ENGIE builds Indonesias first Geothermal Power Generation Plant
With construction expected to commence this year in the Solok Selatan region in West Sumatra province, the project will provide employment opportunities to 1,200 people and support local businesses during the 30-month construction period.
Indonesia has around 40 percent of the world’s geothermal reserves, estimated at 28,000 MW, making it an important resource for the country to achieve its commitments to reduce carbon emissions by 29 percent by 2030.
Geothermal energy is a renewable, non-intermittent and eco-friendly source of energy that is both efficient and economical, using the heat coming from deep underground either for heat, power generation or even air-conditioning. ENGIE is a leading producer and supplier in Europe of geothermal energy for heating and cooling of residential or commercial facilities, using various sources from deep hot aquifers to marine geothermal, through shallow geothermal coupled with underground thermal energy storage.
Jan Flachet, chief executive cfficer, ENGIE Asia-Pacific said: “With 40 percent of the world’s geothermal reserves in Indonesia, the potential of this energy source is tremendous. Our partnership in the Muara Laboh geothermal project is fully in line with our Group’s strategy to be a leader of the energy transition in the world, notably focusing on renewable energies.”
ENGIE is part of the PT Supreme Energy Muara Laboh with the Japanese trading and investment company Sumitomo Corporation and the Indonesian geothermal power developer, PT Supreme Energy. The consortium was awarded the tender for the 220 MW Muara Laboh geothermal project concession in 2010.
The US$ 440 Million financing agreement was signed by PT Supreme Energy Muara Laboh consortium with the Japan Bank for International Cooperation, the Asian Development Bank and a set of commercial banks under a guarantee from Nippon Export and Investment Insurance, to support clean energy development in Indonesia.
ENGIE has been present in Indonesia for over 60 years. Muara Laboh is the first renewable project of the Group in the country. The Group employees are committed to contributing to the sustainable development of one of the world’s fastest-growing economies, through increasing energy supply with natural gas and renewable power (geothermal, solar, biogas), as well as improving energy efficiency and providing solutions to the challenges of rapid urbanization.
