PLTU Karimun ready for construction

Integrated power solutions company PT Sumberdaya Sewatama (SS) announced on Thursday that its subsidiary, PT Karimun Power Plant (KPP), has been granted by the government the right to develop a coal-fired power plant on Karimun Island?s Zone II in Riau Islands Province.

KPP will first build a coal fired power plant (PLTU) with a capacity of 2x20 MW and the later expand its combined capacity to 120 MW, SS said in a statement.

The Operating Area License was issued by the Ministry of Energy and Mineral Resources on Oct. 31.

The firm will invest US$60 million to build the power plant, raised from internal funds and bank loans. It will use coal from North Sumatra as fuel for the power plant.

?We?ll use local coal and apply CFB (Circulating Fluidized Bed) boiler technology which is a boiler technology for power plant using low-calorie coal, but is efficient and environmentally friendly,? SS?s President Director N. Hasto Kristiyono said.

Karimun island and neighboring small islands along with Batam and Bintan islands have been designated as a free trade zone (FTZ) area by the government since 2009. However, power supply is still limited in Karimun, making investors reluctant to come. Power in the area is supplied by Karimun FTZ area covers 9,666 ha of lands in some parts of Karimun Island and the whole area of Karimun Anak island. Industries suitable for development in the area include shipyard, tourism and agriculture. At present, power supply is limited in the area, all from privately-owned diesel power plants. All industries in the Karimun FTZ area have indicated their interest to buy the power plant which KPP plans to build.

Karimun?s Zone II, over which KPP has exclusive right, covers 7,326 ha of lands or 75 percent of Karimun island.

?Lands for the site of PLTU Karimun have been prepared and coal supply has also been secured for the power plant, which is enough for 20 years even if the capacity of the power plant is later expanded to $120 MW,? Hasto said.

?KPP has secured the AMDAL environmental license and is now preparing construction, carrying out environmental study, measuring and preparing lands for the power plant project. We have acquired 27.5 ha of lands which are enough to house a 2x20 MW power plant, even a 120 MW power plant. We are ready to start construction in January 2015,? KPP?s President Director Elan Badral Fuadi said.

Editing by Johannes Simbolon