12-year Geothermal Retention Lease (GRL007012) granted in August 2023, with pathway to extraction licence.
No Fracking Required
Naturally fractured sandstone reservoir — no hydraulic fracturing needed and no damaging seismicity.
Benefits of Geothermal Energy
- Renewable, baseload (24/7) and scalable energy
- Helps stabilise the electricity grid
- Clean and net-zero greenhouse gas emissions
- Small land footprint — 1Ha geothermal equals 35Ha solar PV
- Additional applications: industrial heat and geothermal tourism
Next-Gen Technology
Technologies Reducing Costs Now
A suite of next-generation technologies — including faster drilling with PDC bits, horizontal drilling with larger-diameter wells, and improved ORC plant efficiency — is dramatically reducing geothermal development costs.
Drilling time has fallen from over 70 days for a 3,400m well to just 16 days for a 4,805m well in 2025. Gathering pipe system costs have dropped from 24% to just 2% of capital costs.
Hot Sedimentary Aquifer (HSA), Enhanced Geothermal Systems (EGS) and Advanced Geothermal Systems (AGS) geothermal systems are commercial now. The IEA projects geothermal could grow from under 1% to 8% of global demand by 2050 — equivalent to 800 GW of new capacity.
Operating costs
Only 5%
of capital costs (typical OPEX)
70%+
Drilling cost reduction since 2021
16 days
To drill 4,805m (down from 70+ days)
US$50/MWh
Projected geothermal cost by 2030
US$3B+
Capital raised for next-gen geothermal since 2019
The Resource
1,400 MW Generation Potential
The Koroit Hot Sedimentary Aquifer holds an estimated 66,100 PJ of in-place stored heat energy, capable of generating 1,400 MWe for over 30 years using only 15% of the stored heat.
Resource Estimate (P50)
| Type | Area (km²) | Heat (PJ) |
|---|---|---|
| Indicated | 50 | 7,620 |
| Inferred | 400 | 58,500 |
| Total | 450 | 66,100 |
Key Details
- Reservoir mainly within the Pretty Hill Formation — permeable, fractured coarse to fine-grained sandstone
- Resource top at 130°C isotherm around 2.8 km depth, extending to 4 km
- Highest geothermal gradient in the Otway Basin — up to 40°C/km
- Resource estimation compliant with Australian Lexicon for Resources and Reserves (2010)
Development Roadmap
Project Phases
- Phase 1
Proof of Concept
- Update velocity, seismic and temperature models
- Complete well designs, approvals and award tenders
- Drill first deep deviated appraisal-production well (KRT-1)
- Drill second appraisal-production well (KRT-2)
- Feasibility study for ~10 MWe demonstration plant
- Phase 2
Demonstration Plant
- Development and operation of a 10 MWe demonstration power plant
- Phase 3
Production Expansion
- Development and operation of a 50 MWe generation expansion plant
- Phase 4
Full Scale
- Development of a further 400 MWe using standardised 100 MWe plant modules
Leadership
Experienced Board & Consultants
Norm Zillman
Chair (Co-Founder)
BSc(Hons), MPESA, MAusIMM
Geologist with 50 years of experience. Founding MD of Queensland Gas NL ($5B), Great Artesian Oil & Gas, Blue Energy, Hot Rock and Real Energy. Working in geothermal since 2006.
Dr Mark Elliott
Managing Director (Co-Founder)
Dip.App.Geol, PhD, FAusIMM, FAIG, FAICD, MAGA
Economic geologist with 40+ years in exploration and project development. Co-founding director of Hot Rock Ltd and several mining companies. In geothermal since 2006.
Bob Graham
Director
BEng (Mech), MBA, GAICD
Engineer with 40+ years in the electricity industry, from power stations to privatisations at Hazelwood and Loy Yang. Former director of McLennan Magasanik Associates.
Luis Urzua
Geothermal Consultant
BSc (Geol), MSc, MGRC
Geothermal geologist with 24 years experience in exploration, resource assessment and operations. Involved in drilling 40 wells to depths of up to 3,800m across multiple countries.
Randall Taylor
Geophysicist Consultant
BSc App (Geophysics), SEG, ASEG
40+ years in seismic interpretation, survey design and data-processing. Over 10 years as Chief Geophysicist for Origin Energy. Specialist in petroleum, geothermal and mineral systems.
Get in Touch
Partner With Us
VGEC is seeking partners and investors for our Proof-of-Concept program. We welcome enquiries about the Koroit Geothermal Power Project.
Dr Mark Elliott
Managing Director
Victorian Geothermal Energy Company Pty Ltd