Next month Indonesia will start construction of the world biggest geothermal power station worth $1.6 billion and with the power of 330 MWt in Sarulla, the North Sumatra province, reported Jakarta Globe newspaper on May 31, 2014.
“The ceremony to lay foundation of the first stone will take place very son,” said Indonesian Minister of Economy Hairul Tanjung and added that the funding of the project has been guaranteed and construction will begin in June 2014.
He did not provide the details, but the project will be funded by the Asian Development Bank (ADB) and Japanese International Cooperation Bank through cooperation of Bank of Tokyo-Mitsubishi UFJ Ltd, ING Bank NV, Societe Generale, Sumitomo Mitsui Banking Corporation, Mizuho Bank Ltd and National Australia Bank.
A quarter of shares of the power station will be owned by Itochu Corporation and Kyushu Power Company, 37.5% to Indonesia Medco Power and 12.5% to Ormat Technologies Inc. the world leader in geothermal power.
Indonesia, the world fourth biggest nation on the globe, has between 500 and 600 volcanoes, of which 129 ones are active. Although the country has about 40% of world resources of underground heat suitable for use in energy (about 29 GWt), only insignificant part of this gigantic potential are used –seven of about 250 explored places for placement of these power stations are being used.
Four years ago Jakarta announced its intention to reduce oil consumption in the coming five years, thanks to accelerated development of geothermal power and has become the world leader in this field. However, Sarulla will become the first important practical step in this direction.
The first phase of this new project is expected to be completed in 2016 and the next two ones – during 1.5 years after that.