Sumitomo launches geothermal power plant in Indonesia’s Sumatra

18, Dec. 2019

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JAKARTA, NNA – Major Japanese trading house Sumitomo Corp. has launched a geothermal power plant on Sumatra Island in Indonesia amid the country’s push for natural energy.

The company said in a statement on Monday the power plant became operational in South Solok Regency, West Sumatra Province, with an 85,000-kilowatt output capacity, equivalent to the electricity consumption of 420,000 households on the island.

Sumitomo is undertaking the 70-billion-yen ($640 million) Muara Laboh Geothermal Power Plant project with local power producer PT Supreme Energy and French utility giant Engie S.A., and will supply electricity to state-owned utility PT PLN for 30 years, the statement said.

The Japanese company had teamed up with local partner PT Rekayasa Indusri and its wholly-owned subsidiary Sumitomo Corporation Power & Mobility Co. for construction of the plant in March 2017.

Japanese energy and power electronics maker Fuji Electric Co. provided geothermal steam turbines and power generators for the plant, Sumitomo said.

Sumitomo said that it intends to expand its geothermal power generation business in line with the Indonesian government’s target for 6 million kilowatts of the clean energy in 2028, up from 2 million kilowatts now.

The Southeast Asian country boasts the second-largest amount of potential geothermal power resources in the world, the Tokyo-based trading house said.

Sumitomo and the wholly owned subsidiary have so far supplied geothermal power generation facilities for 31 projects globally with an output capacity of over 2.5 million kilowatts. Indonesia accounts for 903,000 kilowatts of the total, according to the statement.