Sumitomo gets contract from Pertamina Geothermal Energy

Wednesday, August 13 2014 - 03:43 PM WIB

By Romel S. Gurky

Japanese firm Sumitomo Corporation announced on Wednesday it has been awarded an EPC contract by PT Pertamina Geothermal Energy (PGE), a subsidiary of state owned oil and gas firm PT Pertmina for the construction of Units 3 and 4, each with the capacity of 55 MW of the Ulubelu geothermal plant.

The power generation units will be constructed by Suimotomo and PT Rekayasa Industri (Rekind) adjacent to the Unit 1 and 2 (each with the capacity of 55 MW) of the power plant in Ulubelu district, western part of Lampung Province. The Unit 1 and 2 were completed by Sumitomo Corporation in 2012.

The primary equipment?the geothermal steam turbines and the power generators?will be manufactured by Fuji Electric Co., Ltd., which has high-level technical capabilities and a wealth of experience in geothermal power generation facilities, while construction/installation of the Units and steamfield above ground system will be the responsibility of Rekayasa. Unit 3 will take 23 months and Unit 4 will take 33 months to build, so construction should be completed by July 2016 and May 2017 respectively. Funding for this project will be covered with a loan from the World Bank.

Sumitomo has joined with its partners Fuji Electric Co., Ltd., and Rekind in focusing on geothermal power generation projects in Indonesia. This latest contract is the tenth undertaking for a geothermal power generation project in Indonesia, the previous one being undertook in August 2013 for Unit 5 (35 MW x 1 unit) at Pertamina?s Kamojang Geothermal Area.

Indonesia has the world?s largest resources of geothermal energy and its potential geothermal capacity is estimated to be 29,000 MW. However, presently only about 1,340 MW, or 5% of that potential is used for power generation. Under these circumstances, the Indonesian government is planning new projects to increase geothermal power generation by about 9,500 MW by 2025. The construction of the Units at Ulubelu, which will be operated by PGE, is one such project.

Sumitomo has been engaged in the construction and delivery of geothermal power stations in Indonesia, New Zealand, the Philippines, Iceland, Turkey, and other countries, and their total combined capacity reaches nearly 2,300 MW. This is equivalent to approximately 20% of the total capacity of geothermal power stations currently in operation around the world.

In Indonesia, the units will increase the total capacity of the projects that Sumitomo has been involved in to almost 800 MW, accounting for more than 50% of geothermal power generation from facilities that exist or are under construction in the country.

Based on its proven track record and experience in this business, Sumitomo, in close collaboration with its partners, will make further efforts to win contracts for geothermal power generation projects in Indonesia and other countries, to support environmentally-friendly energy infrastructure development around the world.

Editing by Johannes Simbolon

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