RNI to build hydropower plant

Monday, August 27 2012 - 01:38 AM WIB

State plantation company PT Rajawali Nusantara Indonesia (RNI) plans to expand into power generation business by building a hydropower plant in the company?s tea plantation area in Mitra Kerinci, West Sumatra.

RNI President Director Ismed Hasan Putro said in Jakarta on Sunday that the company was currently conducting a feasibility study to build a hydropower plant with a capacity of 15 megawatt in the company?s tea plantation in Mitra Kerinci.

?The ground-breaking will be carried out on October 28. The plant is expected to be able to begin operation in two years,? he said, adding that about 2 MW of the power supply would be used to support the company?s operation, and the remaining 13 MW to be sold to state electricity company PLN.

He said that RNI would spend up to Rp 350 billion to build the power plant. ?About 30 percent will come from internal sources, and the rest from bank loans,? he said..

Ismed said that RNI was also exploring the possibility of building a sugarcane-waste-fired power plant in the company?s sugarcane plantation in Subang, West Java. He said that the company planned to use the sugarcane waste from the company?s 5,000 hectares sugarcane plantation as the fuel for the power plant which would have a capacity of 15 MW.(*)

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