GDF Suez: JV To Develop 3rd Geothermal Project In Indonesia

French power group GDF Suez SA (GSZ.FR) Wednesday said it entered a joint venture along with Marubeni Corporation (8002.TO) and Supreme Energy for the development of the Rantau Dedap geothermal project located in the South Sumatra province. 

MAIN FACTS:

- The agreement follows the appointment of Supreme Energy as winner of the concession tender and the award of the geothermal mining license to PT Supreme Energy Rantau Dedap, the company charged with further development of the project. 

- Supreme Energy and IPR-GDF SUEZ were joined by Marubeni Corporation to constitute a partnership bringing to the geothermal sector in Indonesia an unmatched combination of technical skills, geothermal expertise and IPP development and operation experience in Indonesia and worldwide. 

- Supreme Energy Rantau Dedap will negotiate the Power Purchase Agreement (PPA) with PT. Perusahaan Listrik Negara for the sales of the electricity from the geothermal resource before starting exploration activities and the development of the power generation plant upon successful exploration. 

- The targeted 220 MW geothermal power plant in the Rantau Dedap area is part of the Indonesian government's second 10,000 MW accelerated electricity development program. It will contribute to meeting the rising need for electricity in the country, using renewable energy resources.