New Delhi: India’s Tata Power Co plans to buy a 10% stake in Australian energy company Geodynamics Ltd as it seeks a presence in the country’s expanding renewable energy market, a statement said.
Tata Power, India’s largest private power utility, will spend $36.1 million to acquire the stake, the Tata Power statement said.
“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,” Tata Power Managing Director Prasad Menon said in the statement on the company’s website Friday.
Geodynamics is an industry leader in “enhanced geothermal systems” with geothermal exploration interests in three Australian states, Tata Power said.
The Australian company hoped to expand the alliance “into other areas of common interest,” Geodynamics managing director Gerald Grove-White added in the statement.
“There are great synergistic opportunities for both the groups,” he said.
Geothermal energy is the natural heat found inside the earth. In enhanced geothermal systems, heat is extracted from hot rocks by circulating water using an artificial reservoir.
The stake acquisition would be done by either Tata Power itself or through one or more of its subsidiaries in India and abroad, Tata Power said.
Tata Power is part of the sprawling tea-to-steel Tata Group.
After acquiring the stake, Tata Power will have a representative on Geodynamics’ Board, the statement said.