Greenearth Energy negotiating US$21m funding from Victoria

Greenearth Energy negotiating US$21m funding from Victoria Geelong's Cunningham Pier (source: flickr/ Gerard's World, creative commons)
Alexander Richter 20 May 2010

Australian Greenearth Energy is currently negotiating funding of AU$25million (US$21million) from the Victorian government, and will soon be able to draw anAustralian government grant.

Reported from Australia, “Greenearth Energy (ASX: GER) will soon be able to draw down inital funds from the $7 million Australian Government grant it was awarded on December 14, 2009 for its Victorian geothermal energy project.

Greenearth received the draft funding agreement from the Australian Centre for Renewable Energy within the Department of Resources, Energy and Tourism on May 18 for its Geothermal Drilling Program grant for the company’s Geelong Geothermal Hot Sedimentary Aquifer power project.

It has until June 17 to execute the agreement allowing an initial drawdown of funds.

Greenearth Energy is also in advanced negotiations with the Victorian State Government to receive $25 million from the Victorian Government, under the Energy Technology Innovation Strategy for large scale, pre-commercial, sustainable energy demonstration projects.

Mark Miller, managing director said, “we are delighted to finally see a draft funding agreement from ACRE and we can now conclude our contractual negotiations with the Australian and Victorian Government.”

The Geelong Geothermal Power Project was awarded $5 million for the Stage 1 Proof of Concept and, upon successful completion of Stage 1, a further $20 million for the Stage 2, 12MWe geothermal demonstration energy plant.

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

Since the grants were announced in December 2009 the company has been involved in detailed community and stakeholder consultation program as well as operational planning for the commencement of the Stage 1 Proof of Concept.”

Source: company release via Proactive Investors