French multinational company Alstom will be building a geothermal plant in Indonesia, helping supply the country with clean energy and reducing its greenhouse gas emissions.
The geothermal plant, which is a contract worth at around $69 million, was awarded to Alstom by PT Pertamina Geothermal Energy. Under the contract, Alstom will be supplying and installing a 30 megawatt geothermal plant for the Karaha Power Plant in West Java, Indonesia.
Alstom will be in charge of the geothermal plant’s design, supply, installation, and commissioning. The project is slated to be delivered by the end of 2016.
“The competitiveness of Alstom’s offer including quality, environment, health and safety, was key in the awarding of the contract. We are looking forward Alstom improving capability and effectiveness to manage the project,” said Rony Gunawan, chief executive officer of PT Pertamina Geothermal Energy.
“We are delighted to play a key role in helping Indonesia achieve its energy goals. This installation reinforces Alstom’s continued commitment to the geothermal markets and the importance of this renewable fuel source,” said Steven Moss, vice president in charge of Renewable Steam Plants at Alstom.
Geothermal potential of Indonesia
PT Pertamina Geothermal Energy is a subsidiary of state-owned oil and natural gas company Pertamina. They have been carrying out geothermal exploration and development activities since 2007; this includes nine geothermal projects supported by a $500 million loan from the World Bank (see related story) and the 330 MW Sarulla geothermal project in Northern Sumatra (see related story).
Indonesia has the world’s largest potential geothermal source, estimated at approximately 30,000 MW. However, recent figures show that the country is not harnessing the potential of geothermal energy, with the source contributing only 5 percent of its estimated capacity into the power mix.
The Indonesian authority, in line with its plan to reduce overall GHG emissions and leverage on its geothermal reserves, made the decision to fast-track the development of the country’s power industry and has signed numerous geothermal-related contracts in the last few years.
The Asian Development Bank recently noted the potential for geothermal power in Indonesia, providing a loan for up to $50 million to support geothermal exploration (see related story). – EcoSeed Staff