Sumitomo Corporation signs deal with PT. Pertamina Geothermal Energy for construction of the fifth u

2013-10-9

Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; President and CEO: Kuniharu Nakamura) has been awarded an EPC contract for the fifth unit (35 MW capacity) of the Kamojang geothermal power station from PT. Pertamina Geothermal Energy (hereafter, “PGE”), the geothermal arm of the Indonesian state-run oil and gas company PT. Pertamina.

Sumitomo Corporation will execute the contract in a consortium with PT. Rekayasa Industri (hereafter, “Rekayasa”). The construction site is located in Garut, a city situated approximately 40 km from Bandung City, West Java, Indonesia. Fuji Electric Co., Ltd. (hereafter, “Fuji Electric”), a company with technological excellence and a strong track record in geothermal equipment, will manufacture and deliver the major equipment for the project, namely the steam turbine and generator, while Rekayasa will carry out the civil work and installation of the plant and the steam collection system. Construction is scheduled to take 23 months and be completed in July 2015.

Sumitomo Corporation has been committed to various geothermal projects in Indonesia in partnership with Fuji Electric and Rekayasa. The Kamojang Unit 5 project is Sumitomo Corporation’s ninth geothermal undertaking in the country, with recent achievements that include Wayang Windu Unit 2 (117 MW) in Java completed in 2009, Lahendong Unit 4 (20 MW) in Sulawesi completed in 2011, and Ulubelu Units 1 and 2 (55 MW each) in Sumatra completed in 2012. Each project was completed within the stipulated time period, thus earning Sumitomo Corporation great credit from its clients.

Indonesia has the world’s largest resources of geothermal energy and its potential geothermal capacity is estimated to be 29,000 MW. However, presently only about 1,340 MW, or 5% of that potential is used for power generation.  Under these circumstances, the Indonesian government is planning to increase geothermal power generation by about 4,000 MW through new projects under the Crash Program II launched in 2010. The Kamojang Unit 5 project, which is operated by PGE, is one such project.

Sumitomo Corporation has been engaged in the construction and delivery of geothermal power stations in Indonesia, New Zealand, Philippines, Iceland, Turkey, and other countries, and the total combined capacity reaches nearly 2,300 MW. This is equivalent to approximately 20% of the total capacity of geothermal power stations currently in operation around the world. In Indonesia, the Kamojang Unit 5 project will increase the total capacity of the projects that Sumitomo Corporation has been involved in to almost 700 MW, accounting for about 50% of geothermal power generation from facilities that exist or are under-construction in the country.

Based on its proven track record and experience in this business, Sumitomo Corporation, in close collaboration with its partners, will make further efforts to win contracts for geothermal power generation projects in Indonesia and other countries, to support environmentally friendly energy infrastructure development around the world.