News

SAE to start drilling for Batturaden geothermal project this year

Management team of PT SAE at IIGCE 2017 in Jakarta/ Indonesia (source: SAE)
Alexander Richter 7 Aug 2017

PT Sejahtera Alam Energy (SAE) is ready to drill its first exploration well for its 220 MW Baturraden geothermal project by the end of 2017.

In discussions at the recently held Indonesia International Geothermal Convention & Exhibition (IIGCE) in Jakarta, Indonesia, PT Sejahtera Alam Energy (SAE) reported that the company is ready to drill its first exploration well for the Geothermal Working Area (WKP in its Indonesian abbreviation) Baturraden by the end of 2017.

Daniel Moelk, President Director of SAE, said that they are currently preparing the road infrastructure to begin drilling the first exploration wells of the Baturraden project. “The exploration well will be drilled to a depth of 3,500 meters, very deep,” Daniel Moelk told reporters at the venue of the Indonesia International Geothermal Convention & Exhibition (IIGCE) 2017, at Jakarta Convention Center, last week.

SAE is targeting to drill the first exploration well by the end of this year. For drilling one well, they estimated that it would take approximately two months. “The drilling rig has the power of 2,000 Horse Power (HP), commonly used in the oil and gas industry. We are using the rig from Apexindo, all drilling services are contracted to Halliburton,” D. Moelk said.

He added that by drilling the exploration wells, they expected to find a potential source of hot steam to be used to drive turbines for power plants. “From the latest study, I am confident that we can generate up to 220 MW,” he explained.

SAE_IndonesianVP_IIGCE2017

Furthermore, it is expected that in the second quarter of 2018, SAE will be able to deliver the first preliminary feasibility study to the government, unveiling the real potential of WKP Baturraden.

“After that, we will go into the exploitation phase and we are targeting for our geothermal power plant (PLTP in its Indonesian abbreviation) to start operating by the end of 2022,” he said. Electricity from PLTP Baturraden is planned to be incorporated within the Java-Bali grid through Bumiayu transmission.

In addition to providing electricity, SAE will also build the 17 kilometer transmission network to connect with the Java-Bali grid as intended. As for the electricity pricing under the Power Purchase Agreement (PPA) between SAE and PLN, Daniel Moelk mentioned, ” $o.947 cents per kilowatt hour (kWh)”.

WKP Baturraden is located across five administrative districts surrounding Mount Slamet in Central Java Province, and covering an area of 24,800 hectares. However, SAE – jointly owned by German company STEAG GmbH (75%) and PT Trinergy (25%) – would only make use of approximately 50 hectares for its operations.

Based on SAE’s calculations, it would cost somewhere between $900 million to $1 billion to develop the entire 220 MW geothermal power plant project in Baturraden. “Up to date, we have spent over $30 million,” Daniel Moelk revealed.

Moreover, Herman Afif Kusumo, President Commissioner of SAE, explained that the $30 million fund already spent by SAE is a token of evidence showing SAE’s determination in developing geothermal potential in Indonesia.

“We are spent over $30 million, proving our determination to do business in the geothermal sector,” Herman said, affirming the commitment of SAE. “We are very confident that we can develop geothermal potential in Indonesia,” he concluded.

Other challenges encountered are the regulatory and bureaucratic issues, as well the protest from local community and NGOs who deem geothermal projects to be harmful to the environment. “I think it’s just a matter of misperception. So, we will give  our best effort to communicate better with the local community in informing the process of developing a geothermal project by involving local figures and universities. We need to reiterate that geothermal is the most environmental friendly energy, ” Bregas Rochadi, Director of SAE, also spoke.

Currently PT SAE has new a management structure; with Herman Afif Kusumo as President Commissioner, Daniel Moelk as President Director, and Bregas H Rochadi as Director. “We believe PT SAE is getting more solid,” Herman declared.

Source: Company release by email