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US firm Ormat to develop 60MW Indonesia geothermal power project

Ormat signs contract for first US-Indonesia geothermal project Hu'u Dompu to be built over next six years

The geothermal power project will be built at Indonesia's Sumbawa Island

US firm Ormat Technologies has signed a contract to develop a geothermal power project with up to 60MW capacity in Indonesia. Ormat has announced it has signed an agreement for the development of the Hu'u Dompu project on Indonesia's Sumbawa Island.

The news follows President Obama announcing the US Asia Pacific Comprehensive Energy Partnership (USACEP), which aims to encourage US companies to develop renewable energy in South East Asian countries, including Indonesia. It also comes after geothermal developments in India. RET reported in August plans are underway to build India's first geothermal power plants.

The Hu'u Dompu greenfield geothermal project will be located in West Nusa Tenggara Province on Indonesia's Sumbawa Island. It may be developed for up to 60MW in three phases over the next six years. Ormat will develop the project through the company Pacific Geo Energy (PAGE).

Dita Bronicki, chief executive officer of Ormat, said: "As the first greenfield development for Ormat in Indonesia, we are pleased with the opportunity that this project presents. Together with our new local partners and the support from US and international sources, we're hopeful that this prospect will be a successful source of renewable sustainable and affordable energy to Sumbawa Island."

Ormat said its greenfield development experience combined with extensive knowledge of the Indonesian geothermal market brings significant value to meeting USACEP goals. In addition, the Hu'u Dompu geothermal project will benefit from Ormat's phased approach to greenfield development, unique exploration tools developed in the US, flexible power plant technology and operational experience, the company said.

The development of the Hu'u Dompu geothermal project will contribute significant economic value to the US industrial sector and support valuable domestic US jobs in renewables. An estimated 530 US jobs will be created or retained throughout project development. Upon completion, the Hu'u Dompu geothermal project will save 500,000 tons of carbon dioxide emissions each year of operation.

US secretary of commerce Penny Pritzker, said: "A joint project like this represents a clear win-win for our bilateral commercial relationship with Indonesia."