A project to exploit geothermal heat as an energy source in Taiwan was started in 1976 under the direction of David Wang, a specialist who has 10 years experience at a geothermal power plant in California in the United States. When Dr. Shu Shien-siu, Chairman of National Science Council, informed him that geothermal springs can be found all over the island, Wang decided to give up his annual US$30,000 salary and return to Taiwan to establish a geothermal power plant for his fatherland.

To start the project, in February 1977, Wang organized a special group to undertake the field work. By the end of the year, the group had renovated an old high pressure non-condensing turbo-generator formerly used by the Taiwan Sugar Corporation in the Chingshui area of Ilan County in northeastern Taiwan. Other up-to-date equipment was later added to establish a pilot plant at a total cost of NT$4.8 million (US$133,000), and a test-run was undertaken Oct. 30, 1977. Steam with a pressure of 8 kg/cm2g and a temperature of 170℃ was drawn from well No. IC-4 to generate about 500 KW of electricity.

The National Science Council plans to develop the geothermal power project in three stages from test-run plant through pilot stage and finally into a large-scale plant generating electricity for household, business and industrial use. Wang said that the second stage has already been reached. The field workers, scholars, technicians and experts plan to build another pilot plant by the end of this year, scheduled to boost power generation to more than 3 MW. If the project is successful, the team will connect the gradient wells in the Chingshui area and develop a large-scale power plant with an installed capacity of 20 to 50 MW. Several gradient and deep wells have already been drilled in the area, and the highest reservoir temperature so far recorded is 220℃. More gradient wells reaching a depth of less than 500 meters are being drilled by the Mining Research & Service Organization of the Industrial and Technical Research Institute (ITRI). Further deep wells down to 2,000 meters are being drilled by the Chinese Petroleum Corporation.

As early as 1966, the Tatun volcanic region in northern Taiwan was selected as the first target for geothermal exploration because of its accessibility and abundance of high-temperature hot springs and fumaroles. The highest sub-surface temperature recorded in the Tatun area is 293℃ and the power potential has been estimated at 100 to 560 MW. Unfortunately more extensive development of this area has been suspended due to the corrosive properties of the hot water. The steam alone, however, is far less acid, and a feasibility study to use dry steam for agricultural and industrial purposes has been going on since 1974. The main achievements of the project include a lumber drying kiln, a horticulture greenhouse, and a general laboratory for testing soil sterilization, cereal drying and shrimp and poultry culture.

At present, there are four types of power plants in Taiwan: thermal, hydraulic, nuclear and geothermal. In his deliberations, Wang bore in mind that hydraulic power requires no fuel and causes no air pollution. But its disadvantages are that it costs too much, covers too wide an area and is greatly influenced by water level, rainfall and terrain. Furthermore, hydraulic power has been exploited to the maximum in Taiwan already. Though there is great potential in the development of nuclear power, the sources of raw material are mainly overseas, and the radioactive residue is difficult to dispose of. The nation also relies primarily on imports of petroleum and coal to fuel its thermal power plants, and the undesirable effect of air pollution is inevitable. Since Taiwan is one of the most important links in the island arc system known as "the Pacific Ring of Fire" and the wide-spread occurrence of hot springs on the island indicates great potential of geothermal power, every effort will be put in to explore, develop and utilize this indigenous energy resource. "We are confident that a modern geothermal power plant will be set up in Taiwan in the near future," Wang concluded.