Mumbai: The country’s biggest private electricity generator, Tata Power Co. Ltd, on Thursday said it had agreed to acquire a 10% stake in Geodynamics Ltd, an Australian firm seeking to tap geothermal energy. Tata Power will spend Rs165 crore to buy the stake, a company statement said.
Geodynamics is betting on a nascent technology that hopes to produce electricity from so-called super-hot granites lying deep inside the earth.
The Australian firm owns a licence for exploring 2,000 sq.km in the Cooper Basin, touted to contain the hottest granites on earth, and are estimated to provide a thermal resource equivalent of 50 billion barrels of oil.
Fresh avenues: Tata Power Co. managing director Prasad Menon. Bloomberg
The move is in line with Tata’s strategy to pick up stakes in start-ups and other firms testing newer forms of renewable energy.
“This strategic partnership not only strengthens our renewable portfolio but also creates opportunities to get a foothold in the growing renewable energy market in Australia,” Prasad Menon, managing director of Tata Power, said in the statement.
Among other Tata Group firms, Tata Chemicals Ltd has picked up a minority stake in Praj Industries Ltd, which is engaged in biofuel production, and Tata Motors Ltd has tied up with French firm Moteur Development International for developing technology to run cars on compressed air.
Tata Power will gain a seat on the board of Geodynamics, a company that is listed on the Australian stock exchange.