Navigat to build Surabaya waste power plant in May

By Edi Junaedi

PT Navigat Organic Energy Indonesia (NOEI) will start building a waste power plant project in Surabaya, having won the tender last year.

?We will start the construction in May,? Agus Santoso, NOEI President Director, told petromindo.com, adding that the construction would be divided into three phases at an estimated total cost of Rp300 billion.

?For the first phase, it may be able to generate 4 MW,? he said. The project is designed to generate a total of 12 MW.

The company is currently in talks to finalize a power purchasing agreement (PPA) with buyer state owned utility firm PT PLN, with price likely to be set at Rp820 per kWh.

In addition to proceeds from the sale of the electricity, NOEI is also entitled for a Rp119,000 per ton of fee from the Surabaya administration for managing 1000-2000 tons of waste per day.

Editing by Dadan Wijaksana