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Aerial view of Muara Laboh geothermal plant

22 February 2019

Muara Laboh geothermal plant, Indonesia, reaches commercial operation

The Muara Laboh geothermal plant in West Sumatra Province, Indonesia, has reached commercial operation.

The USD 580 million plant has been developed by a consortium between PT Supreme Energy, ENGIE and Sumitomo Corporation, with financing through a syndicated loan from the Japan Bank for International Cooperation, the Asian Development Bank, Mizuho Bank, Sumitomo Mitsui Banking Corporation and MUFG Bank. Mott MacDonald is the lenders’ technical and environmental advisor on the project.

Indonesia hosts approximately 40% of the world's geothermal reserves. It aims to increase geothermal power generation from circa 2GW at the end of 2019 to 6.6GW by 2028. to meet increasing electricity demand and achieve its commitments to reducing CO2 emissions.

The 85MW Muara Laboh plant will use 100% geothermal energy to provide electricity to households via the Sumatra grid. Building the plant required the drilling of over 10 geothermal wells and the construction of a steam gathering system and associated infrastructure.

Mott MacDonald has been involved with the project since 2016, initially carrying out a due diligence assessment, followed by monitoring during the construction period. The consultancy will continue to monitor operations of the plant throughout the loan period. Mott MacDonald is also supporting PT Supreme Energy’s second geothermal development, the 90MW Rantau Dedap plant, which is currently under construction.

Mott MacDonald’s project manager Surin Lertvimolchai said: “We are very happy to see the Muara Laboh geothermal plant reach commercial operation and help Indonesia meet its clean energy targets. The plant will provide geothermal energy to 420,000 households.”

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