Expansion of Muara Laboh geothermal plant project in W Sumatra gets ADB Fund

The expansion of Muara Laboh Geothermal Power Plant project involves almost doubling the project’s existing power generation capacity of around 85 megawatts with an additional 83 megawatts.

 

Jakarta (Indonesia Window) – The expansion of Muara Laboh geothermal power plant project in West Sumatra has received financing from the Asian Development Bank (ADB) and a number of Japanese financial institutions, including the Japan Bank for International Cooperation (JBIC), Mizuho Bank, Ltd., Ltd., Sumitomo Mitsui Banking Corporation, MUFG Bank, Ltd., and The Hyakugo Bank, Ltd.

In addition, the financing also includes loans from private Japanese financial institutions that will be insured by Nippon Export and Investment Insurance (NEXI), according to a press release from INPEX CORPORATION (INPEX) quoted here on Wednesday.

INPEX announced on Tuesday (Jan. 14) that the company and its partners have reached a final investment decision (FID) for the expansion of the Muara Laboh geothermal power plant project.

INPEX owns a stake in PT Supreme Energy Muara Laboh (SEML), the owner of the geothermal land and the project’s business license, through INPEX GEOTHERMAL, LTD. (INPEX Geothermal), a subsidiary dedicated to INPEX’s geothermal business.

Other investors in SEML include Sumitomo Corporation and PT Supreme Energy, a private Indonesian geothermal power plant developer.

The project expansion involves nearly doubling the project’s existing power generation capacity of approximately 85 megawatts with an additional approximately 83 megawatts. The electricity generated will be marketed to PT PLN (Persero) until 2052.

INPEX seeks to enhance and push its renewable energy initiatives, which are among the five net zero businesses outlined in the company’s ‘INPEX Vision @2022’ announced in February 2022.

According to the statement, INPEX will accelerate its geothermal power generation business initiatives, which can leverage the technology developed by the company through oil and natural gas development.

INPEX will proactively engage in the reconstruction of Indonesia’s energy landscape to help realize a zero-carbon society while fulfilling its responsibility for stable energy development and supply.

Reporting by Indonesia Window