Amoseas to expand geothermal plant<\/p>\n
Fitri Wulandari, The Jakarta Post, Jakarta<\/p>\n
Amoseas Indonesia, a unit of U.S.-based ChevronTexaco,
\nsays it will start the construction of a third geothermal power
\nplant, to be called Darajat III in Garut, West Java, at the end
\nof this year as part of its expansion in Indonesia.<\/p>\n
Bernie McCloskey, Amoseas Indonesia's president said the
\ncompany would invest up to US$110 million to build the 110-
\nmegawatt (MW) Darajat III geothermal power plant.<\/p>\n
\"We would like to see additional development in Darajat
\nbecause it is a very strong field and, probably in the future, we
\nwill have more than 330 MW,\" McCloskey told reporters during a
\npress conference on Monday.<\/p>\n
Construction of the plant will start at the end of the year
\nand commercial power production will begin in 2006.<\/p>\n
Darajat III represents an expansion of Amoseas's existing
\ngeothermal power plants -- Darajat I and Darajat II-- which have
\na combined capacity of 145 MW.<\/p>\n
The geothermal field is owned by state oil and gas firm PT
\nPertamina. Amoseas and Pertamina operates the field under a joint
\noperation contract in which Pertamina gets four percent of net
\noperating income.<\/p>\n
Amoseas will sell the power produced from the plant to state-
\nowned power firm PT PLN to help avert a looming power shortage in
\nthe Java-Bali power grid.<\/p>\n
Eddie Widiono, PLN's president, said the firm agreed to buy
\nthe electricity from Darajat at 4.93 U.S. cents per kilowatt hour
\n(KwH), lower than PLN's current power selling price of 6.8 U.S.
\ncents per KwH.<\/p>\n
\"We are seeking to develop more geothermal power plants as
\ndespite the high cost of investment, these plants have low
\nmaintenance costs as they use clean energy,\" Eddie said.<\/p>\n
Low power plant maintenance would help stabilize power prices,
\nhe added.<\/p>\n
Geothermal energy is produced when groundwater
\nfrom the earth's surface flows down and meets molten magma
\nascending from the earth's core in exceptionally hot
\nsurroundings.<\/p>\n
Geothermal is a clean fuel source with a carbon dioxide
\nemission rate 90 percent lower than that of oil-fired power
\nplants.<\/p>\n
Sitting astride a volcano belt, Indonesia has potential
\ngeothermal reserves of 20,000 MW but only 5 percent of this has
\nbeen developed.<\/p>\n
McCloskey said Amoseas would study the possibility of building
\na fourth Darajat unit in 2006.<\/p>\n
However, he said the company has still to renegotiate its
\nexisting contract with Pertamina, which stipulates that Amoseas
\nmay only expand Darajat power capacity up to 330 MW.<\/p>\n
The Pertamina geothermal field has reserves of 650 MW.<\/p>\n
McCloskey said the company had invested approximately $250
\nmillion to develop this clean fuel alternative since 1984 when it
\nstarted developing the Darajat I plant.<\/p>\n
Amoseas also aimed to seek financing for future projects by
\njoining the \"emissions trading scheme\" under the United Nations
\nKyoto Protocol which support companies that develop clean energy.<\/p>\n
\"We have already applied for their support so we can trade
\nemission credits with developed countries,\" McCloskey said.<\/p>\n
Amoseas is the first company in Indonesia to apply to
\nparticipate in the scheme, he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/amoseas-to-expand-geothermal-plant-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
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