Winton Shire Mayor Butch Lenton said the project has the potential to save the local community up to $15 million in energy consumption a year.

Winton Council has appointed LGIS to design a geothermal energy plant which will power all of Winton’s key council buildings and has the potential to power the entire town.

Cr Lenton said geothermal energy technology had existed for more than a century but this initiative was the first time in Australia that the proven form of energy production had been adopted to deliver such wide-ranging community outcomes.

He said the plant had a payback period of less than seven years with the savings delivering much needed dollars for community projects.

‘‘Like a lot of Western Queensland our community has been hurting with a massive drought, economic hardship and a significant reduction in state and federal government funding for community services and assets,’’ he said.

‘‘So when a project comes along that can save our community millions we want to explore it thoroughly.’’

Winton Shire Council chief executive Tom Upton said that communities across western Queensland would be excited by the project.

‘‘Geothermal energy is used across the world and here we are in western Queensland we are sitting on one of the best sources of hot water in the world and not utilising its potential,’’ he said.

LGIS chief executive Jari Ihalainen said the project should not be confused with ‘‘hot rock’’ geothermal energy which drills down deep towards the earth’s core.

‘‘This technology does not change the geological or chemical composition of water supplies in the region,’’ he said.

‘‘The geothermal energy plant to be deployed in Winton will simply use the hot water flowing from existing bores and convert this heat into a sustainable long-term energy source for the town.

‘‘Advancements in geothermal energy generation have opened up the possibility of utilising water temperatures as low as 70 degrees to generate power, which is a great opportunity for those western Queensland councils located on the Great Artesian Basin.’’

LGAQ president Margaret de Wit said geothermal energy could provide an opportunity for massive savings for communities across western Queensland.

‘‘The savings can be transformative for a small community doing it hard, and come at a time when local governments are going through structural and cyclical change,’’ she said.

The final design specifications are due to be completed by the end of May.