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Negotiation period for drilling grant prolonged for Geelong

Geelong, Victoria/ Australia (source: flickr/ Sandy Austin, creative commons)
Alexander Richter 16 Aug 2010

Australian Greenearth Energy announces extension to negotiation period for Geothermal Drilling Program funding agreement for its Geelong Geothermal Power Project until August 31, 2010.

In a release by the company, “Greenearth Energy (ASX: GER) announces that it has been advised by the Australian Centre for Renewable Energy (ACRE) that the negotiation period for the Geothermal Drilling Program (GDP) funding agreement for the Geelong Geothermal Power Project will be extended by a further 15 days until 31 August, 2010.

On 20 May, 2010 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 original execution date was set by ACRE for 17 June, 2010. The company was subsequently advised by ACRE that it had until 16 August, 2010 to execute the AU$7m GDP funding 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.

Mark Miller, managing director, said Greenearth is also negotiating contracts with the Victorian State Government further to being awarded AU$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 AU$5 million for the Stage 1 Proof of Resource and, upon successful completion of Stage 1, a further AU$20 million for the Stage 2, 12MWe geothermal energy demonstration plant.

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