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Thursday, December 19, 2019

Indonesia: Sumitomo and Engie to Build 220 MW Geothermal Power Plant in Sumatra Starting 2023

Indonesia lures Sumitomo to its geothermal power sources (Nikkei)

Trading house joins with French energy company Engie in renewables projects

Japanese company Sumitomo Corp. has joined geothermal power projects in Indonesia designed to eventually generate 400 megawatts worth of electricity, a small step toward the trading house's long-range goal of deriving 30% of its total power output capacity from renewable sources.

If the projects go well, Sumitomo intends to use them as stepping stones into the geothermal power generation business in the Philippines and the U.S.

As the first of two joint projects in the nation, Sumitomo and its partners this month have begun operating the Muara Laboh geothermal power plant in the central part of Sumatra. The facility was built at a cost of 70 billion yen ($640 million). The 85 MW plant is capable of supplying electricity to 420,000 households. It is Sumitomo's first concession in geothermal power generation.

Sumitomo and Engie of France each own 35% of the plant, with Supreme Energy of Indonesia holding a 30% stake. Power will be supplied to PLN, the Indonesian state-owned electricity utility, at a fixed price for 30 years.

In 2023, Sumitomo will join Engie and other partners in building a geothermal plant capable of generating up to 220 MW in Rajabasa, at the southern tip of Sumatra. Plans are for the plant to begin operating in 2025.