Semen Indonesia ties up with Japanes firm to build WHRPG
Wednesday, July 16 2014 - 12:42 AM WIB
IDX-listed state owned cement firm PT Semen Indonesia announced on Tuesday it has signed an agreement with Japanese firm JFE Engineering to jointly build a waste gas power plant, known in the industry as Waste Heat Recovery Power Generation (WHRPG) with a capacity of 30.6 MW at the firm?s plant in Tuban, East Java.
The agreement was signed by Semen Indonesia?s President Director Dwi Soetjipto and JFE?s Managing Director Tetsuo Tsuyuguchi at Semen Indonesia?s office in Jakarta on Tuesday.
The deal was signed to follow up the Memorandum of Understanding (MOU) signed on March 25, 2013 at JFE?s office in Tokyo. JFE is the representative of Japan?s Ministry of Environment for Joint Crediting Mechanism (JCM) aimed to reduce carbon emission.
The project is estimated to cost Rp 638 billion and the construction is estimated to take 24 months from the start of engineering activities through the end of commissioning. The power plant is projected to start operation in the second semester of 2016. The local content of the project will reach 52 percent with the 48 percent imported content to be supplied by JFE.
The project will contribute to the reduction of CO2 as much as 122,358 tons per year. The Japanese government is strongly committed to supporting the project through the JCM program, according to Semen Indonesia.
?We expect to receive financial supports amounting to 20 percent of the total investment for the CO2 emission reduction project,? Dwi said.
The WHRPG, once completed, will reduce Semen Indonesia?s consumption of power from state owned electricity firm PT Perusahaan Listrik Negara by 152 million kWh per year. This will allow the firm to save its electricity bill by Rp 120 billion per year.
The environmentally-friendly power plant will be the second to be owned by Semen Indonesia. The firm has built a power plant with a similar environmentally-friendly technology in its plant in Indarung, West Sumatra with a capacity of 8.5 MW. The power plant started operation in 2011.
Editing by Johannes Simbolon