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$1.6 million in grants for geothermal projects
The US Trade and Development Agency (USTDA) has committed US$1
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he US Trade and Development Agency (USTDA) has committed US$1.6 million in grants for feasibility studies for two private geothermal projects in West Java and Halmahera.
The commitment was signed by USTDA’s director Leocadia I. Zak on Tuesday, the US Embassy said in a press statement.
“USTDA is pleased to announce that over $1.6 million is being committed to help Indonesia draw upon its extensive geothermal reserves. We hope that the US-Indonesia Geothermal Energy Initiative will be the start of a strong commercial relationship between the US and Indonesia.” Zak said.
Of the total grant commitment, as much as $732,722 is granted to PT Star Energy Geothermal Halmahera which will use the funds for a feasibility study for the 370 megawatt s(MW) Jailolo Geothermal Power Plant in Halmahera. Los Angeles-based engineering and management company AECOM USA has been selected for the feasibility study.
The project in total could cost over $110 million.
A second grant amounting to $934,308 was awarded to PT Indonesia Power to fund the feasibility study for the 300 MW Tangkuban Perahu geothermal power project in West Java. The study will be done by Indonesia Power and Utah-based Raser Technologies. Raser Technologies will do the feasibility study and share costs. Indonesia is believed to hold 28,100 MW of geothermal potential, but only about 1,200 MW of this has been tapped.
The government expects to utilize more geothermal energy in the second phase of the 10,000 MW electricity crash program, to be implemented between 2010 and 2014. The project is expected to generate up to 10,153 MW in total and as much as 39 percent is expected to be generated from geothermal energy.
Murtaqi Syamsuddin, a business and risk management director at state electricity firm PT Perusahaan Listrik Negara (PLN), said the development of geothermal power plants included high risks especially during the exploration stage. He added that PLN now was discussing the possibility to insure the exploration activities of the geothermal projects.
“The study will help provide certainty for the geothermal developers,” Murtaqi said.
