TGE Apas Kiri Geothermal Plant

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Tawau Green Energy Sdn Bhd (TGE), was planning the development of the 30MW Apas Kiri geothermal plant, in the District of Tawau, Sabah. TGE was incorporated in the State of Sabah. Continental Energy (OTC:CPPXF) held a 10% equity stake in the company. Geological studies were conducted between December 2008 and January 2009 together with the Laboratory of Geothermal Energy, University of Indonesia. Maximum capacity was 67MW, on a depth of 2.5km. In November 2011, the developer received approval of a Renewable Energy Power Purchase Agreement (REPPA) from SESB. Under the PPA, the SESB offered a fixed tariff of MYR 0.21/kWh (US$c 7), for a period of 21 years. PT Pisga and Aktif FA served as consultants to the project. Chemsain Consultant conducted air test for methane gas. Land lease agreement was signed between Sabah Parks and TGE in August 2012. Stakeholder meetings were organized in October 2012. Commissioning was expected for early-2015. May 25th 2012, the project signed a Facilitation Fund Agreement under PPP concept with UKAS (the governmental PPP unit) and Bank Pembangunan Malaysia. The government provided a RM35 million (US$11.5 million) grant towards construction cost, to be disbursed by Bank Pembangunan Malaysia. The grant was exclusively to be used for constructing access roads and making related infrastructure improvements. The project has applied for UNFCCC CDM financing (282,400 metric tons CO2). Total cost was estimated at MYR419 million (US$136.7 million). http://www.tgepower.com/events4.html Investment Weekly News, Oil and Gas Companies: Continental Buys First Stake in Geothermal Energy Project, 26 May 2012. http://www.continentalenergy.com/pages/news.php?id=113