AboitizPower exits Indonesia geothermal project

 MANILA, Philippines – Aboitiz Power Corp. has withdrawn its participation in a geothermal power project in Indonesia to focus resources in ongoing projects.

In a disclosure to the Philippine Stock Exchange yesterday, AboitizPower said it decided to exit from the greenfield geothermal exploration and development project of its wholly-owned Singapore-based subsidiary AboitizPower International Pte. Ltd. (AP Intl) in Ijen, East Java province.

“AboitizPower has decided that it will focus and allocate its resources for other ongoing and pipeline projects and has agreed to step aside to allow its partner to proceed with the project,” the company said.

The power firm struck a deal with PT Medco Power Indonesia in September 2015 for a joint exploration and development of a potential 2x55-megawatt (MW) greenfield geothermal plant in East Java.

PT Medco Cahaya Geothermal, a subsidiary of PT Medco Power, was awarded the concession to develop the project.

Under the deal, AboitizPower will take in a 49-percent stake in PT Medco Cahaya.

Even with the decision to withdraw from the Indonesian power project, AboitizPower will continue with its hydropower projects in the country.

“We are actively pursuing hydro possibilities and keeping our eyes open for other potential projects,” AboitizPower president and chief operating officer Antonio Moraza said in a text message.

The power firm teamed up with SN Power AS and PT Energi Infranusantara to conduct the feasibility studies for the exploration and development of a potential 127-MW hydropower generation project along the Lariang River in Central Sulawesi, Indonesia.

The three companies will invest in the project company PT Auriga Energi, which was awarded the basic license to develop the resource.

At home, AboitizPower has 3,350 MW of sellable capacity, of which 39 percent comes from its renewable power plants such as geothermal, large hydro, run-of-river hydro and solar power plants.