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 and Ormat Technologies has heeded the call. The company has signed an agreement for the development of the Hu’u Dompu geothermal project in Indonesia. The agreement was signed in the presence of Penny Pritzker, Secretary of Commerce for the U.S. Department of Commerce.
Ormat will develop the project 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.”
Ormat says the Hu’u Dompu geothermal project will benefit from their phased approach to greenfield development, unique exploration tools developed in the U.S., flexible power plant technology, operational experience and knowledge base provided by the U.S. subsurface industry.
Dita Bronicki, chief executive officer of Ormat added, “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.”
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 CENT9.65/kWh.