Raser Technologies, Inc. (NYSE Arca:RZ) has been chosen to develop, in conjunction with Indonesia Power, more than 100,000 acres of geothermal resources to build an estimated 110 megawatts (MW) of geothermal power in West Java, Indonesia’s most populated island.
Indonesia Power is a unit of PT Perusahaan Listrik Negara (PLN),
Indonesia’s state owned utility and has 127 power plants producing
8,888 MW of power. Indonesia Power will hold 51% ownership in the
venture with Raser, while Raser will own 49%.
It is expected that the
capital to fund the development of the project in West Java will be
independently financed.
PLN is expected to purchase the geothermal power in an effort to
reduce its exposure to rising oil prices. Due to growth and rising fuel
costs, Indonesia is experiencing an energy crisis and is actively
pursuing a plan to grow geothermal power. Indonesia has a stated goal
to more than double its current 838 MW of geothermal power output by
2010 and to further grow its geothermal power generation to 9,500 MW by
2025. Outside of the United States, Indonesia has the world’s largest
geothermal power generation potential.
"We are excited about working with Indonesia Power to expand our
geothermal development," stated Brent M. Cook, Raser’s CEO. "We
recognize their expertise in geothermal power operations and applaud
their commitment to further develop Indonesia’s significant geothermal
resources."
The acreage to be developed surrounds the Tangkuban Perahu volcano, approximately 15 miles north of Bandung, the capitol of the West Java Province. Bandung has over 2 million people and is the largest city in the West Java Province, which has over 35 million residents.
Utah Units Set
Raser also announced today that it has completed setting all of the first 50 geothermal generating units at its Thermo plant in Beaver County, Utah. The plant is on schedule and Raser expects to begin producing power by October 2008, five months after holding a groundbreaking ceremony to begin the construction phase of the development.
The Company is nearing completion of its well field at the Thermo site and announced the close for its construction and permanent financing yesterday for the geothermal project.
About Raser Technologies
Raser is an environmentally focused technology licensing and development company operating in two business segments. Raser’s Power Systems segment is seeking to develop clean, renewable geothermal electric power plants and bottom-cycling operations, incorporating licensed heat transfer technology and Raser’s SymetronTM technology developed internally by its Transportation and Industrial Technology segment. Raser’s Transportation and Industrial Technology segment focuses on extended-range plug-in-hybrid vehicle solutions and using Raser’s SymetronTM technology to improve the torque density and efficiency of the electric motors and drive systems used in electric and hybrid-electric vehicle powertrains and industrial applications.
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