Ormat Technologies, a Reno, Nev.–based renewable energy technology provider, has closed a set of agreements to acquire a 49 percent stake in the Ijen geothermal project company from a subsidiary of Medco Power, the largest listed energy company in Indonesia.
The sum of the transaction was not disclosed.
The Indonesia-based project assets include a geothermal concession and 30-year PPA for up to 110 megawatts of capacity.
The subsidiary holds a 51 percent ownership in the company, in addition to the geothermal license to develop the Ijen project in East Java.
With the deal, Ormat will provide additional funding for the project exploration and development, subject to specific conditions. Ormat and Medco will develop the project jointly.
The project is ready for exploration and development with some slim holes already drilled, and commercial operation is expected at the end of 2022. The final capacity will be determined after exploration.
The acquisition will strengthen Ormat’s global portfolio, as well as its position in Indonesia.
