Contribution to CO2 Emission Reduction (CDM Project)

PT Supreme Energy Rantau Dedap acquired Rantau Dedap Geothermal Business License in December 2010 to develop of the Rantau Dedap Geothermal Power Plant. The geothermal site is 183 km from Palembang, South Sumatera, and located in three regencies, namely Muara Enim, Lahat and Pagar Alam.

As a part of the company commitment to support the implementation of green energy through utilization of geothermal energy for electricity generation, PT Supreme Energy Rantau Dedap has a strong intention to register the project under the UN Clean Development Mechanism (CDM) in order to increase the economic viability of the project from selling Carbon Emission Reductions (CERs) and receiving carbon revenues.

It is estimated that each of the geothermal power plant will generate at least 1,730,000 MWh of electricity per year. The project is a grid connected geothermal power plant which will supply electricity to the Sumatra grid. The current emission factor (“combined margin” in the UNFCCC terminology) of the Sumatra grid is 0.743 tCO2e/MWh. The project activity is therefore estimated to generate emission reductions equivalent to ~1,170,000 tCO2/year.

PT Supreme Energy Rantau Dedap has submitted project notification under the CDM scheme to the Indonesian National Council on Climate Change (NCCC) and to the United Nations Framework Convention on Climate Change (UNFCCC) in February 2011. It is expected the project will be registered with UNFCCC in 2012.

The project utilizes available heat under the surface of earth as a source for power generation and will utilize environmentally safe and sound technology available in the geothermal power generation sector. In addition, the projects will create employment opportunities during the construction and operation of the power plant. In this way the projects demonstrate environmental, social, economic and technological sustainability and contribute to sustainable development objectives of Indonesia.