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Greenearth Energy finalizes negation for US$6.5m drilling grant

Anglesea Beach at Geelong, Victoria/ Australia (source: flickr/ Kate's Photo Diary, creative commons)
Alexander Richter 13 Sep 2010

Australian Greenearth Energy finalizes negotiations with the Australian government for its US$6.5m Geothermal Drilling Program (GDP) grant.

Announced by the company, “Greenearth Energy (ASX:GER) has finalized negotiations with the Australian Government for its AU$7 million (US$6.5m) Geothermal Drilling Program (GDP) grant.

In late 2009, the Minister for Resources and Energy Martin Ferguson revealed five geothermal energy projects would receive Australian Government funding of AU$35 million (US$32.4m), from round two of the AU$50 million (US$46.3) Geothermal Drilling Program.

The GDP supports Proof-of-Concept projects to help establish Australia as a world leader in geothermal technology development.

The AU$7 million GDP funding agreement allows Greenearth Energy an initial drawdown of funds in support of the company’s hot sedimentary aquifer (HSA) geothermal energy project located in the Wensleydale – Gherang area northwest of Anglesea, Victoria.

Greenearth Energy is also negotiating contracts with the Victorian State Government further to being awarded AU$25 million(US$23.2m) in late 2009 under the Energy Technology Innovation Strategy (ETIS) program for large scale, pre-commercial, sustainable energy demonstration projects for its Geelong Geothermal Power Project.

The Victorian Government awarded the Geelong Geothermal Power Project AU$5 million (US$4.6m) for the Stage 1 Proof of Resource and, upon successful completion of Stage 1, a further AU$20 million (US$18.5,) for the Stage 2, 12MWe geothermal energy demonstration plant.

Mark Miller, managing director for Greenearth, said, “Greenearth Energy is very pleased to have completed this process in regards to our flagship project.”

“The Geelong Geothermal Power Project Stage 1 Proof of Concept is in a unique position, being supported by both State and Commonwealth funding totalling AU$12 million (US$11.1m)”.