Located 40 km south of Bandung in West Java, the Wayang Windu power generation project is operated by Magma Nusantara Limited (MNL), a wholly owned subsidiary of Star Energy. It is managed under a Joint Operation Contract with Pertamina to develop geothermal resources within the 12,960 hectare contract area. An Energy Sales Agreement between MNL, Pertamina and PLN, a state owned utility company, gives Star Energy the exclusive right to develop up to 400 MW of electricity - generating capacity over a period of 42 years, with each generating unit being scheduled to operate for at least 30 years. The JOC has the potential to ultimately deliver more than the already-contracted 400 MW of base load electricity to power hungry West Java.

The first Unit (110 MW) at Wayang Windu was completed in 1999, and has been producing at full capacity (with an availability rate of over 98%) since 2000. At the time of its installation, Unit One was the largest geothermal turbine in the world.

In 2 March 2009, the Indonesian Minister of Energy and Resources officially opened Wayang Windu Unit 2, with generation capacity from a single turbine/ generator, of 117 MW. So, Wayang Windu is now delivering a total of 227 MW of electricity to its buyer, PLN, which dispatches the electricity into the West Java transmissions grid.

The potential for significant further expansion at Wayang Windu became apparent during the development drilling for Unit 2. Some of the wells drilled for Unit 2 tested more than 50 MWe of steam, and are producing sustainability at over 40 MWe, probably the largest sustainability steam production in the world for a single well.

Planning is now well advanced to expand Wayang Windu further, through the addition of a third Unit with generation capacity of 127 MW. Unit 3 should be onstream by mid-2013. In February 2010, Star Energy finalized a US$350 million bond issue, the proceeds from which will be used partly to fund he initial drilling and development work for Unit 3, with that worth due to commerce in the middle of 2010, using a drilling rig designed and built to Star Energy Geothermal specifications.

Truly, a world-class renewable energy facility, being operated to world class standards, Wayang Windu delivers real benefit to all Star Energy stakeholders.

GREEN POWER

Instrumental in the decision to invest in Unit 2 and Unit 3 at Wayang Windu is the potential revenue from CO2 emission credits that are generated by the project. Geothermal electricity generation, unlike coal or diesel or natural gas fired power, is virtually free of any green house gas emissions. This means that the project, when certified by the United Nations, can generate greenhouse gas "credits". These credits have a significant monetary value when they are traded in world markets, where they can be purchased by polluting industries to offset their own greenhouse gas emissions. In this way, Star Energy is making a significant contribution to a cleaner, greener future in which climate change will hopefully become a diminishing threat to the world.