Indonesia – 85 MW Muara Laboh geothermal plant starts commercial operation

Muara Laboh geothermal power plant, West Sumatra (source: PT Supreme Energy/ ENGIE)
Alexander Richter 16 Dec 2019

PT Supreme Energy has started commercial operation of the 85 MW Phase 1 Muara Laboh geothermal power plant in West Sumatra. The project is a joint venture of PT Supreme Energy, Engie and Sumitomo.

As reported this morning from Indonesia, PT Supreme Energy Muara Laboh has officially started commercial operation of the 85 MW Phase-1 Geothermal Power Plant (PLTP) Muara Laboh, located in Solok Selatan Regency, West Sumatra Province.

The power plant has a capacity of 85 MW. The electricity generated will be distributed to the Sumatra electricity network owned by PT PLN (Persero) which can be distributed to approximately 340,000 households.

PT Supreme Energy’s Founder & Chairman Supramu said that the operation of the Muara Laboh PLTP Phase-1 and Phase-2 development plan is a commitment from the company and partners towards geothermal development in Indonesia. This is also the company’s support for the Government of Indonesia in achieving its energy mix target by 2025.

“We greatly appreciate the strong and continuous support from the government, PLN, and the people of South Solok in particular, during exploration and development activities,” Supramu said based in written statements

Supreme Energy began a preliminary study in the Muara Laboh PLTP development project in 2008. Then, the Power Purchase Agreement (PPA) was signed in 2012, and continued with exploration activities. The total investment for this phase-1 development reaches US $580 million. On the other hand, Supreme Energy is also in talks with PLN and the Ministry of Energy and Mineral Resources (ESDM) for the development of the Phase 2 Muara Laboh with a capacity of 65 MW.

The development requires an investment of US $400 million and will start immediately after the PPA negotiations are completed.

In addition to Muara Laboh, Supreme Energy has been developing the Rantau Dedap geothermal power project with a capacity of 90 MW in South Sumatra. The project is scheduled for completion by the end of next year with an investment of around US $700 million. The company is also preparing an exploration program for the Gunung Rajabasa Geothermal Work Area, located in the South Lampung Regency. Exploration activities will begin immediately after the negotiation of the extension of the PPA with PLN is completed.

The project has been developed by Supreme Energy Muara Laboh (SEML). SEML is owned by PT Supreme Energy of Indonesia, ENGIE of France and Sumitomo Corporation of Japan. For ENGIE, the project is their first high temperature geothermal power generation plant in the world.

“ENGIE’s championing of the Muara Laboh geothermal project is in line with our Group’s ambition to accelerate the world’s zero-carbon transition and install 9 GW of renewable energy capacity globally by 2021,” said Paul Magquire, President and CEO of ENGIE Asia-Pacific. “We are pleased that through this project, we are contributing to the ambitious target that Indonesia has set itself.”

David Cullerier, Country Manager, ENGIE Indonesia, said, “ENGIE is proud to have like-minded and locally knowledgeable partners such as PT Supreme Energy and Sumitomo Corporation join us in our bid to put Indonesians on the road to sustainability …”

During the construction, which started in 2017, the project has provided employment to 1,200 people and supported local businesses.

“Geothermal energy is a renewable, non-intermittent and eco-friendly source of energy that uses the heat coming from deep underground to generate green electricity. We are glad to have a trusted and technologically anvanced partners such as ENGIE in bringing this project to reality and empowering many lives.” said Victor Van Der Mast, Chief Operating Officer at PT Supreme Energy Muara Laboh.

The Muara Laboh project complies with the highest environmental and social standards set by lenders such as the Asian Development Bank and the Japan Bank for International Cooperation.

Source: KataData, ENGIE APAC