President inaugurates geothermal projects

President Susilo Bambang Yudhoyono inaugurated four geothermal projects owned by PT Pertamina Geothermal Energy (PGE), a unit of state-owned oil and gas firm PT Pertamina, on Tuesday in a ceremony held in Nusa Dua, Bali. He also witnessed the handing over of four geothermal concessions to four regions with combined potential capacity of 640 MW.

The four geothermal projects worth US$326 million include PLPT Darajat unit 3 (110 MW) in West Java, PLTP Kamojang unit 4 (60 MW) in West Java, PLTP Lahendong unit 2 (20 MW) in Minahasa, North Sulawesi, and PLTP Sibayak unit 1 and 2 (2x5 MW) in Karo regency, North Sumatra.

Meanwhile, Seulawah Agam concession (with a capacity of 160 MW) in Aceh was handed over to the Aceh gubernatorial administration; the Gunung Tampomas concession (50MW) and the Cisolok-Cisukarame concession (45MW) to West Java; Telaga Ngebel, Ponorogo (120MW), and Madiun concessions to East Java; and Gunung Ungaran (50MW) and Kendal to Central Java.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said that the regions would be given authority to hold their own tender to develop the geothermal concessions.

The Tuesday ceremony also saw the signing of a number of other agreements. This include an emission reduction purchase agreement for the PLTP Lehendong unit 2 geothermal power project between state-owned power company PLN and IBRD of the Netherlands worth about $5.5 million. Similar agreement for the PLTP Lehendong unit 3 between PLN and Japan Carbon Finance Ltd JBIC worth about $3.5 million.

The research and development unit of the Ministry of Energy and Mineral Resources also signed a $125 million cooperation agreement with PT Mitra Energi Buana and IEV Energi Sdn Bhd. (Godang)