Wednesday, 11 May 2011

Panax is doing well in Java

Courier Mail
23 April 2011, Page: 82

BENEFITING from an Indonesian Government push to roll out climate safe energy sources, Brisbane based geothermal developer Panax Geothermal is to jointly build a large geothermal power plant in East Java. Panax Geothermal said it had signed a binding deal with power company PT Bakrie Power, which holds the tender to build the 165 MW Ngebel project. Panax Geothermal will earn a 35% working interest in the project through funding exploration works before commercial development begins, at which point the companies will share development costs.

Panax Geothermal will be project operator during exploration and feasibility stages. Commercial development is due to start late next year. The Indonesian Government's carbon reduction plans include expanding the amount of zero emissions electricity from geothermal sources to more than 4000 MW within four years. "Panax Geothermal is committed to building a strong geothermal business in Indonesia", Panax Geothermal managing director Kerry Parker said. "This represents our fourth project in Indonesia". Indonesia offers a guaranteed feed in tariff of $US97 per MW/hour, plus carbon credits, to geothermal energy generators so as to provide certainty for renewable energy investors.

Australia, the biggest per capita emitter of greenhouse gases in the developed world, lacks a national feed in tariff for renewable energy. The Gillard Government is losing the battle to cut Australia's emissions of planet warming gases, with official data this week showing Australia's greenhouse gas output last year rose by 0.5% The data showed energy sector emissions including from power stations, transport and fugitive emissions form 75% of Australia's emissions, and the sector's emissions have soared by 44% in just 10 years.