Origin made the commitment after Geodynamics completed the Habanero-3 well and an open circuit circulation test between Habanero-1 and 3, Geodynamics said.

The extra funding brings Origin's total commitment to about $150 million, the company added.

According to the Geodynamics, the achievement represents an important step on the road to developing the company's significant renewable energy source.

Geodynamics managing director Gerry Grove-White said the achievement confirms the company's faith in the techniques being developed to exploit its world-class geothermal resources.

"Geodynamics is in pole position in the race to develop emissions-free renewable energy in Australia," he said.

"The Government's commitment to an emission trading scheme and a renewable energy target underscores the importance of developing this important renewable energy source."

Origin Energy managing director Grant King said with the completion of the test, the JV could move towards actually harnessing the energy contained in Australia's hot-rock resources.

"Geothermal energy will play an ever more important role in securing the growing global need for clean energy technologies," he said.

Geodynamics is developing it project in three phases. Stage one of the company's business plan, which is to establish "proof of concept", will be completed once a six-week closed loop test on the Habanero-3 well has been completed.

The second phase includes the design and construction of a 50MW pilot power plant and the drilling of a further nine wells by 2011.

Stage three involves the replication of the 50MW pilot plant and will demonstrate the commercial viability of geothermal resources in the Cooper Basin.

Origin Energy holds a 30% interest in the project via a farm-in.