Reykjavik, Pertamina to develop geothermal project in Bengkulu or North Sulawesi

Iceland geothermal firm Reykjavik Energy Invest will build a geothermal power plant either in Bengkulu or in North Sulawesi, in cooperation with PT Pertamina Geothermal Energi (PGE), Bisnis Indonesia reported on Thursday.

The Iceland?s company and PGE are currently exploring geothermal resources in Kotamobagu, South Sulawesi and in Hulu Lais in Bengkulu.

PGE?s director for operation, Surya Dharma said in Jakarta on Wednesday that the Kotamobagu geothermal field was estimated to have resources capable of generating electricity of 200 megawatt (MW), while the Hulu Lais might have the capacity to produce 400 MW.

He said that PGE and Reykjavik would choose one of the two as the location for the geothermal power plant, but Hulu Lais might be chosen as it has larger geothermal potentials.

PGE and the Iceland?s company signed a memorandum of understanding for the construction of the geothermal power plant in October, 2007.

Pertamina CEO Ari Soemarno said on October 24, 2007 that both companies would evaluate Pertamina?s geothermal potential of 9,000 MW and would then decide the joint venture area.

Reykjavik CEO Gudmundur Thoroddsson said that initially the company is looking to develop 500-MW of geothermal power plant in Indonesia. (*)