Raser Technologies as contractor on Indonesian project

Raser Technologies' Thermo no. 1 plant, Utah
Alexander Richter 29 Mar 2010

Raser Technologies receives grant funding by the U.S. Trade and Development Agency (USTDA) for a feasibility study at the Tangkuban Perahu geothermal concession in Indonesia.

In a release, “Raser Technologies, Inc. announces that the United States Trade and Development Agency (USTDA) awarded Indonesia Power (IP) grant funding in the amount of $934,308 for a feasibility study of the Tangkuban Perahu geothermal concession. IP has selected Raser as the sole-source contractor to perform the study, which will assess the technical, economic, and financial feasibility of the geothermal resource, including the potential impact and opportunity the project will have for Raser and other U.S. suppliers in the Indonesian market. Raser will receive payments from the grant funds directly from USTDA as study milestones are completed. The grant will cover approximately 70% of the study, with Raser, as sole-source contractor, contributing a cost share of approximately $400,000.

Raser and IP entered into a consortium agreement in 2007 to jointly pursue geothermal development in Indonesia. In 2008, IP and Raser were awarded a 100,000 acre concession surrounding the Tangkuban Perahu volcano, approximately 15 miles north of Bandung, the capital of the West Java Province. Raser and IP have agreed to a 50/50 development arrangement for potential future projects within the 100,000 acre concession. IP is Indonesia’s largest electricity generation company, with nearly 9,000 MW of total capacity, including 375 MW of geothermal power generation, which makes it the second largest geothermal generation company in Indonesia.

Djoko Hastowo Budihardjo, Chief Executive Officer of Indonesia Power, said, “We are grateful for the support of the U.S. Government via the USTDA and believe this grant money will help us with our commitment to unlock more of the great geothermal resources in Indonesia. We also look forward to working with Raser Technologies.”

Source: Company release via MarketWatch