Geodynamics Prepares For Landmark Year (January 15, 2008)

Geodynamics Limited has outlined several milestones for the coming year that it believes will ultimately result in Australia having a very significant and cost competitive clean energy resource comparable to its gas resources in Western Australia.

The first megawatts (MW) of geothermal power produced from the Cooper Basin and the final design of a 50 MW power plant for commercial operation are just two of the landmark events planned for Australia’s most advanced geothermal energy company.

(for an introduction to the company, the rest of this announcement is worth a read)

Geodynamics listed on the ASX in September 2002, is categorised in the GICS Industry Group Utilities, and has a current market capitalisation of around A$319m.

A look at their website is well worthwhile for a wealth of detailed information about the company, for example the top 20 shareholders list that includes a 9.85% stake by Origin Energy [ASX:ORG (ASX fact sheet) or (Yahoo Finance)] and 6.16% by Woodside [ASX:WPL (ASX fact sheet) or (Yahoo Finance)].

Geodynamics aims to become the leading renewable energy company in Australia, currently taking a focused path with the hot fractured rocks (HFR) geothermal electricity generation technology.  Their plans involve design finalisation for a 50 MW power plant (50,000 households base-load) during 2008, with commercial operation planned for 2012. The plant will produce zero emissions with zero water requirements. Production output will then be expanded to 500 MW by 2016, based on ten 50 MW power plant modules to be constructed progressively from 2010.

ClimateInvesting will definitely be watching for progress and will conduct further research into the technology and its prospects in due course.

Perth-based Carnegie Corporation (ASX:CNM) is focused on developing and commercialising clean energy technologies, with current projects in “CETO” wave energy technology and “Cleaner Coal Power”, a low-emission, coal-fired power generation technology. They further aim to become a diversified clean energy technology company and in their 2007 AGM presentation, bullishly ask: “who will become the Googles and Microsofts of the sector?”

Performance-wise, CNM’s share price has more than doubled in only the last month to reach its close today at AU$0.47. Current speculation appears linked to potential commercial deployments 12-18 months away as CNM states in their recent ASX response on price movements since The West Australian newspaper’s article “Carnegie surges on eve of water deal”.

The clean coal technology commercialisation appears further away, given mention of “field trials” in 2010 in Carnegie Corporation’s AGM Presentation, dated Nov 27th, 2007.

The CETO wave energy technology itself, invented by Carnegie Chairman Alan Burns, has been under development for nearly 10 years. CETO was then funded by a 2005 IP-for-equity swap (currently 4% or ~AU$2m) with UK listed Renewable Energy Holdings (LSE:REH). In August 2007, Carnegie announced an agreement with REH that allows Carnegie to “take up to 90%” of Southern Hemisphere projects in return for partly funding development up to AU$10m. With project announcements possibly imminent, the cause for recent speculation and price appreciation becomes clear.

Taking a global view, possible competition in wave energy production might come from Finavera Renewables (CDNX:FVR.V), mentioned on AltEnergyStocks.com as one of Tom Konrad’s “top ten speculations for 2008″.

Further research into the companies and technology is necessary and will be posted here as we grow the site.

Disclosure: This writer owns CNM shares.