GEOTHERMAL COMPANY TO TAP $90M IN FUNDS
28 October 2010,
GEODYNAMICS Limited (GDY) will now be able to draw funds from a $90 million Renewable Energy Demonstration Program (REDP) grant, after the Federal Government announced the deed as unconditional today.
Managing director Jack Hamilton (pictured) says the geothermal energy company will draw on the funds this calendar year and is optimistic about growing demand from the public for a carbon policy setting.
“There is no doubt that going unconditional provides a lift to the business in demonstrating the continued support of the government for our program,” he says
“The grant is a valuable source of non-dilutionary capital for the Company and will support the next part of our work program which is designed to achieve certain objectives that move us towards commercial power production.
“Australia has set stringent emissions reduction targets which we need to achieve by 2020. Focus in this area will become vital as we move towards reaching our 2020 renewable energy target.”
He says the geothermal industry is a crucial part of the Federal Government’s renewable energy strategy, with enormous potential to deliver a low emissions future.
“We believe that geothermal power will ultimately be the lowest cost renewable energy technology and that governments will implement a suite of policy measures to ensure this potential is realised.
“The Geodynamics team is back in the field, making good progress on our path to commercial demonstration. We have a defined work program, with clear objectives and the drive and capability to bring this valuable resource to market.
“The Federal Government grant will provide important assistance with funding our planned 25 MW commercial demonstration plant in the Cooper Basin.”
GDY shares rose 2.7 per cent today to $0.57.