Sumitomo Corp. Signs 3 Billion Yen Deal to Construct Geothermal Plant

JCNN News Summaries - Japan Corporate News Network, Oct 19, 2005 by Aki Tsukioka

Tokyo, Oct 19, 2005 - (JCN) - Sumitomo Corporation has concluded a 3 billion yen ($26 mil) turnkey contract with the Indonesian power provider PT. PLN (Persero) for the construction of a Lahendong II geothermal power plant in Lahendong, Northern Sulaweshi.

The main steam turbines and generators will be built and delivered by Fuji Electric Systems, the world's leading turbine maker. Scheduled for completion in June 2007, the plant will have a total power generation capacity of 20MW.

Financed by a fund for renewable energy from the Asian Development Bank, this is the first geothermal project under Rakun, Indonesia's national electricity utilization initiative that forecasts the country's geothermal electricity output will leap from the current 800MW to 1,500MW by 2015.

Both companies have already completed jointly two other geothermal power generation projects in Indonesia. One of them build the world's largest plant with a power generation capacity of 110MW.