Indonesia’s Medco Energi sells 49% stake in geothermal subsidiary to Ormat Geothermal Power.

Indonesia’s listed energy company Medco Energi Internasional is selling a 49% stake in subsidiary Medco Cahaya Geothermal (MCG) to New York-listed Ormat Geothermal Power. Financial terms were not disclosed. MCG is the owner of a 110 MW geothermal power plant in Blawan-Ijen, East Java. The company has an electricity purchase agreement with the state-owned Perusahaan Listrik Negara (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. Medco Energi has previously partnered with Ormat Geothermal for the development of the Sarulla geothermal power plant project in Tapanuli, North Sumatera.