The turnkey contract for the development of the power plant in the Indonesian province of South Sumatra will be conducted with Mitsubishi Corporation, Chinese construction company SEPCO III Electric Power Construction Co., Ltd. (SEPCO III), and local major civil engineering and construction firm PT Wijaya Karya (Persero) Tbk. Commercial operations are scheduled to begin in 2024.
The development site for the Lumut Balai II geothermal power plant is about 290km southwest of the city of Palembang in the southern region of Sumatra, at an elevation of approximately 1,000 meters. The project aims to mitigate the effects of climate change and contribute to the Indonesian government's target for 23% of the country's power supply to be derived from renewable energy sources by 2025. PGE has a received a yen loan (official development assistance) from the Japan International Cooperation Agency (JICA) to conduct this project.
Mitsubishi Power will be in charge of the basic design of the geothermal power generation facilities, and will supply the steam turbine, generator and other main accessory equipment. Utilizing its technical expertise and knowledge gained from its decades of experience as an EPC contractor, Mitsubishi Power will also dispatch engineers to provide guidance for installation and trial operation.
Commenting on the contract, Kazuki Ishikura, President Director of MHI Group local subsidiary PT. Mitsubishi Power Indonesia, said: "Indonesia has the world's second-largest geothermal potential, and we are honored to have a hand in supporting power plants across Indonesia that leverage this massive potential - from the Darajat geothermal power plants in West Java, Kamojang geothermal power plant in Bandung and now, the Lumut Balai II geothermal power plant. It is our honor to be selected as a trusted partner for Pertamina Geothermal Energy to deliver secure and sustainable power to millions across the nation, and realize Indonesia's renewable energy targets."
Electric power demand in the country began to rise with the resumption of economic activity since the COVID-19 pandemic, and PGE is concentrating its efforts on building new geothermal power plants and increasing output. Mitsubishi Power has supplied a total of six systems for geothermal power plants in Indonesia, with a combined output of around 400 MW. This contract reflects the high regard held for Mitsubishi Power's operational experience, technical capabilities, and EPC coordination ability.
Mitsubishi Power provides comprehensive solutions for thermal and geothermal power systems - engaging in design, manufacturing and construction of plants in an integrated manner to ensure they produce the maximum output. It is an industry leader in geothermal power generation, offering systems ranging in output from 100 kW to 160 MW. Having supplied over 100 units of geothermal steam turbines with a total plant capacity of 3,200 MW across 13 countries worldwide, including Indonesia, the company also has one of the world's largest geothermal power generation facility capacity.
Going forward, Mitsubishi Power will continue to actively pursue projects for geothermal power generation equipment and facilities in markets worldwide, and accelerate the decarbonization of energy towards a net zero future.