Geothermal


GREEN POWER

Indonesia has the greatest geothermal energy potential in the world. Positioned perfectly on the Ring of Fire that circles the Pacific Ocean, the nation has an abundant source of clean, sustainable energy to complement its immense hydrocarbon and coal reserves. The Indonesian Government is fully aware of its geothermal possibilities.

At the UN Climate Conference in Bali in December 2007, the President of the Republic of Indonesia, Susilo Bambang Yudhoyono, pledged to provide the right encouragement and incentives to allow geothermal power generation and heat production to grow enough to contribute 5% of the country's primary energy supply by 2015-20.

In line with its long-term strategy to create real value for all its stakeholders, Star Energy acquired the 110 MW Wayang Windu geothermal generation facility in November 2004. While Jailolo Geothermal is the newest addition to the exploration portfolio in Star Energy’s effort to develop other geothermal business that was successfully won on 2009.

Instrumental in the decision to invest in Unit 2 and Unit 3 at Wayang Windu is the potential revenue from CO2 emission credits that are generated by the project. Geothermal electricity generation, unlike coal or diesel or natural gas fired power, is virtually free of any green house gas emissions. This means that the project, when certified by the United Nations, can generate greenhouse gas "credits". These credits have a significant monetary value when they are traded in world markets, where they can be purchased by polluting industries to offset their own greenhouse gas emissions. In this way, Star Energy is making a significant contribution to a cleaner, greener future in which climate change will hopefully become a diminishing threat to the world.