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President Director of Supreme Energy Rantau Dedap Supramu Santoso (left), CEO of ENGIE (2nd from left) and representatives from the lenders stand for photo session after signing a loan agreement to fund the Rantau Dedap geothermal project. (Photo credit : Twitter account of @JCBerthonnet of French Embassy)

ENGIE: Supreme Energy bags $540M loan to fund geothermal project

JAKARTA (RambuEnergy) – PT Supreme Energy Rantau Dedap has finally secured a loan worth US$540 million from Japan Bank for International Cooperation (JBIC), Asian Development Bank (ADB) and a group of major commercial banks from Japan to fund the first phase of Rantau Dedap geothermal power plant.

ENGIE, which is part of the shareholder of Rantau Dedap geothermal project, said the loan agreement has been signed on Friday (23/3), paving the way for the joint venture company to develop the Rantau Dedap geothermal project, located on Sumatera Island.

The other commercial banks that provided the financing are Mizuho Bank Ltd., Bank of Tokyo-Mitsubishi UFJ, and Sumitomo Mitsui Banking Corporation as well as Nippon Export and Investment Insurance as guarantor.

The first phase of the power plant, with an installed capacity of 98.4 MW is scheduled to start operation by in 2020, or three years since the financial closing is reached.

CEO of ENGIE Isabelle Kocher said after signing the financial closing that the Rantau Dedap geothermal project is the second geothermal project of the company in Indonesia, which shows its expertise in the development geothermal project and show its commitment to contribute to providing low-carbon and efficient electricity for Indonesia.

PT Supreme Energy Rantau Dedap is joint venture company of ENGIE, PT Supreme Energy, Marubeni of Japan and Tohoku Electric Power of Japan.

In the first phase, the JV firm plans to develop geothermal power plant with an installed capacity of 86 MW, supported by 12-16 geothermal wells. The drilling has been started and is scheduled to last for one year.

The company has signed power purchase agreement (PPA) with state electricity company PLN in November 2017. Based on the deal, PLN will buy electricity from the power plant at a tariff of 11.76 cent USD per kWh.

Project Background

The concession for the Rantau Dedap was awarded to the Supreme Energy – GDF Suez Consortium in early December 2010.  The Mining Area License was granted to the project company PT Supreme Energy Rantau Dedap (SERD). SERD have secured the price approval and assignment from the Minister of Energy and Mineral Resources through assignment letter No. 5834/26/MEM.L/2011 September 30, 2011.

The initial exploration program started in 2011, during which the company conducted an Airborne topographic survey and civil engineering study. Heat loss survey, report and the geoscientific interpretation as well have been completed by the end of February 2012.

On Nov. 12, 2012, PT Supreme Energy Rantau Dedap signed a Power Purchase Agreement (PPA) with the PT PLN. The signing was done by President & CEO of SERD, Supramu Santosa and President Director of PT PLN, Nur Pamudji, witnessed by Minister of Energy and Mineral Resources, Jero Wacik.

The signing of PPA marks a key milestone as it defines the contractual rights and obligations of the parties during the exploration phase, construction phase and operation phase – conditions which are necessary to start exploration drilling activities. (*)

Written by Roffie Kurniawan, email: roffie.kurniawan@gmail.com

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