Medco Energi Tbk (MEDC), an oil and gas company that slowly branches out to renewable energy sector, revealed that the construction project of Geothermal Power Plant of Ijen has reached 93% of target.
Ronald Gunawan, Director & Chief Operating Officer of MEDC, mentioned that said project is included in the company’s portfolio related to clean energy supply. This geothermal project is projected to be able to increase clean energy production capacity by 110 megawatts (MW).
“Our first phase is to develop geothermal power plant of 34 MW with our partner, Ormat,” said Gunawan in Public Expose Live 2024 of MEDC today (26/8).
For the record, Ormat Technologies Inc. is a US-based company engaged in geothermal business. Orman is also known to be a vertically integrated company in the geothermal and renewable energy business.
In the joint venture established alongside Ormat, MEDC controls 51% of the shares, leaving the remaining 49% to Ormat. The value of this Ijen geothermal project is estimated to reach USD 145 million.
“We have completed the well drilling and testing, and the result confirms the capacity of 40 MW,” said Gunawan. “The first phase of construction of Ijen geothermal project of 34 MW has been carried out well, with commercial operation date scheduled in Q1 2025,” he added. (KR/ZH)