Geo Dipa Energi and Ormat partner on feasibility study for Dieng geothermal expansion
PT Geo Dipa Energi and Ormat Intl. have agreed on a partnership to study the feasibility of a 110 MW expansion of the Dieng geothermal project in Indonesia. Further plans on joint development and investment will be determined after the study is concluded.
Announced earlier this week, state-owned PT Geo Dipa Energi and ORMAT Intl.inc. have signed a Memorandum of Understanding on the collaboration for a feasibility study for further development of the Dieng geothermal project. It is planned to expand the current plant with Units V & VI and 2×55 MW under a 400 MW PPA with PLN.
The goal of the collaboration is to study on the feasibility of a joint investment under that prerogative that cost estimates are realistic and benefit all parties, Indonesia and Ormat Intl. Due to the long-term geothermal development mission for the archipelago.
After completing the feasibility study, the business aspects will be discussed later, considering the Sikidang reservoir has the same commercial potential and investment perception. This has become important for Indonesia and Ormat Intl.
The partners have not determined if the partnership will be under a farm-in or BOT, or similar structure. The outcome of the feasibility study will determine that. This new collaboration is interesting for PT Geo Dipa Energi and Indonesia, as Ormat Intl. has indicated an interest in some manufacturing in Indonesia, so the statement by Geo Dipa.
Source: PT Geo Dipa Energi/ LinkedIn