Raser will assess the technical, economic, and financial feasibility of the geothermal resource, including the potential impact and opportunity the project will have for it and other US 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, which has nearly 9,000MW of total capacity, including 375MW of geothermal power generation in Indonesia 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.
Leocadia Zak, director of USTDA, said: ”We are pleased to support Indonesia Power and Raser Technologies as they commit to help Indonesia draw upon its extensive geothermal reserves. We hope that the US-Indonesia Geothermal Energy Initiative will reinforce the importance of maintaining a strong commercial relationship between the US and Indonesia.”
