Origin Energy, Geodynamics form geothermal venture

Sydney, Australia power retailer Origin Energy said today it would form a geothermal joint venture with Geodynamics, based in Milton, Australia.

Origin plans to take a 30 percent stake in the unnamed venture, putting $88.5 million into the operation, along with a further $8.9 million if certain milestones are achieved.

"We believe that geothermal energy will play an increasing role in securing the world's future needs for clean energy," said Grant King, managing director of Origin.

"Geodynamics' tenements are amongst the most prospective geothermal areas in Australia and include some of the hottest rocks in the world."

The South Australian tenements and drilling rig of Geodynamics will be put into the venture, with Geodynamics as the operator with 70 percent ownership."The funds provided by Origin will be used to drill the next three to four wells, which will essentially be designed to upgrade the known resource to proven reserves and located over the project area and up to 9 km from the existing wells," said Gerry Grove-White, managing director of Geodynamics.

Geodynamics hopes to generate 500 megawatts of geothermal power by 2016.

Origin was a cornerstone investor in Geodynamics and still holds a 10 percent stake in the company.

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