Marubeni starts construction of Rantau Dedap geothermal project in Indonesia

Marubeni Corporation has announced that PT. Supreme Energy Rantau Dedap (SERD), which is owned by Marubeni, ENGIE S.A., PT. Supreme Energy, and Tohoku Electric Power Co., has signed a loan agreement for limited-recourse project financing, and has initiated construction of its geothermal power plant for the Rantau Dedap Geothermal Independent Power Project (IPP), located in the Republic of Indonesia.
Marubeni starts construction of Rantau Dedap geothermal project in Indonesia Marubeni starts construction of Rantau Dedap geothermal project in Indonesia Marubeni starts construction of Rantau Dedap geothermal project in Indonesia Marubeni starts construction of Rantau Dedap geothermal project in Indonesia Marubeni starts construction of Rantau Dedap geothermal project in Indonesia

Marubeni exploratory well

Duncan Moore

Editor

Duncan Moore

This loan agreement took the form of co-financing supported by the Japan Bank for International Cooperation, the Asian Development Bank, Mizuho Bank, Sumitomo Mitsui Banking Corporation, and MUFJ Bank. The loan of commercial banks in Japan uses the insurance of Nippon Export and Investment Insurance Co.

SERD will construct the 98.4MW power plant in the South Sumatra province of Indonesia, and all generated power will be dispatched to PT. PLN (Persero) under a 30-year power purchase agreement. The consortium of PT. Rekayasa Industri (as civil engineering and construction contractor) and Fuji Electric Co. (as turbine and generator supplier) were engaged in the construction of the geothermal power plant; the two companies combine the use of high-quality Japanese equipment with extensive experience in geothermal power plant construction in Indonesia.

The Republic of Indonesia is aggressively promoting the development of renewable energy, and according to its electricity supply business plan, intends to increase renewable energy up to 23 per cent of its entire generation capacity by 2025. Furthermore, with its goal to diversify its power generation sources, Indonesia is focusing on further development of its abundant geothermal resources.

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