KS Orka acquires controlling stake in 240 MW Sorik Marapi project in Indonesia
KS Orka, an Icelandic and Chinese joint venture has acquired a 100% stake in OTP Geothermal from Origin Energy and Tata Power, taking over the 95% stake in the 240 MW Sorik Marapi geothermal project in North Sumatra, Indonesia.
In a statement today, KS Orka Renewables Pte Ltd of Singapore announces, that it has signed an agreement to acquire 100% of OTP Geothermal Pte Ltd (OTP) from Origin Energy Geothermal Singapore Pte Ltd (Origin Energy) and Tata Power International Pte. Ltd (Tata Power).
OTP, a joint venture between Origin Energy and Tata Power, holds a 95 percent interest in Indonesia’s PT Sorik Marapi Geothermal Power (SMGP). SMGP is currently developing the 240 MW Sorik Marapi Geothermal Power Project in North Sumatra Indonesia
Following the government of Indonesia’s new geothermal regulation (UU No.21 2014) aimed at supporting utilisation of geothermal for its strategic national energy plan, the RI Ministry of Energy & Mineral Resources (ESDM) issued a permit for PT Sorik Marapi Geothermal last April 2015, to develop the geothermal project. The project, which is a priority project to provide a continued supply of power in North Sumatra province, if proceeding as planned would help the country address the province’s power crises by 2019 according to the national state power company,PT Perusahaan Listrik Negara in past reports. (Ref-http://www.antaranews.com/berita/505935/pln-krisis-listrik-sumut-baru-berakhir-2019
Eirikur Bragason, KS ORKA’s CEO, said, “KS Orka aims to be the leading global developer and operator of geothermal projects. KS Orka has prioritised investments in Indonesia and is targeting development of 500MW of power generation capacity over the next five years, which would involve an investment of at least US$ 2 billion. The Sorik Marapi Project is an important first step towards achieving this goal.”
KS Orka, is a joint venture between Hugar Orka ehf, an Icelandic company and Zhejiang Kaishan Compressor Co., Ltd (Kaishan), which is listed on the Shenzhen stock exchange.. KS Orka combines Hugar Orka’s geothermal and project development expertise with Kaishan’s power plant technology and manufacturing expertise to form Asia’s only vertically integrated geothermal and waste energy company. KS Orka brings to the project some of the most experienced geothermal experts and power project developers in the world.
Source: KS Orka release