In a new development which sent the company shares soaring, the Federal Government confirmed that Geodynamics would be awarded funds worth $90 Million. The funds, which have been awarded under the Renewable Energy Demonstration Program, will be given to three other renewable energy projects as well, bringing the total value of funds to be distributed to a whopping $235 Million.

According to Resources Minister Martin Ferguson, "The funding - combined with money from the successful applicants to the program - will deliver about $810 million in renewable energy investment in Australia".

The funds will be distributed evenly over the life of Geodynamics' geothermal energy project in Cooper Basin South Australia; the final grant is expected in 2013 after the commissioning of a 25 MW geothermal plant. Post the announcement, Geodynamics shares shot up by 10.24% or 8.5 cents and recorded a new value of 91.5 cents.

In addition to Geodynamics, three other companies have been awarded funds. These are - Petratherm, Victorian Wave Partners and the Hydro-Electric Corporation. ''These projects will diversify Australia's energy supply and help deliver the government's expanded Renewable Energy Target of 20% by 2020'', Ferguson said.