Vlocity mulls developing geothermal power plant from Sidoarjo mudflow

U.S. firm Vlocity Holding Inc. is reportedly planning to build a 2,000-Megawatt (MW)power plant using as fuel the heat coming from mudflow in Sidoarjo, East Java.

Vlocity CEO Taswin Tarib said the firm together with its consortium partners could invest US$5 billion in the project should the government agree with the plan, Kontan daily reported on Wednesday.

Houston-based Vlocity will provide the funds while the tehnology will be provided by Sirex PHS, Preston US and Turbo Jacks.

"Our plan looks feasible as the Sidoarjo mudflow temperature could reach 40 to 60 Celsius degree daily," he said.

The electricity from the mudflow would be later sold to state owne electricity firm PT Perusahaan Listrik Negara (PLN) at 2-3 euro cents per kilowatt hour, Taswin said.

The power plant could also create some 2,500 jobs for Indonesians, he said, adding that the plan had been presented to Vice President Jusuf Kalla.

Vice President special expert staff Alwi Hamu said the vice president had given a green light to conduct an analysis of the power plant proposal. (*)