Ormat Technologies to establish a joint venture with Archi from Indonesia

Ormat Technologies, which specializes in the initiation, construction and operation of geothermal power plants, has signed an agreement to establish a joint venture with Archi from Indonesia - one of the largest gold mining companies in Indonesia and Southeast Asia.
The joint venture, which will have 75% of its rights in the hands of Ormat, was set up to carry out geothermal drilling in the Bitung area of ​​northern Sulawesi, Indonesia, and in particular in the concession area of ​​the Toka Tindung gold mine. The agreement is in line with the policy of the Indonesian government, which aims to increase the share of renewable energy in electricity generation to 23% in 2025.
The joint venture, to be called Toka Tindung Geothermal (TTG), will try to develop a geothermal power plant in the mining area of ​​a gold mine, if it succeeds in locating a geothermal reservoir. Ormat will carry out the drilling plan, open the geothermal field and be responsible for the financing, construction and operation of the power plant.
TTG is Ormat Technologies' third venture in the Indonesian Geothermal Energy Market. The company has built and owns 12.75% of the shares of the state-owned Sarulla geothermal power plant, which supplies 330 megawatts. The plant that sells the electricity it generates earned $ 9 million in the first half of 2021, according to an agreement that is valid until 2047. Ormat also owns 49% of the shares of a joint venture, in which a geothermal power plant called Ijen is expected to be built in eastern Java. 30 megawatts, this is subject to the success of experimental drilling that is being carried out these days.
Indonesia, home to about 275 million people, is considered one of the countries with the largest potential in the world of geothermal reservoirs, and is the country with the second largest installed capacity in the world of geothermal power plants, second only to the US.