The Wairakei geothermal power plant, Region of Waikato, New Zealand.Ormat Technologies Inc. announced that it has signed an agreement for the development of the Hu’u Dompu geothermal plant in Indonesia through the project company Pacific Geo Energy (PAGE). The Hu’u Dompu greenfield geothermal project is located in West Nusa Tenggara Province on Indonesia’s Sumbawa Island, and may be developed for up to 60 megawatts (MW) in three phases over the next six years.
“President Obama has made it very clear that the United States is deeply committed to deepening our commercial and economic ties in the Asia-Pacific. Part of increasing our engagement in the region will be achieved as U.S. and Asian businesses work together on projects that benefit both of our economies,” said U.S. Secretary of Commerce Penny Pritzker. A joint project like this represents a clear win-win for our bilateral commercial relationship with Indonesia, and demonstrates the opportunities that exist in the world’s fastest-growing region for U.S. companies to not only sell their goods and services but share their expertise and drive development in high-priority areas like clean energy.”
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 ¢9.65/kWh.
Dita Bronicki, chief executive officer of Ormat said, “As the first greenfield development for Ormat in Indonesia, we are pleased with the opportunity that this project presents. Together with our new local partners and the support from U.S. and international sources, we’re hopeful that this prospect will be a successful source of renewable sustainable and affordable energy to Sumbawa Island.”
Upon completion, the Hu’u Dompu geothermal project is expected to save 500,000 tons of carbon dioxide emissions each year of operation.
