Utah, United States [RenewableEnergyWorld.com] Earlier this month, the United States Trade and Development Agency (USTDA) awarded Indonesia Power (IP) US $934,308 in grant funding for a feasibility study of the Tangkuban Perahu geothermal concession. The USTDA and IP signed the grant agreement during a ceremony in Indonesia, March 29, 2010 in advance of U.S. President Barack Obama’s visit to Indonesia.
IP has selected Raser Technologies 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.
The two companies have agreed to a 50/50 development arrangement for potential future projects within the 100,000 acre concession. The feasibility study is expected to begin in May 2010 and be completed in 2011.
IP is Indonesia’s largest electricity generation company, with nearly 9,000 megawatts (MW) of total capacity, including 375 MW of geothermal power generation, which makes it the second largest geothermal generation company in Indonesia.
“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,” said Djoko Hastowo Budihardjo, CEO of Indonesia Power.
Due to growth and rising fuel costs, Indonesia is experiencing an energy crisis and is actively pursuing a plan to grow geothermal power capacity. With over 24,000 MW of total estimated capacity, Indonesia is considered to have the world’s largest geothermal power generation potential outside of the United States.