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Large geothermal plant to be constructed in Indonesia

$1.6 billion, 330 MW 'Sarulla' project touted as world's biggest geothermal power plant,

The new Sarulla project, scheduled for completion in 2018, will provide clean energy to an Indonesian power market by traditional energy sources, i.e., oil and gas. Specifically, the new geothermal plant will ultimately eliminate more than 1 million tonnes of carbon dioxide emissions at full capacity. Construction is set to begin later this month, Reuters reports.

Financing of the Sarulla geothermal plant is being provied by the Japan Bank for International Cooperation (JBIC) and the Asian Development Bank (ADB), along with Bank of Tokyo-Mitsubishi UFJ Ltd, ING Bank NV. Societe Generale, Sumitomo Mitsui Banking Corportation, Mizuho Bank Ltd and National Australia Bank Ltd. are providing funding as well. The project is sponsored by Itochu Corporation, Kyushu Electric Power Company, PT Medco Power Indonesia and Ormat International.

The announcemnet of the Sarulla geothermal power plant is welcomed news, as power demand in Southeast Asia is expected to increase by more than 7 per cent a year. Analysts believe the region's vast geothermal resources are critical in meeting this emerging demand.

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Energy efficiency  •  Energy infrastructure  •  Geothermal  •  Policy, investment and markets