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Greenearth Energy sees extension of drilling grant negotiations

Geelong's Cunningham Pier - not directly related to story (source: flickr/ Gerard's World, creative commons)
Alexander Richter 16 Jul 2010

The negotiation period for the US$6.2million federal geothermal drilling fund awarded to Australian Greenearth Energy is being extended for further 30 days, while the company is still negotiating with the state of Victoria for an awarded grant of US$22million.

Australian Centre for Renewable Energy (ACRE) informs Greenearth Energy (ASX: GER), “that the negotiation period for the AU$7 million (US$6.2million) Geothermal Drilling Program (GDP) funding agreement would be extended a further 30 days until 16 August, 2010, due to delays in the negotiation process.” so news from Australia.

According to this, “On 20 May the company received the draft GDP funding agreement from the newly formed ACRE within the Department of Resources, Energy and Tourism (DRET) for the company’s flagship Victorian geothermal energy project, the Geelong Geothermal Power Project.

The company was subsequently advised by ACRE that it has until 17 July, 2010 to execute the agreement allowing an initial drawdown of funds in support of the company’s flagship 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 $25 million 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 $5 million for the Stage 1 Proof of Resource and, upon successful completion of Stage 1, a further $20 million for the Stage 2, 12MWe geothermal energy demonstration plant.

Mark Miller, managing director, said Greenearth Energy’s Geelong Geothermal Power Project Stage 1 Proof of Concept is in a unique position, being supported by both State and Commonwealth funding totalling $12 million.”

Source: Company release via Proactive Investors