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Sumitomo Corp on its role in geothermal development in Indonesia

Drilling Rig on site of the Muara Laboh geothermal project, Indonesia (source: Sumitomo Corp.)
Alexander Richter 22 Nov 2018

Japanese trading company and EPC contractor, Sumitomo Corp. has been an active player in geothermal development in Indonesia having worked on 11 geothermal projects, among them Lahendong and Ulubelu.

Japanese trading and EPC contractor Sumitomo Corp. provide great overview on its work on geothermal energy projects in Indonesia on its website. The article also shows some great pictures from the projects the company has worked on.

There are two major business models for power generation infrastructure development. The engineering, procurement and construction (EPC) business involves undertaking these tasks on a contract basis to create a power station. The consigned business is fulfilled when the power generation facility are completed and delivered to the client. In contrast to this is the independent power producer (IPP) business, in which an entity becomes the owner of a power generation facility, selling electricity to utilities and end users on an ongoing basis after completion of the power generation facility.

In 1995, Sumitomo Corporation launched geothermal power generation in Indonesia, home to the world’s second largest amount of geothermal resources. In 1997, Sumitomo Corporation received its first EPC order for a geothermal power station in Indonesia. Since then, the Company has been involved in a total of 11 geothermal projects. They account for about half of the country’s geothermal power stations and outnumber all other Japanese integrated trading and business investment companies.

The company’s success with numerous geothermal EPC projects has been built on the productive partnerships it has forged, so the article. Sumitomo’s partners include Fuji Electric Co., Ltd. the world’s leading manufacturer of steam turbines for geothermal power stations, and an Indonesian company PT. Rekayasa Industri, which take charge of civil construction, installation and local procurement. Among the recent geothermal EPC projects are the Lahendong power station in north Sulawesi and the Ulubelu power station in south Sumatra.

For more see link below.

Source: Sumitomo