Ormat Industries Ltd. (TASE: ORMT) US subsidiary Ormat Technologies Inc. (NYSE: ORA) has signed an agreement for the development of Indonesia's Hu'u Dompu geothermal project, which has US government support.
The Hu'u Dompu geothermal project on the island of Sumbawa is part of President Barack Obama's US Asia Pacific Comprehensive Energy Partnership (USACEP) to encourage US companies to develop renewable energy in Southeast Asia. The project may reach 60 megawatts in three phases over the next six years.
Under the terms of the agreement with the initial developers, Ormat will own 90% of the project company, Pacific Geo Energy, with the rest held by Indonesian partners, PT Trimatra Energy and PT Bima Transindo Persada.
Ormat CEO Yehudit Bronicki said, "As the first greenfield development for Ormat in Indonesia, we are pleased with the opportunity that this project presents. Together with our new local partners and the support from US and international sources, we're hopeful that this prospect will be a successful source of renewable sustainable and affordable energy to Sumbawa island."
"President Obama has made it very clear that the United States is deeply committed to deepening our commercial and economic ties in the Asia-Pacific. Part of increasing our engagement in the region will be achieved as US and Asian businesses work together on projects that benefit both of our economies," said Secretary of Commerce Penny Pritzker. "A joint project like this represents a clear win-win for our bilateral commercial relationship with Indonesia, and demonstrates the opportunities that exist in the world's fastest-growing region for U.S. companies to not only sell their goods and services but share their expertise and drive development in high-priority areas like clean energy."
Published by Globes [online], Israel business news - www.globes-online.com - on October 8, 2013
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