USTDA Promotes Geothermal Power Development in Indonesia

(USTDA) Project Supports the New Asia Pacific Energy Partnership Announced at East Asia Summit

JAKARTA, INDONESIA – Today, the U.S. Trade and Development Agency (USTDA) awarded a $546,766 grant to PT Teknosatria Energi Geothermal (TEG) to partially fund a feasibility study for a 30 megawatt (MW) geothermal power project at the Cibuni site in West Java, Indonesia. TEG is a private Indonesian company established to develop the geothermal project and is part of the PT Satria Gemareksa group. The grant was signed at the U.S. Embassy in Jakarta by Ambassador Scot Marciel on behalf of USTDA, and by PT Satria Gemareksa Chairman Mr. Wisnu Suhardono on behalf of TEG.

"This grant demonstrates the commitment of the U.S. Government and Indonesian private sector to work together to expand Indonesia's geothermal power development, an important energy sector goal of the Government of Indonesia," stated USTDA Regional Director Henry Steingass. "We are pleased to support this goal and to connect PT Teknosatria Energi Geothermal with U.S. expertise and solutions." TEG has selected a U.S. firm, Layman Energy Associates, and a U.S. business consortium of specialized geothermal service companies and experts to conduct the feasibility study.

The USTDA grant will allow TEG to refine its Cibuni geothermal resource model using specialized U.S. modeling tools to finalize production well plans, assess power plant siting conditions and technology options, and prepare preliminary engineering designs for the surface gathering system and power plant to facilitate engineering, procurement and construction (EPC) planning for the project. Once operating, the Cibuni geothermal power plant will produce about 236.5 million kilowatt hours of electricity annually, meeting the power needs of over 400,000 Indonesian citizens using clean, renewable energy.

This grant supports USTDA's U.S.-Indonesia Geothermal Development Initiative, launched in 2010, which is also supporting the feasibility studies for two additional geothermal projects and a training and capacity building program related to geothermal power development. It also promotes the prioirities of the government-wide U.S.-Asia Pacific Comprehensive Partnership for a Sustainable Energy Future, announced by President Obama at the East Asia Summit last month, which USTDA committed to support. These feasibility studies, for the Jailolo resource in Halmahera and Tangkuban Perahu resource in West Java, are being undertaken by PT Star Energy and AECOM and PT Indonesia Power and Cyrq Energy, respectively.