GDY Executes $90 million REDP Deed
July 15, 2010
Geodynamics executes $90 million funding deed with the Federal Government Geodynamics Limited is pleased to announce the execution of a $90 million funding deed with the Federal Government under the Renewable Energy Demonstration Program (REDP). The grant signed with Geodynamics today represents the largest amount awarded to any project under the REDP program. The funding was initially awarded to Geodynamics by the Federal Government in November 2009 and was announced at that time. The execution of the funding deed follows a period of negotiation with the Federal Government to finalise its detailed terms. 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. Geodynamics is delighted to have executed the funding deed and believes that this government funding is an important step in bridging the gap between proof of concept and commercial demonstration of emerging technologies.
The Company continues to enjoy the support of its cornerstone shareholders and execution of this funding deed underscores the commitment of all parties involved with bringing the valuable Cooper Basin resource to market. For further information please check our website (www.geodynamics.com.au) or contact Dr Jack Hamilton or Mr Paul Frederiks on + 61 7 3721 7500. Dr Jack Hamilton Managing Director.
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. Geodynamics is delighted to have executed the funding deed and believes that this government funding is an important step in bridging the gap between proof of concept and commercial demonstration of emerging technologies.
The Company continues to enjoy the support of its cornerstone shareholders and execution of this funding deed underscores the commitment of all parties involved with bringing the valuable Cooper Basin resource to market. For further information please check our website (www.geodynamics.com.au) or contact Dr Jack Hamilton or Mr Paul Frederiks on + 61 7 3721 7500. Dr Jack Hamilton Managing Director.
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