(North West Star)
"Birdsville has had a long association with geothermal renewable energy and we would be pleased to be able to continue the tradition," Mrs Kiernan said.
"The new power station is being designed to incorporate the latest technology and will be able to produce between 250kW and 450kW, depending on temperature and the community's energy needs.
"This will provide enough power to manage Birdsville's base load, with the diesel generation only required to supply peak load demand."
Mrs Kiernan said the new facility will replace a 20-year-old, low-temperature geothermal power station which uses near-boiling hot water from the Great Artesian Basin to generate electricity.
"Birdsville is the only place in Australia to boast a geothermal power plant and one of only a handful of places in the world to feature a low-temperature station," she said.
"It will be built on the existing site, which draws water from an 80-year-old bore which also provides the town's water supply.
"The current geothermal generator already helps the local environment by reducing greenhouse gas emissions by about 340 tonnes a year and diesel fuel consumption by approximately 127,000 litres.
"The geothermal plant works by drawing water to the surface at 98C where it is run through a gas-filled heat exchanger which heats and pressurises the gas which then drives a turbine and alternator to produce electricity.
"The partly-cooled water is channelled into a pond for further cooling and returned to the town's water supply and lagoon.
"The design stage, due to be completed by July, will also provide full proposed costs for the new facility."
The Office of Clean Energy will provide $4.3m towards the cost of constructing the new geothermal facility.