Ormat to develop 60MW geothermal plant
Tuesday, October 8 2013 - 03:45 PM WIB
US geothermal company Ormat Technologies Inc. announced Tuesday that it has signed an agreement for the development of the Hu?u Dompu project in Sumbawa island, West Nusa Tenggara.
The project may be developed for up to 60 megawatts (MW) in three phases over the next six years, the company said in a release. Ormat will develop the project through the project company Pacific Geo Energy (PAGE).
Under the terms of the agreement with the initial developers, Ormat will hold a 90 percent stake in the project, while the remaining 10 percent will be held by the current owners of PAGE, PT Trimatra Energy and PT Bima Transindo Persada. PAGE obtained the geothermal license for the project, which entitles it to a power purchase agreement price of US?9.65/kWh.
Upon completion, the Hu?u Dompu geothermal project will save 500,000 tons of carbon dioxide emissions each year of operation, the company said.
A media report quoted Ormat executive as saying that the project is estimated to cost around $200 million.
The agreement was signed on the sidelines of the Asia-Pacific Economic Cooperation summit in Bali in the presence of US Secretary of Commerce Penny Pritzker. President Obama?s U.S. Asia Pacific Comprehensive Energy Partnership (USACEP) is encouraging U.S. companies to develop renewable energy in South East Asian countries, including Indonesia.