KS ORKA Renewables Pte. Ltd. signed the Share Purchase Agreement with Mr. Mehmet Emin Hitay to acquire 100% of the Shares of Inter Investment Pte. Ltd., subject to fulfillment of the Condition Precedents of the Closing with a total transaction Price of $60,000,000.
Inter Investment Pte. Ltd. holds 7 geothermal concessions in Indonesia via different Project Companies. The picture shows the location of the Projects.
Per Hitay and third-party independent evaluation of the Projects, the Portfolio consists of top geothermal greenfield high temperature and binary systems, with a resource potential at 990 MW. The Projects were awarded to the Hitay Group through its Preliminary Survey (PSP) in 2013 to 2017. Currently Inter Investment Pte. Ltd. owns 4 PSP+E (Preliminary Survey + Exploration) Licenses, 1 IPB (Geothermal Development License) and 2 PSP+E Licenses under application. The Projects are included in Indonesia's 2021-2030 Supply Business Plan (RUPTL).
Based on the Share Purchase Agreement, after the Closing, KS Orka will need to replace the existing Standby Letter of Credits (totaling $2,500,000) that the Project Companies had issued to EBTKE of the Ministry of Energy, to enable the security deposits to be returned to Hitay. Upon successful commercial commissioning of the Projects, KS Orka will also pay Hitay additional bonuses based on the tariff and size of the Unit(s) that the Power Purchase Agreements will specify. KS Orka is committed to becoming a sustainable contributor to the greener energy mix as stipulated by RUPTL 2021-2030's targeting an additional 3,355 MW geothermal installed capacity. This acquisition will further expand KS Orka footprint in the country, building the long-term pipeline to execute its incremental development methodology after the Sorik Marapi and Sokoria (in operation and/or development). After the Closing, KS Orka plans to start exploration and infrastructure facilities in some of the Projects.
KS Orka Renewables Pte. Ltd. is a subsidiary of Kaishan Group Co., Ltd., the manufacturer and supplier of the power generation facilities of KS Orka. Kaishan's patented modular power plant units (steam screw expander, ORC screw expander, ORC turbine expander) are well-adapted to different types of heat sources, offering the tailor-designed and optimum power-generation solution with the best-practice efficiency and reliability, with existing applications in Indonesia (Sumatra and Flores), US (Nevada), Turkey and Hungary.
