Supreme Energy to spend US$200m on geothermal projects in Indonesia
Indonesian Supreme Energy has prepared funding of US$200m to explore three geothermal mining working areas in Liki Pinawangan, Muaralabo, West Sumatra and Mt. Rajabasa, Lampung.
In news from Indonesia it is reported that, “Supreme Energy has prepared US$ 200 million to explore three geothermal mining working areas (WKP).
“I hope the contract can be signed in April or May,” said Supreme Energy CEO, Supramu Santosa, yesterday.
The two working areas are located in Liki Pinawangan, Muaralabo, West Sumatra and Mt. Rajabasa, Lampung. To work on the two areas, Supreme Energy is working with Sumitomo and GDF-Suez. The negotiation price was set at 9.4 cents for the West Sumatra project and 9.5 cents for Lampung project.
For each well, Supreme requires US$ 6-7 million, with investment value per location valued at US$ 650 million. The exploration will take place over 2 years.
Supreme has targeted that the Liki Pinawangan and Mt. Rajabasa projects, which have a 440-megawatt (MW) capacity, will operate by 2015.
The operation of the geothermal well is part of the state-run electricity company’s plan to switch energy reliance to renewable resources. Besides the two WKPs, Supreme Energy has one WKP in Rantau Dedap, South Sumatra. Negotiation for this WKP is still underway.
The government says the geothermal energy agreement will be signed this coming April. This is a follow-up on the agreement for six geothermal projects between PLN and two developers last week.
“The amount is more significant. The capacity is bigger than yesterday’s agreement,” said Energy and Natural Resources Ministry’s new and renewable energy director general, Luluk Sumiarso.
The signing of the six projects on March 11 is said to prove that barriers in the energy sector have been tackled. Supreme Energy is one of the independent power producers (IPP) that will sign the agreement.
Last week, PLN signed an agreement to build six geothermal power plants with Pertamina Geothermal Energy (PGE) and one IPP, namely PT Westindo Utama Karya.”
Source: Tempo Interactive