An enhanced geothermal system (EGS) generates geothermal electricity without the need for natural convective hydrothermal resources. Until recently, geothermal power systems have exploited only resources where naturally occurring heat, water, and rock permeability are sufficient to allow energy extraction. However, by far most of geothermal energy within reach of conventional techniques is in dry and impermeable rock. EGS technologies enhance and/or create geothermal resources in this hot dry rock (HDR) through 'hydraulic stimulation'.'There are some technical difficulties and challenges there, but those people who are keen on getting Australia into geothermal say we've got this great access to resource and one of the things, interestingly, that's held them back is not having the capacity to put the drilling plants in place. And so what we intend this $50 million to go towards is to provide one-for-one dollars. Match $1 from us, $1 from the industry so that they can get these drilling rigs on to site and really get the best sites identified and get the industry going.'EGS are engineered reservoirs that have been created to extract heat from economically unproductive geothermal resources. EGS technology includes those methods and equipment that enhance the removal of energy from a resource by increasing the productivity of the reservoir. Better productivity may result from improving the reservoir’s natural permeability and/or providing additional fluids to transport heat. An enhanced geothermal system (EGS) generates geothermal electricity without the need for natural convective hydrothermal resources. Until recently, geothermal power systems have exploited only resources where naturally occurring heat, water, and rock permeability are sufficient to allow energy extraction. However, by far most of geothermal energy within reach of conventional techniques is in dry and impermeable rock. EGS technologies enhance and/or create geothermal resources in this hot dry rock (HDR) through 'hydraulic stimulation'. When natural cracks and pores do not allow economic flow rates, the permeability can be enhanced by pumping high-pressure cold water down an injection well into the rock. The injection increases the fluid pressure in the naturally fractured rock, triggering shear events that enhance the system's permeability. As long as the injection pressure is maintained, a high matrix permeability is not required, nor are hydraulic fracturing proppants required to maintain the fractures in an open state. This process is termed hydro-shearing, perhaps to differentiate it from hydraulic tensile fracturing, used in the oil and gas industry, which can create new fractures through the rock in addition to expanding the existing fractures. Water travels through fractures in the rock, capturing the rock's heat until forced out of a second borehole as very hot water. The water's heat is converted into electricity using either a steam turbine or a binary power plant system. All of the water, now cooled, is injected back into the ground to heat up again in a closed loop. EGS technologies can function as baseload resources that produce power 24 hours a day. Unlike hydrothermal, EGS may be feasible anywhere in the world, depending on the economic limits of drill depth. Good locations are over deep granite covered by a 3–5 kilometres (1.9–3.1 mi) layer of insulating sediments that slow heat loss. An EGS plant is expected to have an economical lifetime of 20–30 years using current technology. EGS systems are currently being developed and tested in France, Australia, Japan, Germany, the U.S. and Switzerland. The largest EGS project in the world is a 25-megawatt demonstration plant currently being developed in Cooper Basin, Australia. Cooper Basin has the potential to generate 5,000–10,000 MW. The Australian government has provided research funding for the development of Hot Dry Rock technology. On 30 May 2007, then Australian opposition environmental spokesperson and former Minister for the Environment, Heritage and the Arts Peter Garrett announced that if elected at the 2007 Australian Federal Election, the Australian Labor Party would use taxpayer money to subsidise putting the necessary drilling rigs in place. In an interview, he promised: The EU's EGS R&D project at Soultz-sous-Forêts, France, has recently connected its 1.5 MW demonstration plant to the grid. The Soultz project has explored the connection of multiple stimulated zones and the performance of triplet well configurations (1 injector/2 producers). Induced seismicity in Basel led to the cancellation of the EGS project there.