TOKYO -- Japanese trading house Sumitomo Corp. has won an order to construct a coal-fired power plant in Indonesia utilizing the latest high-efficiency technology.
The estimated 54 billion yen ($446 million) deal comes from state electricity company PLN. Sumitomo will be expanding the Lontar power station, located about 80km west of Jakarta, with major U.S. engineering company Black & Veatch International and a local construction company.
The forthcoming 310,000kw plant will be Lontar's fourth. It will employ supercritical pressure technology, which is said to be 10-20% more efficient than conventional thermal-combustion methods. IHI will supply the boiler while Toshiba will provide the steam turbine and generator.
Facing growing energy needs, the Indonesian government plans to build power plants capable of generating 35 million kilowatts, equivalent to the output of 35 nuclear reactors, by 2019. The expansion of the Lontar plant is part of that drive. Coal will account for the bulk of the total, with geothermal energy and hydropower contributing the rest. Indonesia is speeding up construction as demand for electricity is surging.
Sumitomo has built and run power plants fueled by coal and geothermal energy in Indonesia. With already a foothold in the country, the company aims to secure more plant orders.