Australia: Geodynamics is awarded US$83 million government funding
Australian Geodynamics is awarded AU$90 million in funding to its Cooper Basin 25 MW Geothermal Demonstration Project from the Australian government.
In a release by the company, “Geodynamics announces the award by the Federal Government of $90
million (US$83 million) in funding under the Renewable Energy Demonstration Program (REDP). The funding has been awarded following a competitive process and forms part of an overall $235 million award to 4 renewable energy demonstration projects across a range of emerging renewable technologies.
The funding will be staged over the life of the project with the final grant payment to be received following the commissioning of a 25 MW geothermal power plant in the Cooper Basin, expected to occur in late 2013.
Geodynamics is delighted with the support shown by the Federal Government through the award of this funding. The Company believes funding of this nature is vital in ensuring that companies are able to bridge the gap between Proof of Concept and commercial demonstration of emerging technologies. The Company continues to enjoy the support of its cornerstone shareholders and this announcement demonstrates the commitment of all parties involved to bringing this valuable resource to market.
Geodynamics applied for funding under the REDP to establish a 25 MW geothermal power station in the Cooper Basin. The principal objective of this Commercial Demonstration Plant (CDP) is to demonstrate cost effective technology at a commercial scale to give lenders confidence to finance the commercial roll out of
subsequent units and transmission lines.
The Company wants to reach this point in the most cost effective way and is of the opinion that the 25 MW capacity of the CDP is the minimum output that would demonstrate commercial scale to the satisfaction of lenders. This opinion has been confirmed with a variety of institutional lenders. The 25 MW capacity is also
appropriately matched to the range of potential local users of the power from the CDP that are being investigated by the Company.
Source: Company announcement