News

Geodynamics executes US$79million grant from Australian government

Drilling crew of Geodynamics at work (source: Geodynamics)
Alexander Richter 16 Jul 2010

Geodynamics Limited announced the execution of a AU$90 million (US$79million) funding deed with the Federal Government under the Renewable Energy Demonstration Program (REDP).

“Geodynamics Limited announced the execution of a AU$90 million (US$79million) funding deed with the Federal Government under the Renewable Energy Demonstration Program (REDP).”, as announced by the company this week.

“The grant represents the largest amount awarded to any project under the REDP program.

The funding was initially awarded to Geodynamics in November 2009 and follows a period of negotiation with the Federal Government to finalise its detailed terms.

Geodynamics Managing Director, Dr Jack Hamilton said the $90 million REDP grant would help support the company’s work program and the next important steps to a commercial demonstration.

“Our Cooper Basin tenements have the potential to play a key part in providing base-load, zero emission, renewable energy to support Australia’s future energy needs,” he said.

“Government funding support for emerging renewable technology is vital if Australia is to reduce its dependence on fossil fuels.”

Geodynamics applied for funding under the REDP to establish a 25 MW Commercial Demonstration Plant (CDP) in the Cooper Basin.

The principal objective of the CDP is to demonstrate cost effective technology at a commercial scale to support the development of subsequent units and transmission lines.

The REDP funding will be staged over the life of the CDP project. First payments are expected to be received in relation to drilling Habanero 4, scheduled for late 2010.

The final payment will be received following the commissioning of the 25 MW CDP in the Cooper Basin, expected to occur in early 2015.

The funding deed sets out conditions precedent that relate to establishing and certifying processes for risk management and community consultation. These are expected to be satisfied prior to 30 September 2010 in accordance with the negotiated schedule.”

Source: Company announcement via e-mail