ENGIE builds in Indonesia its first power plant in the world to produce electricity from geothermal energy
ENGIE, as a member of the PT Supreme Energy Muara Laboh consortium, has finalized funding for the first phase of the Geothermal Project Muara Laboh in Indonesia, the Group’s first high-temperature geothermal power plant. The project’s first phase – which commissioning is planned in 2019 – will generate 80 megawatts of electricity without emitting CO 2 , equivalent to the energy consumption of some 120 000 homes. ENGIE, through its subsidiary Storengy, has expertise in drilling and underground knowledge necessary for the realization of this type of projects. Construction of the power plant in the Solok Selatan region of western Sumatra will begin in 2017 and will last 30 months. During this period, about 1,200 jobs will be created, supported by local businesses.
With nearly 40% of global geothermal reserves – or an estimated potential of 28,000 MW – Indonesia has a major resource to enable it to achieve its 29% reduction target in emissions of CO 2 by 2030. Isabelle Kocher, CEO of Engie, said: “I am proud of our teams who have once again demonstrated our expertise for projects of this magnitude since the exploration of the subsoil to construction and The operation of power plants from geothermal energy. These technologies are key for countries like Indonesia that want to provide their people with electricity from low-carbon, efficient sources. Our contribution to the geothermal project Muara Laboh is perfectly in line with ENGIE’s strategy to become a world leader in energy transition, focusing in particular on the development of competitive renewable energies. “
Both efficient and economical, geothermal energy is a renewable, non-intermittent and environmentally friendly source of energy that uses heat from deep basements for heating and power generation, Even for air conditioning systems. ENGIE is one of the leading producers and suppliers of geothermal energy in Europe for the heating and cooling of residential or commercial buildings using different geothermal sources. ENGIE is part of the PT Supreme Energy Muara Laboh consortium alongside the Japanese trading and investment company Sumitomo Corporation and the Indonesian developer of PT Supreme Energy geothermal projects.
The $ 440 million financing agreement was signed by the PT Supreme Energy Muara Laboh consortium with the Japan Bank for International Cooperation, the Asian Development Bank and other commercial banks under the guarantee of Nippon Export and Investment Insurance, to assist in the development of green energy in Indonesia. ENGIE has been present in Indonesia for more than 60 years. Muara Laboh is the first renewable project of the Group in this country. ENGIE employees in Indonesia are committed to contributing to the sustainable development of one of the fastest growing economies in the world by increasing energy supply from natural gas and energy Renewable energy sources (geothermal, solar, biogas), optimizing energy efficiency and implementing solutions to meet the challenges of rapid urbanization in the country.