Ormat Technologies, Inc. has signed and closed a set of agreements to acquire 49 per cent in PT Medco Power Indonesia’s subsidiary Ijen geothermal project company, which holds the geothermal licence to develop the Ijen project in East Java. The acquisition further bolsters Ormat’s global portfolio, and strengthens its position in Indonesia. Under the terms of the agreements, Ormat will acquire 49 per cent of the shares of the Ijen geothermal project company and will commit additional funding for project exploration and development, subject to specific conditions. A subsidiary of Medco Power will retain 51 per cent ownership in the company. Ormat and Medco will develop the project jointly. The geothermal project, which includes a geothermal concession and 30-year power purchase agreement (PPA) for up to 110 MW, is ready for exploration. Commercial operation is expected at the end of 2022.
