Supreme Energy Rantau Dedap (SERD) announced today that SERD fulfilled all conditions precedent and reached financial closing allowing the first drawdown under the USD 50 million facility agreement, provided by The Asian Development Bank (ADB) supported by the Clean Technology Fund, for the Rantau Dedap Geothermal Project in Indonesia.
The Rantau Dedap Project is located in South Sumatra. During the initial phase, the project will be conducting the geothermal resource exploration involving the civil infrastructure construction, drilling and testing of wells. SERD expects to complete exploration drilling program in 2015.
If developed to the targeted capacity of 240 MW, the Project is expected to be able to support geothermal power generation capacity over 30 years to provide electricity access for around ± 490,000 households and an estimated net reduction in carbon dioxide emissions equivalent to 1.1 million tons per year. The project is part of the Second 10,000 MW Government Accelerated Electricity Development Program, of which around 4,000 MW should come from geothermal resources.
SERD is a company owned by PT Supreme Energy, GDF SUEZ and Marubeni Corporation. The Project will be implemented under a 35-year geothermal operating license, a 30-year Power Purchase Agreement with Perusahaan Listrik Negara that was signed on November 12, 2012, the national electricity utility company, and a business viability guarantee from the Ministry of Finance that was signed on November 21, 2012.