The move will also secure Origin the rights to 50% of the power generated by Geodynamics from its geothermal projects, including Renewable Energy Certificates (REC's) and environmental credits at a discount, under a power purchase agreement (PPA).

Origin will also be able to appoint a non-executive director to the company's board and has a right of participation in future share issues pro rata to its then percentage shareholding in Geodynamics.

In a statement Geodynamics' said it has long sought the expertise of major Australian energy companies in the development of the hot dry rock geothermal resource in the Cooper Basin and Origin Energy joins Metasource (a wholly owned subsidiary of Woodside Petroleum) in meeting these requirements.

GDY closed yesterday at 57 cents. Today it opened at 59c and shot up to 67c on the news before settling down to be trading at 62c at press time.