Friday 5/9/2008 Page: 81
INDIA'S largest private company Tata Group will pump at least $44.1 million into geothermal energy company GeoDynamics. Brisbane-based GeoDynamics yesterday announced a deal to issue 29.4 million shares, equivalent to 11.4 per cent of the company, to Tata Power for $1.50 per share. This compares to yesterday's closing price of $1.40, up 4c.Tata will also be eligible for 14.7 million options, exercisable at $2.25 per share by the end of February next year, subject to shareholder approval. GeoDynamics said Tata Power was India's largest private utility, with generation capacity of more than 2300 megawatts (MW) and a presence in thermal, hydro, solar and wind energy, as well as transmission and distribution.
It is also developing the $US4.2 billion 4000MW ultra mega power project" in the state of Gujarat. Tata Power is a subsidiary of the Tata Group, which had revenues or $US62.5 billion in 2007-08 and turned a $US5.4 billion profit. GeoDynamics managing director Gerry Grove-White was chief operating officer for Tata Power before taking on his current role.
He said yesterday the relationship with Tata would place the company in a strong financial position to make an investment decision, along with joint venture partner Origin Energy, to build a 50MW power station next year. The companies would also be looking to share technical knowledge and look at opportunities outside of Australia. Within the group they have many areas which could support our activities," Mr Grove-White said.
"They have a very large engineering consultancy business and they also have significant power engineering expertise themselves." GeoDynamics is currently drilling its third deep geothermal energy well near Innamincka in the Cooper Basin in far north South Australia. The company has conducted flow tests between its first two wells, in a step in proving the concept of engineered geothermal energy production.
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