Japan-Indonesia Consortium Wins $4 Billion Java Coal Power Plant Project
Dow Jones, Tokyo - 07/10/2011
Electric Power Development Co. (9513.TO), Itochu Corp. (8001.TO) and PT Adaro Energy (ADRO.JK) said Friday that they have signed an agreement with Indonesia's state-owned electricity company, PT. Perusahaan Listrik Negara, under which the three firms will build a coal-fired power plant with capacity of two gigawatts in Central Java province and supply electricity to PLN for 25 years.
The total project cost is approximately $4 billion, the Japanese-Indonesian consortium said in a statement.
The engineering, procurement and construction contractor that will soon be appointed will use Japanese technology, and construction is expected to begin next October with commercial operations starting in late 2016, they said.
The consortium gained exclusive negotiating right for the power plant project in June.
This will be Indonesia's first ultra-super-critical coal-fired power plant. Ultra-super-critical plants typically produce 7% less carbon dioxide than the subcritical plants that are widely used in Indonesia, so the project will likely help Indonesia curb its CO2 emissions.
The consortium plans to produce electricity using sub-bituminous coal, which is abundant in Indonesia but can't be exported at high prices due to its relatively high water content.