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Supreme Energy develop 2nd phase of Muara Laboh geothermal plant

JAKARTA (RambuEnergy.com) – PT Supreme Energy Muara Laboh (SEML) consortium is planning to develop second phase of Muara Laboh geothermal power plant with larger capacity of 140 MW, once the first phase of the project is completed, a company official said.

Currently, SEML is developing first phase of Muara Laboh geothermal plant (PLTP) with capacity of 80 MW, located in South Solok, West Sumatera.

President Director of Supreme Energy Muara laboh Supramu Santosa said the first phase exploitation is projected to be completed in 2019. Once this is completed, SEML will carry on drilling second phase, he was quoted by Bisnis Indonesia daily as saying.

The first phase of the power plant (PLTP Muara Laboh Unit 1) with capacity of 80 MW is scheduled to start commercial operation and delivering electricity to the state electricity company PLN in August 2019.

Initially, the developer plants to develop 220 MW of geothermal plant, however, the steam produced by the wells is far below expectation.

The consortium was reported to have spent US$150 million so far. Ismoyo Argo, senior manager Business Relation of SEML said the drilling on its 140 hectares of working area (WKP) will last for 30 month since March this year.

The geothermal project, located in Solok Selatan region in West Sumatera province, is carried out by a joint venture firm PT Supreme Energy Muara Laboh. Supreme Energy is partnering with Engie of Franch and Sumitomo Corproration.

The consortium was awarded the tender for the 220 MW Muara Laboh geothermal project concession in 2010. The power plant is expected to lightup 120,000 households.

Recently, the company has signed financing closing agreement worth US$440 million 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.

With construction expected to commence this year, the project will provide employment opportunities to 1,200 people and support local businesses during the 30-month construction period, ENGI said in a statement.

Indonesia has around 40% 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% 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. (*)

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