Aceh geothermal project to get loan, grant from Germany

The government expects to open tender for Seulawah Agam geothermal prospect in Aceh Besar regency, Aceh province in January 2011 at the latest.

Geothermal Director at the Ministry of Energy and Mineral Resources Sugiharto Harsoprayitno told Petromindo.com on Monday that the prospect had a potential to generate 160 MW of electricity.

The tender will part of the government?s 10,000 MW fast track program phase II, he said, adding that the government is targeting to develop the initial 55 MW until 2014 from the total potential of 160 MW.

He said the German government would extend grant worth 7 million euros and 56 million euros in soft loans. Total investment to develop the 55 MW of geothermal power plant until 2014 is estimated at US$165 million, he said.

Earlier this year, US energy giant Chevron Corp said that it was interested in acquiring a geothermal concession in Seulawah Agam. (bernard)