Geothermal: The Energy to Change the World

Official Newspapers of
the World Geothermal Congress
25 -30 April 2010

WGC2010

Daily News

Issue 3 / April 27, 2010

Bali International Convention Centre, Nusa Dua, Bali-Indonesia

Wgc2010

Geothermal, a Solution
for Global Warming
Developing
geothermalenergy­can be the best solution­
to address global warming
issues­. The efforts to speed up
the development of geothermal­energy have to be carried out immediately to
reduce the world’s dependence on fossil fuelthat harms the environment.
Those were highlights of the speech by
the Indonesian­ President Susilo Bambang­Yudhoyono when officially opened the World
Geothermal Congress 2010 on Monday at theBali International Convention Center in Nusa
Dua, Bali.
Also attending the opening ceremony were
Iceland President Olafur Ragnar Grimsson,­ theIndonesian­ Coordinating Minister for Economy,
Hatta Radjasa, and the Indonesian­ Research andTechnology Minister, Suharna Supranata.
“We are already beginning to feel theimpacts­ of the reality of climate change,”
President­Yudhoyono said.
“The level of carbon emissions into theatmosphere­ since the start of the industrial
revolution in the 19th century has risen todangerous­ levels. All of us know, of course,that to a very large extent, this is due to theincreasingly­ intensive burning of fossil-based
fuels to support human economic activity, andreckless consumption,” he said.
He emphasized that it is urgent to reduce
dependence on fossil fuel and replace it withrenewable energy.   
“We should now make a sustained effort totap sources of energy, that do not further add

index

Convener: Co-Convener:

Indonesian President Susilo
Bambang Yudhoyono hits thegong, marking the opening of
WGC2010to the problem of carbon emissions. To many
countries, including Indonesia, a large part ofthe solution to that problem is, the successful­tapping of vast resources of geothermal­energy,” ­­Yudhoyono said.
“What is at stake in this congress and inyour work is, a world that is changed for the
better­ through the use of a cleaner, safer andmore environment-­friendly source of energy,”
the Indonesian­ president said in front of 2.500
congress participants, comprising academics, experts, policy makers and geothermal companies.
Aware of the importance to develop
renewable­ andenvironmentally-friendly
energy,­Indonesia will spur the development ofEndorsed By:

geothermal projects to generate electricity.
Indonesia is currently only using 1,100
MW, some 4.2% of geothermal reserves in the
country,­ which constitutes about 40% of theworld’s geothermal potential. “This is going tochange. It is my intention that Indonesia will
become the largest user of Geothermal energy,”
Yudhoyono added.
Indonesia already have in place a setof long term policies for the developmentof geothermal­ energy, as embodied in the
Geothermal­ Development Roadmap of 20042025. Indonesia envisions that by 2025, about
five percent of our national energy needs, will
be met through the use of geothermal energy.

Supported By:

Organized By:interview:

OlafurRagnarGrimssonPresidentof Iceland
P.3

Sponsored by:
Diamond Sponsors:

Platinum Sponsor:

Gold Sponsors:

Silver Sponsors:

Other sponsors:

2headline

WGC2010 : Geothermal, a Solution for Global Warming
Indonesia have taken several important
steps toward that goal, including the four
projects­ covered by the Steam Purchase
Agreement­ ­between PT PLN and PT Pertamina­
Geothermal Energy, the establishment of financing­arrangements with the World Bank for the tapping of geothermal energy, and the delegationof authority over significant geothermal energy
reserves, to the provincial governments­of Central
Java, South Sumatera and West Lampung.
These activities, involving a total investment­of US$ 8.6 billion, will eventually produce some
2,885 MW of power and will help close the 4,500
MW energy­ gap that Indonesia is now contending­with, as a result of its rapid economic­development.
Indonesia will also invest in a network ofgeothermal centre of excellence, to develop
the know-how and expertise required toaccelerate­ the exploitation of this resource. “If
we find the ways and means of tapping thesegeothermal energy resources and make full useof them, there would be substantially less carbon emissions, in the atmosphere of our planet.
That would significantly help to mitigate theimpacts of climate change,” Yudhoyono­said.
President of International Geothermal­
Association­(IGA), Ladislaus Rybach, appreciated­Indonesia’s success in developing geothermal. The
expansion of geothermal use in the country has
grown up to 5% per year, the highest­growth rate
among countries that developing­­­the energy.      Indonesia ranks third in the utilization ofgeothermal as a source of energy, after theUnited States and the Philippines.
“Indonesia is the first in the growth rate ofproducing geothermal energy,” Rybach said.
Iceland President Olafur Ragnar Grimsson­
highlighted that WGC2010 should be a defining­
moment to accelerate geothermal use as an
WGC2010 DAILY NEWS
Editorial Team
Nurdin Al Fahmi, Nila Sofianti, Stannia Agatha,
Harfiyah Widiawati, Rosalind Lawless,Ni Komang Erviani, Supardi, Setia Rahma,
Zul T. Eduardo, Frina Bonita
Technical Adviser
Ifnaldi Sikumbang (INAGA)
Project Coordinator
Ika Nazaruddin
WGC 2010 Media Sub-Committee
Tri Harwanto (Chair)Grace Wiroreno
Jim Lawless (IGA)
Eduardo R. Iglesias (IGA)
To view current and past issues of the WGC 2010
Daily News online, please visit

www.wgc2010.org

The views expressed in the articles, featuresand listings are not necessarily those of the
WGC2010 Organizing Committee or the editors.

alternative­energy.
“We now enjoy an opportunity to highlightthe importance of geothermal production,
innovation,­ technological breakthroughs ofgeothermal sector that countries have brought
to the forefront,” he said.
“Geothermal can be harnessed to combat
climate change and provide clean energy andthus enhance the prosperity of people in thewhole world.”
Grimsson said that Iceland has enjoyed great
advantages from the utilization of geothermal.

Taking the theme “Geothermal: The
Energy­ to Change the World”, WGC2010 is
supported­ by many governments with highlevel­­­ representatives­ attending from China,
Germany,­Iceland, Indonesia, Italy, Japan,
Kenya,­ Mexico, New Zealand, The Philippines,
Uganda and USA, as well as from international
institutions­and financial organizations such as
The World Bank, United Nation Environment
Program and the European Union.
This fourth WGC involves representatives
from 85 countries worldwide. The first congress­
was held in 1995 in Italy, followed by the second­in Japan, and the third in Turkey.

The Signing of geothermal projects
in indonesia
in conjunction with WGC2010, a number geothermal projects were signed during the Opening Ceremony . Among others were Power Purchase Agreements of Sarulla power plant by
MedcoEnergi,­ PT PLN and Pertamina­ Geothermal Energy (PGE); and confirmation agreementwith Sarulla consortium­for geothermal energy. There has also been the MoU signing of someprojects of Gunung­ Ungaran­ power plant project owned by PT Golden Spike Indonesia, Gunung Rajabasa power plant project­owned by PT Supreme Energy.
PT Medco Energi Internasional Tbk (“MedcoEnergi/Company”) through its indirect
subsidiary,­ PT Medco GeoPower Sarulla (“MGS”) , which is operated under its wholly owned
subsidiary PT Medco Power Indonesia (”MPI”), with its consortium member Itochu, Kyushu,
Ormat,­and PT. PLN Persero (“PLN”) have signed a Power Purchase Agreement (“PPA”) of Sarulla
330MW Geothermal Power Plant, North Sumatra with electricity price of US$ 6,79 cent/kWh.
AGENDA | April 27, 201008.30am – 10.10am

Technical Session

Room A

10.40am – 12.20pm

Technical Session

Room A

12.20pm – 01.20pm

Lunch Break

01.20pm – 03.00pm

Technical Session

Room A-J

03.30pm – 05.10pm

Technical Session

Room A-J

07.00pm – onward

Indonesian Cultural NightGWK Park

notification:

The member of Western Pacific Regional Branch of IGA are invited toattend ­the Annual General Meeting at Hibiscus Room of bicc
on Wednesday, April 28 at 5-6 p.m. Please be there.

Offcial Newspaper of the World Geothermal
Congress 2010 3
interview

WGC2010

Geothermal energy has helped
Iceland...
Olafur Ragnar Grimsson
President of Iceland
Iceland is known as
one of the countries thathave successfully maximized its geothermal
resources. WGC2010 Daily News spoke
to Olafur Ragnar Grimsson. Here are
the excerpts:
We congratulate you that Iceland is one of
the few countries in the world which successfully develop­ geothermal resources. What
has been the key to your success in this area?
It has been a very interesting and inspiring
development­and a history that many countries­
can learn from. It was not a grand government systems that lead to the development.
it mostly­ came because of the initiatives taken
by local­ communities as well as by the national
government.­It has also been helped by the workof our scientists, engineers and our experts.
Yes, indeed, geothermal energy has
helped Iceland to survive the recent banking shock, especially­ because the cost ofheating and electricity­ for ordinary people, families, homes and business­ companies was only a small proportion­ ofwhat it is in other European countries.
But also because our geothermal resources
make Iceland a very attractive location forindustrial­investment,­and will do so even morein the coming years : for aluminium smelters,

WGC2010 Daily News spoke toOlafur Ragnar Grimsson

Olafur Ragnar Grimsson

data-storage centres, high-tech industries andother profitable enterprises.
When did the development of the geothermal industry first start up in Iceland? How
was this accomplished?
We first started to use geothermal in Icelandin the 1930’s and 40’s. Throughout my lifetime
the geothermal sector has moved from a very
limited­ space heating programme to heating­
the whole country then selling electricity toaluminium­ smelting­ company’s and also selling data storage­ to foreign companies throughthe use of the electricity­created by geothermalenergy.
Out of all the power generation in Iceland
how much is generated through geothermal
resources?

It is ever increasing. From about one quarter to athird of all our power is generated by geothermal­
resources.
What Indonesia can learn from Iceland?
It is important for Indonesia to put emphasis
on local and regional geothermal projects, as
the country is extremely rich in geothermal­
resources.­It is important to utilize the geothermal­
resources­ and to be aware of not only theelectricity­­­ potential­ but also the potential­ ofother economic growth factors such as spas andgreenhouses.
Bali is often described as an island withstrong traditions. how would you comparewith your own people?
I believe that people who live on islands andclose to the ocean have an understanding of
harmony­and respect of nature. I also believe thatpeople who live on islands develop a sense of
self-reliance.­ Respect of nature and self-relianceare two traits that both Iceland and Bali share.
Recently there was a volcanic eruption insouthern Iceland which hindered a lot of
travel­ ­across Europe. did you have any
issues?­Because of the nature of the eruption and thewind direction it was only within the last few
days that air travel out of Iceland was stopped
and we had no issues with leaving the country. However­ ­­I do know that some of the otherdelegates­from Iceland­could not attend, as they
couldn’t change their flights. I am not worried to
fly since we have a very high safety standard.

4columnAfrican Rift Geothermal Risk mitigation program(ARGeo)­—R. Gordon Bloomquist, Chair IGA WGC 2010 Steering Committee

The World Bank, realizing thatchase Agreement­ (PPA) that will provide project­

cover­so called drilling risk for which conventional­

substantial barriers stand in theparticipants with an assurance that if the drilling

drilling insurance is normally available.

way of accelerated geothermal de-phase is successful that there will be a market for

The insurance program is in the form of avelopment, initiated two programs

the power that may be produced.­Other post drill-

contingent­ grant and no money is made available­

to address the needs of countries in Eastern anding TA can be provided­ for the development­ ofto the recipient of the insurance coverage­ until­

Central Eurasia and the East African Rift Zone. The

business plans and financing­ packages, final ne-such a time that the well is deemed to be a failure.­latest, ARGeo program initially designed to serve

gotiation of the PPA and a recent addition to the

The World Bank has, however, considered

six East Africa Rift Zone countries, was initiated inprogram is an internship program where project

alternatives­to World Bank backed Geological­Risk

2006. Now after numerous delays, it appears thatdevelopers can nominate­ individuals to receive

Insurance. One alternative that has been discussed

final World Bank Board approval for the initiationinternship positions with geothermal developers

at length is the purchase­ of insurance­ coverageof activities will take place later in 2010.

and/or operators in to gain needed expertise priorfrom conventional insurance­providers.­The major

to the project coming online.

downside of such an approach­ is the lack of such

The ARGeo program has two windows offocus: A Technical Assistance (TA) window and a
Geological Risk Insurance (GRI) window.

The greatest impediment to more wide
spread geothermal development in the ARGeo

insurance providers­ and the very high premiums
that any such insurance provider would require.

A major component of ARGeo is directed­to-eligible countries is, however, the high risk andHowever, the major advantage of such anward TA and the focus is upon capacity­ building,­

substantial financial investment that developers­

approach would be that given enough experience­

removal of legal, institutional and regulatory

must make in conducting exploration­ activities­

in the provision of insurance by the insurance

barriers and conducting exploration­ activities.

and reservoir confirmation­drilling. The Geological­

industry,­ premiums would begin­ to fall as accrual

Under the ARGeo program the UNEP will be in

Risk Insurance­program, which is the corner stone

data became more available. In addition, if a viablecharge of all pre drilling TA while the World Bankof the ARGeo program, is designed­ to absorb ageothermal insurance industry­ was so created it

retains management of the Geological­Risk Insur-

major portion of that risk by providing an insur-

would continue to serve the geothermal industry

ance Window and also has the ability to provide

ance against the failure of the reservoir­confirma-

long after the World Bank and other governmen-

limited TA to address post-drilling issues. Sometion drilling program to confirm the existencetally sponsored­programs have been terminated.

post drilling issues, however, must receive at leastof an economically exploitable­ geothermal re-

A third approach could well be the hybrid­ oflimited attention­ prior to the initiation of thesource. Criteria for success or failure is negotiatedthe above two with enough insurance industry­

drilling phase and can be covered­ by the Worldprior to the initiation­ of the drilling­ activities. The

involvement so as for the industry to be able

Bank. These activities­ include negotiation­ of theinsurance­ coverage applies­ only to eligible costto gain accrual data without having to absorb

concession­or lease agreement­and where outside­

factors and any failure­ is based solely on geo-

unacceptable­risk and /or requiring­premiums­that

financing­ is required,­ the basis for a Power Pur-

logical parameters­and no coverage is available towould be unacceptable to project­developers.­

BALI AND BEYOND

WGC2010

GWK, Bali’s massive cultural park
Among the WGC2010 escapades outside the conference­venue is the Indonesian Cultural Night held at Garuda
Wisnu Kencana (GWK) Park, tonight. The main attraction of the park, located on a hilly area 263-meter above
sea level in Ungasan village, is Garuda­ Wisnu Kencana
statue. The statue, created by noted Balinese sculptor­I Nyoman Nuarta,
depicts the God of Wisnu riding his mythical bird Garuda.­
In this place you must be amazed! You can see a huge statue, built
as a symbol of global and environmental conservation mission. It is projected to be visible from some 20 kilometers away, thus can be seen from
Kuta, Sanur, Nusa Dua and Tanah Lot.
Made of a mixture of steel and copper, this unfinished statue is 4,000ton­­ weight, 75-meter high and 60-meter wide. Once the construction iscompleted, it is said to be the largest statue in the world, even larger thanBronze statueof God Wisnu,
the park’s main
attraction

5

Natural lime rockdominates themassive view of
GWK

The gigantic
mystical Garuda
bird

the liberty.
The already completed parts of the statue
feature half of the body of Wisnu and the headof Garuda. This 250-hectare cultural park alsoboats a unique architecture. It is situated in alimestone plateau in the southern coast of Bali.
Pillars made of limestone, with the Garuda headas the backdrop, is a stunning view in the park.
In several spots around the park, thelimestone­ plateau is vertically engraved, forming
tribune-like walls with a carpet of green grass on
the ground.
Stretching from the backside of the park to
the front of the Garuda statue is a con-block path

dividing the grass field. Various internationalscale­­­cultural events often take place here, since
the park is big enough for thousands of visitor.
Therefore, don’t forget to attend theIndonesian­ Cultural Night, because you will
not only enjoy the unique artistic marvels of
the park, but also the amazing performance ofover 200 Balinese dancers. They will performa geothermal­ dance known as Bayu Pertiwi(The force of nature) created by Bali’s foremost
coreographer, DR. Ni Made Ruastiti.
Don’t miss it…

Powering
The Country
With Green
EnergyPT Pertamina Geothermal Energy (PGE) is
responsible for developing, managing
and sustaining a diversified portofolio of
upstream energy related businessthrough organic expansion and strategic
alliance planning. With over 30 years ofexperience in the geothermal field
operator with a 95% delivery rate, PGE will
constantly strive to be the “Center of
Excellence for theIndonesia Geothermal
Industry”
PGE Supported by qualified humanresources in technology in the upstream
geothermal industry. With large potential
reserves for development andcommercialization along with extensive
assets, PGE is geared toward powering
the country with green Energy.

www.pgeindonesia.com

6Offcial
BALI
AND BEYOND
Newspaperof the World Geothermal Congress 2010

Unique Booths, with Living Cultural Touchover a glass-window floor with magma-like lightcombinations which replicates flowing molten
rocks underneath the earth. Another interesting
feature of the booth is its organic-rice plantation
model, a low-cost yet high value, healthy planting
system of the Indonesian staple food.
Iceland, meanwhile, seems to try to impress visitors­ with its vast array of geothermal
success­ story, featuring a number of engineering
companies­ with segmented expertise in drilling,geo survey, construction, overseas investment,
and even a geothermal financial partner.
Indonesian President Susilo Bambang
Yudhoyono­ guided Iceland President Olafur

Living culture createsthe state oil andelectric booth alive

Among 81 exhibition booths at
the WGC2010, the one belonging
to the Indonesian­ Ministry­ of Energy & Mineral Resources­ seems
to easily catch everyone’s attention for its unique, unusual theme that featuresmodernity­mixed with traditional Balinese­touch.
The entrance is the key to its uniqueness,featuring­ a typical Balinese split gate on one sideand the same structure on the other end. On theright side front of the gate there is an elevated­structure where a small group of Balinese gamelan
traditional musicians play live accompanying
dancers to welcome every guest.

photo gallery

Serene yet ecstatic atmosphere at the
WGC2010 opening ceremony at Nusa Indah
Hall“Not only the structure, but also the living
culture­ like the gamelan and the dancers thatusually­ make our booth always crowded, being
the center of attention” said Manto, the Indonesian
Ministry­of Energy & Mineral Resources exhibition­
project­executive­. The local tradition is to balance
the modern, technological sides of the energy­ issue. “The living culture like dance and traditionalmusic is the part that makes the modernity­ like
geothermal engineering looks more harmonious
with nature,” explained Manto.
Another unusual feature is seen at Medco
Energy­booth. They come up with a unique corner,­looking like a subway where visitors may walk

Lava rockflowing under
the glassflloorRagnar­ Grimsson to the exhibition­ hall. Bothheads of the states seem to be happy with theinitial success of the conference, highlighting­ theenthusiasm of the exhibitors.­
They visited the exhibition right after the
WGC2010 opening ceremony.

The ­Balinese dance ­performance­
attracts many to point theircamera lens

The VIPs at the
WGC2010 opening
ceremony (from left)Indonesian Coordinating Minister
for Economy Hatta
Rajasa, IGA President
Ladislaus Rybach,
Iceland President andfirst lady Mr and Mrs
Grimsson,Indonesian
President Susilo Bambang Yudhoyono,
INAGA President
Surya Darma, andHead of IndonesianGeology Agency,R.
Sukhyar.

Offcial Newspaper of the World Geothermal corner
Congress 20107

GLOBAL CONSULTING COMPANYSENIOR EXECUTIVE APPOINTMENTS – ENERGY SECTOR

Regional Director, Energy, Asia
You will be responsible for expanding and building
Energy business in Asia with an initial focus on
India, Indonesia and Vietnam.
You must have a strong focus on client relationships and business development. Over 10 years
relevant working experience in Engineering Consulting Companies or Energy Utilities and Developers.
Location: Flexible although anticipated to be inSingapore or Kuala Lumpur, Malaysia
Business Development Lead, Indonesia
You will be responsible for business developmentin the Indonesia Energy Sector as well as otherinfrastructure sectors particularly Water andTransportation.
You are required to prepare and develop proposals
as well as manage and deliver engineering assignments.
Location: Jakarta, Indonesia
Geothermal Engineers
You will be part of the expanding geothermalenergy team in Indonesia. You should be university qualified from Mechanical, Electrical or Civil
engineering with a good command of the English
language.
You should have a minimum of 5 years experience,
however, new graduates may be considered.
Location: Jakarta, Indonesia
Apply with your CV and details in confidence to Resume@aecom.com
Please visit our web site at www.aecom.com

At AECOM our purpose is “To enhance and sustain the world’s
built, natural and social environments”. As an engineering, design and program management company that employs 47,000
people worldwide, we have become the market leader in thedevelopment and delivery of major infrastructure around theworld. Our culture thrives on people with passion and energy
and an aspiration to win.
Our Global Energy business is a leader in providing clean energy solutions for a sustainable low carbon future. The rangeof services offered by AECOM Energy include management
consulting, project evaluation, project financing, planning,
conceptual and detailed design and project and asset management.
AECOM is experiencing rapid growth in the power and energy
sector and the Energy Business Line has decided to expand
their operations in Asia by appointing two senior executives
capable of leading and developing a planning, engineering andproject management business in the region. The business will
focus on the following market segments: energy efficiency,
carbon management, environmental management, transmission and distribution, hydropower and dams, thermal and geothermal, renewables and project and program management.
The positions will suit senior professionals working in the
Energy Sector looking for a new opportunity to develop theircareer by taking a leadership role in an expanding global
energy company. Candidates should possess excellent interpersonal skills, a tertiary qualification and proven businessdevelopment and consultancy experience in the Asian powerand energy markets.

8 public corner
Elvi Nasution Schacfer
Energy Specialist World Bank
In my opinion the geothermal issue is appropriate with the recent condition and this is thefirst time I join World Geothermal Congress. I
cannot comment much since it is just officiallyopened. However so far I find all the arrangement of the congress is excellent, and the place is also appropriate for such world event. I just wish the congress every success.

Emily Clearwater, New Zealand.

Gareth Cooper, Australia
From an Australian point of view the scale ofthings is very impressive. I am very excited to
see what the local people are doing and topick up some tips from them and also share
our knowledge.
Aniko Toth, Hungary
I am enjoying the conference so far. My favorite
part so far was the Balinese dancing at the opening ceremony. It was very beautiful.

This is my first international conference so I amvery excited. Bali has a wonderful culture.

Makky Jaya , Indonesia
Jialing Zhu, China
We are very happy to be attending the WGCagain this time in Bali. We are looking forward togain knowledge from people all over the world totake back to China.

Philippe Jousset , France
I have found the conference very good so far
it is very well organized and it is nice to visit
Bali for the first time

Being Indonesian even though I am now
working in Germany it is very special that the
WGC2010 is being held here in Bali.

Hon Kiraitu Muraungi,
The minister of energy – Kenya.
Kenya has a very large geothermal resource
so the WGC2010 is the perfect opportunity
for us to meet new partners to work upon
geothermal energy within our country. We arevery excited.

Banyu Biru Djarot,
Direktur PT Antareja Resources
Ramon Chito Cedric M Malate
Philippines
It is very exciting to attend the WGC2010. It
is a great opportunity to catch up with oldfriends, and meet new ones while also learning at the same time.

Our company is proud to be able to participate in WGC2010 in Bali. With the presenceof the Iceland and Indonesian presidents aswell as a number of important geothermal
players, we can notice the existence of Indonesia in the geothermal industry. Hopefully Indonesian target toestablish 4000 MW geothermal power plant can be achieved andIndonesia can be a leader in geothermal use in the future.

cornerLadislaus “Ladsi” Rybach, IGA President (center) visited the
WGC2010 Daily News room accompanied by Herman Darnel
Ibrahim (WGC2010 chairman of the organising committee),
Agusman Effendy (WGC2010 Organizing Committee), posingwith the editorial members.

notification:

IGA will hold a General Meeting on April 28, 2010. The meeting will start at 6 p.m. at Hibiscus Room andFrangipani Room at the BICC. All WGC2010 participants are welcome to the meeting where information about
the main IGA activities in the past as well as plans for the future will be given.