Marubeni and Toshiba Positioning for Slice of 10,000 Megawatt Indonesian Geothermal Build

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Geothermal energy project potential is being studied by countries worldwide as a clean, renewable energy source that can contribute a significant margin to the base load power mix. As the interest and applied technology develops further as more projects are launched, the parameters by which geothermal power potential is defined could be widened, and the resource could assume an even greater potential for power generation.

Indonesia holds some of the world's largest geothermal energy reserves, which are currently rated as having the potential to generate 28,000 megawatts (MW) of power. The country currently has a little more than 1,100 MW of installed geothermal generating capacity. With demand for electrical power rising parallel to economic growth, the government is promoting geothermal power projects and reducing the reliance on oil-based products, for which demand outstripped local production in 2004.

The government is planning to have geothermal projects from independent power producers totaling 10,000 MW by 2025. In this drive for geothermal power, the Japanese government is lending support through its loan program.

Marubeni Corporation and Toshiba Corporation have announced that they will cooperate in the construction of the 55-MW Pathua Unit 1 project in West Java. Marubeni will be the main contractor and manage the project under a full turnkey contract awarded by PT Geo Dipa Energi, the plant owner and operator. Toshiba will supply the plant's essential equipment, including the steam turbine and generator and key auxiliary and management equipment. Funding for the project is coming from state-owned PT Bank Negara Indonesia (Persero) Tbk.

The plant is sited in the suburbs of Bandung, the capital of West Java, Idonesia's third-largest city with a population of 7.5 million people. Equipment delivery is scheduled for 2013, with commercial operations starting in 2014.

Toshiba has supplied 52 turbine units worldwide for geothermal projects to date and has an installed capacity of 2,800 MW, and hydroelectric turbines for 11 projects with a combined capacity of 1,500 MW.

Marubeni is also well established in the local power market with thermal and combined cycle plants and has overseen the construction of Indonesian power projects with a total generating capacity of 6,000 MW.

The two Japanese companies are planning to work together on geothermal projects now at the planning stage, which include Lumut Balai units 1 and 2 and 3 and 4; Ulubeluy units 3 and 4; Lahendoing units 5 and 6; and Rantau Dedap units 1 and 2.

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