Agrinergy

ERPA with PLN in Indonesia

26th June 2009

PT PLN (Persero) and Agrinery Pte. Ltd, have announced the signing of an Emission Reduction Purchase Agreement (ERPA) for a Clean Development Mechanism (CDM) Project - Bontang Gas Engine Power Plant in Bontang, East Kalimantan. This agreement was signed by Vice President for Environmental and Electricity Safety of PT PLN, Ms. Assistia Semiawan, and Mr. Ben Atkinson, Managing Director of Agrinergy Pte. Ltd.

Agrinergy Pte Ltd provides PT. PLN with an end-to-end solution - from identifying and registering climate change project through to sale of the resulting carbon credits generated by PT PLN through its Bontang gas engine power plant (GEPP) CDM Project. The signed agreement will allow PT PLN to transact carbon credits equivalent to 37.5 billion IDR within a 10 year period starting from 2010, the expected beginning of the crediting period.

The project activity is an installation and operation of a gas engine power plant by PT PLN with a total installed capacity of 14 MW, located in Bontang, East Kalimantan, Indonesia. This project is expected to generate 107.06 GWh net electricity per annum and this amount of electricity will be exported to isolated Bontang Grid through 20 kV switchgear. Construction of the project started in April 2008 and it is expected to start operating in August 2009.

Bontang GEPP project is inline with PLN’s mission which is “to run business activities in an environmentally friendly way” since it will reduce emission of green house gases that affect global warming.

As a CDM project, this project activity will bring benefits in many ways, for instance it will fulfill the electricity needs in Bontang, East Kalimantan, it will also support and contribute to the local economic sustainability, and moreover, it will bring positive impacts to the surrounding environment.

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