Panax announces Indonesian development project

Panax Geothermal has signed an agreement with a major Indonesian power company, PT Bakrie Power, to develop a 165 MW geothermal project in East Java.

It’s the second deal the Brisbane geothermal exploration and development company has negotiated in under a month and its fourth geothermal project in Indonesia.

The agreement to develop the Ngebel Geothermal Project will supply power to Indonesian state-owned power company PT PLN (Persero).

“The Ngebel project has enormous potential; it is a near-term development project in a strategic location that is underpinned by a guaranteed, commercially attractive power tariff with the potential to expand to more than 200 MW,” Panax Managing Director Kerry Parker said.

“This a positive step forward in Panax’s plans to secure more projects in the Asia-Pacific region and make the most of the guaranteed feed-in tariffs, abundant geothermal resources and renewable energy incentives on offer in Indonesia.

“Panax is committed to building a strong geothermal business in Indonesia. The company’s combined share of potential generating capacity in Indonesia now exceeds 160 MW.

“Strong local partnerships are important for doing business in Indonesia and gaining government and community support.”

A large amount of exploration works has already been carried out in the project area and Panax will fund the acquisition of existing data and reports.

Commercial development of the project is expected to commence in late 2012.