GET Group AB (publ) signs agreement to enter into the Indonesian geothermal market
GET Group AB (publ) ('GET Group' or 'the Company') has entered into an agreement which allows GET Group to acquire Modular Geothermal Power PTE Ltd ('MGP'), a Singapore and Indonesia based company controlled by a team with strong experience in design, engineering, delivery, and construction of geothermal power plants, having successfully deployed 15 modular power plants producing more than 80MW of power, with specific experience in scalable geothermal modular power plants.
GET Group finds the combination of the sub-surface solutions provided by its existing portfolio company Rock Energy and MGP’s on-surface solutions a highly attractive combination and a natural step for the group in its strategic development to become a leading group in geothermal energy.
MGP is a geothermal development company with strong experience in delivering turn-key geothermal power plant solutions from wellhead to transmission line connection and has access to a number of financially highly attractive projects in Indonesia.
Indonesia is the largest economy in the Association of Southeast Asian Nations (‘ASEAN’), which represents 640 million consumers, and is a key growth market in the geothermal industry. Indonesia is already the world’s second largest producer of geothermal power and possess over 40% of the world’s geothermal reserves. Indonesia’s geothermal power potential is the largest in the world. Presently, installed geothermal generation capacity is less than 10% of that potential.
MGP and it’s subsidiary in Indonesia is engaged in developing geothermal power projects by applying the group’s own scalable geothermal modular power plant solutions to the Indonesian market.
GET Group believe that production of geothermal energy in Indonesia is a high margin market opportunity not to be missed. Entering into the ASEAN market for geothermal industry is a strategic move by GET Group, as it will diversify GET Group's geothermal business and is expected to provide attractive returns.
The agreement with MGP is structured as an acquisition by way of a share swap of all issued shares in MGP, in exchange for GET Group issuing 12.5% new shares in GET Group.
The transaction is subject to a satisfactory due diligence of MGP and entering into a final share purchase agreement. The acquisition opportunity is in line with the Company's strategy to control 3-5 unique ESG-tech companies by 2025.
Summary of the acquisition opportunity of MGP:
- MGP is controlling unique scalable geothermal modular plant solutions for the Indonesian market, the world’s largest geothermal market possessing over 40% of the world’s geothermal resources;
- MGP is applying its scalable geothermal modular plant solutions to its own geothermal projects for production of geothermal power, by entering into long-term off-take agreements with Indonesian utilities;
- The scalability of the modular solutions provided by MGP is allowing for large-scale geothermal concessions to be developed in stages, generating early revenue and cash flow which subsequently reduce the need for equity and significantly increase the projects profitability whilst reducing the projects risk. MGP’s solutions have a smaller land footprint than traditionally large scale solutions as the need for environmentally intrusive complex steam pipe gathering systems are eliminated.
The information was submitted, through the agency of the below contact person, for publication on 06 December 2021, 08:00 CET.
For further information, please contact:
Lars Christian Beitnes, CEO
Telephone: +46 8 1220 4146
E-mail: lars.beitnes@getgroup.se
Investor Relations: ir@getgroup.se
About GET Group:
GET Group AB (publ) (ticker symbol: GETG) is an investment company focused on energy and sustainability. We are creating the world’s most compelling listed ESG company, by owning and financing the unique technology companies that are committed to energy production and energy saving. Our mission is to actively contribute to the world’s transition to sustainable energy.
GET Group AB (publ), c/o Mcon AB, Södra Larmgatan 4, SE-411 16 Gothenburg
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