Ormat Technologies, Inc. [NYSE: ORA] disclosed that it has partnered with PT Archi Indonesia Tbk to launch a Joint Venture (JV) company. The new firm which they both will collaborate to build will be named PT Toka Tindung Geothermal (TTG). The main aim of the JV firm is to search the potential of geothermal energy possibilities in the Bitung area of the North Sulawesi region, particularly within the Toka Tindung gold mine concession area.
Ormat is dedicated to discovering and expanding geothermal resources around the globe and its activity in Indonesia, which is an attractive market with important potential resources and strong government support, will assist the firm in attaining its growth plans. Likewise, Archi is excited to give its best for the national geothermal projects, and this is also consistent with its pledge to back environmental sustainability utilizing renewable energy sources.
Furthermore, the new Joint Venture named TTG will focus on creating a geothermal power project within the Toka Tindung mining concessions on an absolute basis. On the other hand, Ormat will complete the exploration drilling program at the Klabat Wineru prospect in the North Sulawesi province and finally the field development drilling program, operation, design, engineering, procurement, financing, construction, testing, commissioning, ownership, management, and maintenance of the Geothermal Facilities.
In addition, the shareholding arrangement of TTG is dependent on the execution of certain conditions, which come under a Power Purchase Agreement (PPA). As per the agreement, 75% shareholding interest will be provided to Ormat, while the remaining 25% shareholding interest will be given to Archi.