Ormat takes 90% in 60-MW Indonesian geothermal scheme

Oct 8, 2013 - US geothermal power firm Ormat Technologies Inc (NYSE:ORA) said today it would take a 90% stake in and develop an up to 60-MW greenfield geothermal project on Indonesia’s Sumbawa Island.

The company will leave 10% in the project company Pacific Geo Energy (PAGE) to the initial developers PT Trimatra Energy and PT Bima Transindo Persada. Financial details on the deal and the project were not provided.

PAGE holds a geothermal licence which gives it the right to sign a power purchase agreement for the Hu’u Dompu project. The geothermal plant will be located in the West Nusa Tenggara province and will be built in three phases in six years for a total capacity of up to 60 MW.

Ormat explained that it signed the agreement to develop the project under the US Asia Pacific Comprehensive Energy Partnership (USACEP). The programme aims to promote the development of southeast Asia renewables projects by US companies and also targets improved cross-border connectivity, greater use of natural gas and increased focus on energy efficiency in that part of Asia.

According to Ormat’s estimates, the Hu’u Dompu geothermal project will support US jobs in renewables as it will source export content from states like California, Nevada, Minnesota, Wisconsin, Massachusetts, Iowa and South Carolina.

Once up and running, the Hu’u Dompu geothermal plants will save 500,000 tonnes of carbon dioxide emissions per year of operation, the developer calculates.

Indonesia, situated on the Pacific "Ring of Fire", boasts geothermal power potential estimated at some 27,000 MW, among the largest in the world.

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