Indonesia's Medco Energi to sell 49% of geothermal power plant to Ormat Geothermal Power

The plant is still in development and is expected to start by end-2022.

PT Medco Energi Internasional Tbk is selling a 49% stake in its subsidiary Medco Cahaya Geothermal (MCG) to New York-listed Ormat Geothermal Power for an undisclosed amount, an announcement revealed.

Medco Energi owns 100% of MCG through its arm Medco Power Indonesia (MPI). MCG owns a 110 MW geothermal power plant in Blawan-Ijen, East Java, which is under a power purchase agreement (PPA) with PLN for 30 years.

The project is currently still in the development phase and commercial operations are expected to start by the end of 2022.

MCG is entitled to a 35-year geothermal concession from Indonesia’s Ministry of Energy and Mineral Resources.