Triaryani to build 600 MW power plant in South Sumatra

PT Triaryani will cooperate with four Japanese companies including Kobesteel, Nissho Iwai, Babcok Hitachi and Nippon Koei to build a steam power plant in Musi Rawas, South Sumatra, Bisnis Indonesia reported on Thursday.

Teddy Setiawan, Triyani's president director, said in Jakarta on Wednesday that the power plant which would have a generating capacity of 600 MW would be built in the company's coal mine area in Musi Rawas.

The power plant, which is called a mine mouth power plant, will use a low-calorie coal in a bid to reduce operating costs. "The power plant will later use an upgrading brown coal technology in order to minimize the pollution to be resulted from the use of the coal," he said.

According to Teddy, the construction works would be commenced in 2005 or 2006 while the commercial operation is expected to begin in 2009. The electricity will be sold to state owned electricity company PLN under Independent Power Purchase (IPP) agreement.

He said that Triaryani would offer a price of about US$0.042 to PLN which is quite lower compared to the prices of the electricity sold by other independent power producers to PLN. (*)