Marubeni wins EPC tender for geothermal project in West Java

Japanese firm Marubeni has won a tender for engineering, procurement and construction work on a geothermal plant in Patuha, West Java, the Jakarta Globe reported, citing an executive at state utility PT PLN.

?The winner [for the tender] is Marubeni. They will receive the letter of intent soon,? Murtaqi Syamsudin, the director of business and risk management at PLN said without disclosing the value of the contract.

The Patuha plant is owned by state company Geo Dipa Energy, a geothermal unit of the state utility PLN.

PLN will buy the electricity produced by the plant at 6.8 US$-cents per kilowatt hour. The government has set a maximum price for geothermal-generated electricity at 9.7 US$-cents per kilowatt hour.

This will be the first plant under Geo Dipa?s ownership.

The Patuha plant is part of the second phase of a project to add 10,000 megawatts of electricity to PLN?s capacity. About 40 percent of that target is expected to be sourced from geothermal energy. (*)