The NSW Government has given a $10 million grant for the development of a commercial geothermal project in the Hunter Valley to Geodynamics Limited.
Geodynamics is currently developing a power generation plant using energy from underground hot rocks in the Cooper Basin in South Australia. In a joint venture with Origin Energy, the South Australian project is expected to be powering the outback town of Innamincka by the end of March next year.
The company is now planning to apply the knowledge and expertise that it has gained in the Cooper Basin over the past five years to the development of the Hunter Valley project.
Geodynamics believes that its Hunter Valley tenements at Bulga and Muswellbrook hold significant geothermal resources. The first stage of thie project will be the drilling of a 2km exploration well in early 2009 to confirm temperature gradients, followed by the commissioning of a small geothermal power plant in the Hunter Valley in 2012.