Terra Energy Resources (TER) announced it is in negotiations with Jala Tekno Geothermal (JTG), a subsidiary of Pandawa Energy, for geothermal development on the island of Java, in Indonesia. JTG has successfully drilled a steam production well, capped at the moment, with an evaluation at more than 6 MW of potential. The field where the well is located is estimated to hold anywhere between 75 MW and 150 MW of potential geothermal capacity.

Geothermal hotspots in Indonesia.

Pandawa Energy is currently developing two locations on Java, and three more on other Indonesian islands, all totalling in an estimated 1000 MW of capacity. The company has received several expressions of interest from American and European geothermal companies for upstream and downstream financing, and operational and technical expertise for its geothermal projects.

Indonesia is probably the world's "hottest" geothermal development region, with an estimated 27 GW of geothermal capacity that could be harnessed in theory. So far, only about 1100 MW have been tapped, although there are ongoing developments that will increase this amount in the near future.

[source: Terra Energy Resources, image: Pandawa Energy]