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Sumitomo tapped for $174M Indonesian geothermal plant

TOKYO -- Sumitomo Corp. has been hired to build one of Indonesia's biggest geothermal power plants, a 110,000kW facility the Japanese trading house hopes will lead to even more such deals in the Ring of Fire archipelago.

     The 18 billion yen ($174 million) order was placed by a subsidiary of Pertamina, the state-run oil and gas company.

     Work on the plant, located in the Ulubelu district of southern Sumatra, begins in earnest this month. The first of its two 55,000kW generating units is slated to begin operation in July 2016. Fuji Electric will supply turbines and generators for the plant, while Rekayasa Industri, a local engineering company, will handle construction.

     Indonesia sits atop greater geothermal resources than almost any other country. Plans call for increasing capacity to harness underground heat more than sevenfold to 9.5 million kilowatts by 2025. Sumitomo has already completed nine such projects there. The latest one will bring the total to 800,000kW -- more than half the country's existing geothermal capacity.

(Nikkei)

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