The Strike Energy Ltd (ASX: STX) share price was pushing closer to an 8-month high of 34 cents during late afternoon trade.
This came after the company announced a positive update on the ASX earlier today.
At the close of trading, the energy producer's shares were swapping hands for 32.5 cents, up 3.17%.
Strike Energy secures $2 million funding award
Investors were driving up the Strike Energy share price after the company announced it had received backing for its geothermal power project.
In today's release, Strike Energy advised it had been awarded a $2 million grant from the Clean Energy Future Fund.
Backed by the Western Australian Government, the fund is designed to help implement innovative clean energy projects.
Strike Energy said it would use the awarded funds to prepare and execute the drilling stage of its planned geothermal power project.
Located in the mid-west of WA, Strike Energy seeks to produce electrical power from geothermal energy. Essentially, this will help the company achieve its net-zero 2030 target via its integrated downstream strategy.
Geothermal energy is considered the cheapest form of reliable electricity with zero carbon emissions.
The process involves digging wells deep into underground reservoirs to access the steam and hot water. This can then be used to drive turbines connected to electricity generators.
Management commentary
Strike managing director and CEO Stuart Nicholls commented:
The Mid-West Geothermal Power Project is an excellent opportunity for Strike to use its existing core capabilities to drive renewable energy into its vertically integrated strategy.
The complementary skills required for a successful geothermal project in the Mid-West are all currently within the company's existing competencies.
The Mid-West Geothermal Power Project is unique in that it may provide 24/7 dispatchable power which can drive lower carbon outcomes across Strike's existing portfolio of projects and potentially more broadly across the State.
About the Strike Energy share price
Over the past 12 months, the Strike Energy share price has fallen by around 8%.
However, the company's shares are up almost 60% this year to date, following the boom in commodity prices, particularly gas. This is largely due to the Russian invasion of Ukraine, which has led to heavy sanctions on the Kremlin from the West.
Strike Energy commands a market capitalisation of roughly $658.16 million, with approximately 2.03 billion shares on its books.
