(Yicai Global) Jan. 26 -- Shares of Kaishan Compressor, a Chinese company that is developing a number of geothermal power projects overseas, plunged after a hydrogen sulfide leak at one such project in Indonesia killed and injured villagers.

The Zhejiang province-based company’s shares [SHE: 300257] closed 7.6 percent lower today at CNY14.40 (USD2.23) apiece, after earlier slumping as much as 16 percent.

The gas leak happened when employees of Kaishan’s Indonesian unit Sorik Marapi Geothermal Power were commissioning a geothermal well yesterday, resulting in the death of five people in a nearby village, its parent company said in a statement this morning. Nearly 20 villagers have been hospitalized.

Kaishan Compressor did not mention whether any employees were hurt, nor did it give any figures for possible economic losses.

The subsidiary is cooperating with agencies under Indonesia’s energy ministry and the local government to investigate the cause of the accident, and all on-site operations have been suspended until the cause is identified, the statement added.

Kaishan is working to transform itself from a large compressor equipment maker into a green energy firm. It is operating or has contracted to build geothermal projects in several countries, including the United States, Hungary and Kenya.

Editor: Peter Thomas