Pupuk Energi begins construction of cogeneration power plant

PT Pupuk Indonesia Energi, a subsidiary of state-owned fertilizer holding company PT Pupuk Indonesia, has started construction of a 22 MW gas cogeneration power plant in Gresik, East Java, with a ground breaking ceremony held on Saturday, Investor Daily reported on Tuesday.

Investor Daily quoted Pupuk Indonesia President Director Aas Asikin Idat as saying that the US$47 million cogeneration power plant, which is projected to be completed in September of 2017, will also produce 160 tons per hour of steam to be utilized at a nearby urea ammonia plant being developed by another subsidiary PT Petrokimia Gresik.

He said that the company is developing the plant to anticipate rising electricity requirement as it aims build new fertilizer plants to help ensure supply at home as the country strives to achieve food security.

IDX-listed engineering and construction company PT Pembangunan Perumahan Tbk has been appointed as contractor to develop the power plant project.

Pupuk Energi President Director Tentaminarto said the company also plans to build a coal-fired power plant at PT Pupuk Iskandar Muda complex in Aceh in the near future. The project has entered tender stage to select the contractor, hoping that construction is expected to start end of this year so that it could be completed in the second semester of 2019. (*)