Interlink Client Raser Technologies Receives USTDA Grant for Feasibility Study for Geothermal Project in Indonesia
Provo, UT, March 29, 2010 – Raser Technologies, Inc. (NYSE: RZ), an energy company, announced today that the United States Trade and Development Agency (USTDA) awarded Indonesia Power (IP) grant funding in the amount of $934,308 for a feasibility study of the Tangkuban Perahu geothermal concession. IP has selected Raser as the sole-source contractor to perform the study, which will assess the technical, economic, and financial feasibility of the geothermal resource, including the potential impact and opportunity the project will have for Raser and other U.S. suppliers in the Indonesian market. Raser will receive payments from the grant funds directly from USTDA as study milestones are completed. The grant will cover approximately 70% of the study, with Raser, as sole-source contractor, contributing a cost share of approximately $400,000.
Raser and IP entered into a consortium agreement in 2007 to jointly pursue geothermal development in Indonesia. In 2008, IP and Raser were awarded a 100,000 acre concession surrounding the Tangkuban Perahu volcano, approximately 15 miles north of Bandung, the capital of the West Java Province. Raser and IP have agreed to a 50/50 development arrangement for potential future projects within the 100,000 acre concession. IP is Indonesia’s largest electricity generation company, with nearly 9,000 MW of total capacity, including 375 MW of geothermal power generation, which makes it the second largest geothermal generation company in Indonesia.
Djoko Hastowo Budihardjo, Chief Executive Officer of Indonesia Power said, “We are grateful for the support of the U.S. Government via the USTDA and believe this grant money will help us with our commitment to unlock more of the great geothermal resources in Indonesia. We also look forward to working with Raser Technologies.”
Tim Bridgewater, Chairman of Interlink Capital Strategies, which played a key role in the USTDA grant application process, added “This grant will result in U.S. jobs and will create opportunity for potentially hundreds of millions of dollars in U.S. exports and services to Indonesia. We applaud the USTDA and Raser for moving forward on this kind of job creation opportunity.”
The USTDA and IP signed the grant agreement during a ceremony in Indonesia, March 29, 2010 in advance of U.S. President Barack Obama’s visit to Indonesia.
“We are pleased to support Indonesia Power and Raser Technologies as they commit to help Indonesia draw upon its extensive geothermal reserves”, said USTDA Director Leocadia I. Zak. “We hope that the U.S.-Indonesia Geothermal Energy Initiative will reinforce the importance of maintaining a strong commercial relationship between the U.S. and Indonesia.”
Due to growth and rising fuel costs, Indonesia is experiencing an energy crisis and is actively pursuing a plan to grow geothermal power capacity. With over 24,000 MW of total estimated capacity, Indonesia is considered to have the world’s largest geothermal power generation potential outside of the United States.
“We’re excited to be a part of the USTDA’s U.S.-Indonesia Geothermal Development Initiative,” said Nick Goodman, Raser Chief Executive Officer. “We look forward to beginning the study and supporting IP’s commitment to expanding Indonesia’s renewable energy footprint through geothermal resource development.”
The feasibility study is expected to begin in May 2010 and be completed in 2011.