Batang power plant to get coal supply from Adaro, KPC

By Thomas Sembiring

The planned 2x1,000 MW PLTU Batang coal-fired power plant in Central Java will require about 8 million tons per year of coal once it starts operation, according to a senior official.

Mohammad Effendi, President Director of PT Bimasena Power Indonesia (BPI), a consortium which will develop the giant power plant, said to Petromindo.com Thursday that IDX-listed coal giant PT Adaro Energy Tbk will supply about 5 million tons per year, while another coal giant PT Kaltim Prima Coal will supply the remaining 3 million tons per year.

He said that BPI will sign five-year contracts with the two coal suppliers.

Financial closure for the long-stalled power plant project was signed on Thursday, paving the way for BPI to start construction process, which is expected by President Joko Widodo to be completed in 2019.

Effendi said that once in operation, the estimated US$4.2 billion Batang power plant will obtain about $80 million in revenue per month by selling about 1,800 MW of electricity to state-owned power firm PT PLN under a 25-year contract.

Editing by Reiner Simanjuntak