Raser Technologies Inc. and a unit of PT Perusahaan Listrik Negara, Indonesia's state utility, plan to build a 110-megawatt geothermal power plant in Indonesia, as high oil prices boost the attractiveness of renewable energy as a fuel source.
PT Indonesia Power, the Listrik Negara unit, will hold a 51 percent stake in the venture, while Provo-based Raser will own the rest, Tonny Agus Mulyantono, president director of Indonesia Power, said Tuesday. Raser will build the plant in the Tangkuban Perahu area in western Java.
The government wants Listrik Negara and private power producers to construct more plants that use geothermal energy, coal and gas as fuel sources after oil prices reached records. Indonesia, sitting on the Pacific Ocean's so-called Ring of Fire zone of active volcanoes, has an estimated geothermal potential of 27,700 megawatts, according to the energy ministry.
The plant is expected to start operations in 2013, and Listrik Negara has agreed to buy the electricity produced at 5.88 cents a kilowatt-hour for 30 years, Mulyantono said.