Japanese and French firms to develop geothermal energy

Two companies from Japan and France will team up to build a geothermal power plant in Liki Pinang, Solok regency in West Sumatra with initial investment of US$720 million, Bisnis Indonesia reported on Wednesday.

Marzuki Mahdi, the head of the mining office of the West Sumatra provincial administration, said the two foreign companies would cooperate with local firm PT Supreme Energy to build and operate the geothermal power plant.

?At present the project is still at exploration stage,? he said in Padang, adding that the investors expected to build a power plant with a capacity of 480 MW. He hoped that the power plant which would be located between Muara Labuh and Padang Aro at the hill of Mt Kerinci would begin operation in 2014.

The province?s mining office has found geothermal reserves in 17 locations in West Sumatra. Their total reserves could reach 1,656 megawatt.(*)