Oz Geothermal Production Heats Up

Australian energy company Origin Energy is entering a joint venture with Australian geothermal company Geodynamics, in a bid to expand geothermal production in the country.

Origin has entered into a binding Heads of Agreement, taking a 30 percent stake which covers technical and related support for upstream exploration activities, gas-fired power generation and geothermal power in New Zealand.

Origin hopes the venture will expand its global thermal portfolio by taking advantage of Geodynamics’ hot fractured rock exploration.

Origin managing director Grant King believes that geothermal energy will play an increasing role in securing future needs for clean energy.

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

Origin will commit A$96m to the venture in addition to its 30 percent share.

The agreement is subject to Geodynamics shareholder approval and regulatory approvals.

By Ozge Ibrahim