FEASIBILITY STUDY

NewQuest Geotechnology offers feasibility study services for a geothermal prospect area. The feasibility study was carried out thoroughly from all related aspects, from technical, financial, and social impacts.

Resource Assessment

The integrated evaluation based on a 3G result will be used to develop a conceptual model of geothermal system which include heat source indication, hydrogeology (upflow-outflow), inferred subsurface temperature distribution as well as reservoir geometry indication. Potential capacity is then estimated by considering the prospect area, reservoir depth, and temperature. The technical aspects should be added and confirmed to reduce the exploration risks.

Engineering Design

Deciding on the appropriate engineering design to utilize a resource to generate electricity requires the work of a team incorporating geologists, geochemists, geophysicists, and engineers. Selecting proper technology applied for certain reservoir and environmental conditions as well as resource development strategy becomes one of the most important recommendations to be provided. Our engineers, consisting of electrical, civil, and mechanical engineers, are ready to support providing several services for the following designs:

• Power station

The power station houses the machinery components to generate electricity. Details of turbines, condensers, and ancillary equipment for geothermal steam power stations are provided.

• Steam field

The steam field facilitates to delivery of the two-phase discharge from production wells to separators, then continued piped to the power station and separated water to the injection wells. Level of attention paid to thermodynamic efficiency, since the pipes may be several kilometers long. Thermal insulation and minimizing pressure drop in the pipelines are the primary concern in steam field design.

• Infrastructure

Some related components associated with civil works are also covered.

Environmental Impact Assessment

The study of environmental impact is on the list of items to be performed in geothermal field development and necessarily involves scientists and engineers but from a different point of view. Frequently asked questions by the community regarding geothermal development, such as effects on the geothermal surface manifestations, groundwater, and air quality, possible induced seismicity, and ground subsidence, are subjects to be assessed. In addition, the potential social impact should also be investigated before everything starts. Our experts are ready to support providing several services, including preparing the following documents:

• Environmental and Social Impact Assessment (ESIA)

For the exploration phase, an ESIA is carried out in compliance with the World Bank Safeguard Policies. The process covers identifying, predicting, evaluating, and mitigating the biophysical, social, and other relevant effects of development proposals before major decisions are taken and commitments are made.

• Land Acquisition and Resettlement Action Plan (LARAP)

The scope and level of detail of the resettlement plan vary with the magnitude and complexity of community conditions. The document covers potential impacts, assessment of the project affected persons, legal analysis, assessment of assets and compensation, cost and budget estimation, implementation schedule, and monitoring.

Financial Evaluation

Economic calculation is the main subject that has to be concerned after resource evaluation. Many aspects are calculated to provide whether a geothermal prospect area is promising to be developed. Once a plant is operating it can generate electricity for 25 years or longer if the field is engineered and maintained sustainably. Some aspects will be calculated such as financial evaluation and operating revenue. While sensitivity analysis is also calculated to provide some parameters that affect geothermal projects. All these parameters are following the regulation from the government including the unit price that may be different in the Indonesia area.

Financial evaluation could be assessed using project cash flow which includes capital expenditure cost, operating revenues, and operating expenses. The operating expense includes maintenance cost, make-up well drilling, overhaul, depreciation, and income tax.

Operating revenue includes revenue from power sales, right of exploration/exploitation, production royalty, and production bonus. Operating expenses include fixed and variable maintenance costs, make-up well drilling, and overhauls as well as depreciation and income tax.

Sensitivity analysis is carried out on several parameters that affect the value of the project (in the form of NPV) with a Low and High parameter values.

DUE DILIGENCE

Before starting a geothermal power plant project, due diligence should be performed. NQ offers due diligence that provides an updated evaluation of alternatives in every related discipline and phase of project development from our expert review. With due diligence by NQ, the reliability of developing a geothermal area becomes clearer, reducing the level of risk for developers and investors.

Our services include but are not limited to:

• Resources estimation, size, and capacity of resources review.

• Well, assessments include future makeup well and cost projections.

• Steam field and power plant condition assessment.

• Risk identification

• Environmental Impact Assessment & environmental management.

• Project scheduling & projected CAPEX and OPEX.

• Community and social issues.

• Preparation of all technical and cost information for input into the financial model.

• Review of permits and regulatory requirements.