Green Rock Energy has joined forces with New World Energy to develop a large area of the Perth basin.
The joint venture estimates the basin holds several hundred megawatts of geothermal energy.
Green Rock's Richard Beresford says the company plans to start extracting energy from the wells early next year.
"We think there's certainly the resource that could underpin several hundred megawatts of geothermal power and that's really needed in the mid-west because if you look at the magnetite developers, Asia Iron, Karara, etcetera ... they're going to need several hundred megawatts of baseload power in the next few years and we think we're well placed to supply that," he said.
