Origin part of geothermal consortium

news.smh.com.au
September 2, 2010

Origin Energy Ltd says a consortium it belongs to has won a geothermal exploration concession in Indonesia. Origin Energy says it will hold a 47.5% interest in the Sorik Marapi concession in northern Sumatra. Tata Power of India will hold a 47.5% interest, while PT Supraco Indonesia will hold the remaining 5It% stake, the Sydney-headquartered Origin Energy said in a statement on Thursday. "It is estimated the Sorik Marapi concession could support the development of 200 to 300MW (MWs) of geothermal generation capacity", Origin Energy said.

Origin Energy executive director of finance and strategy Karen Moses said the joint venture was consistent with the energy producer and retailer's strategy of pursuing exploration opportunities for energy resources near growing markets. "Origin Energy had been assessing geothermal opportunities in the region since early 2009 and this joint venture is reflective of our belief that geothermal can provide large-scale renewable base-load energy", Ms Moses said in the statement.

Ms Moses said Sorik Marapi was a conventional geothermal resource similar to established operations in New Zealand, where Origin Energy had experience through its majority-owned subsidiary Contact Energy. Origin Energy also held interests in a number of geothermal exploration joint-ventures in South Australia, the company said. Tata Power managing director Prasad R Menon said geothermal energy was "one of the prime renewable growth engines". "The Sorik Marapi exploration is testament to our faith in the untapped potential of geothermal energy", he said.