Amoseas gathers US$100 million for Drajat III power plant

Amoseas Indonesia Inc. has prepared a US$100 million fund (equity funding) for the construction of Drajat III geothermal power plant (PLTP) with a capacity of 90 megawatts (MW) in West Java starting from 2004, Bisnis Indonesia newspaper reported on Monday

In a document, Amoseas said that it will build Darajat III power plant by using modern environmental friendly system, which in turn generate the environment friendly power.

“Darajat III will be built with equity funding but it will also consider other options which are beneficial,” said the document which was obtained by the Bisnis Indonesia on Sunday.

Since it will be an environmental friendly project, the carbon dioxide (CO2) emission levels would be the lowest. This will in turn generate certified emission reduction (CER) which can be sold to the developed countries.

Drajat III project has the opportunity to get CO2 emission credit of $1.5 million to $3 million per year with a CER assumption selling price of $5 per ton.

According to the data, the potential of CER sales from Drajat III make it prospective and profitable because the production cost is economical.

The plant will be operational by 2006with a capacity of 90 MW. Amoseas is an affiliate of Chevron Texaco. (*)