Kyushu Electric acquires 25% of Sarulla geothermal project from Medco

Japanese firm Kyushu Electric Power Co Inc said on Tuesday it had acquired a 25 percent stake in Sarulla geothermal power project in North Sumatra from JSX-listed energy firm PT Medco Energi Internasional Tbk.

 

Kyushu did not disclose the price.

 

Medco’s CEO Hilmi Panigoro said in May 2007 that Kyushu would buy part of Medco’s 62.25 percent shares in the project.

 

Medco-led consortium which include Japan’s Itochu Corp (25 percent) and American firm Ormat Technologies Inc. (12.75 percent) has been chosen by state electricity firm PT PLN to build and operate the proposed 340-MW plant at the cost of US$600 million.

 

The Sarulla geothermal project will be constructed over the next five years in 3 phases of 110 to 120 MW each. The first power generating unit is expected to be operating within 30 months after the financial closing, while the remaining two units are scheduled to commence operation over a period of 18 months following the first unit. The power to be delivered to the project will serve as the base load of PLN’s North Sumatra dan Aceh grid system. Under the planned 30-year contract, the price of the power from the power plant is 4.64 U.S. cent per kilowatt hour. (*)