First geothermal power genetation plant
ENGIE builds in Indonesia its first geothermal power generation plant in the world.
ENGIE, as part of PT Supreme Energy Muara Laboh consortium, has reached the financial closing for phase I of the Muara Laboh geothermal project in Indonesia, the Group’s first high temperature geothermal power generation plant in the world. With commissioning planned in 2019, this first phase will generate 80 MW of emission-free electricity, the equivalent of the energy consumption of around 120,000 households.
ENGIE, through its subsidiary Storengy, has all the drilling and underground expertise to manage such projects. With construction expected to commence this year in the Solok Selatan region in West Sumatra province, the project will provide employment opportunities to 1,200 people and support local businesses during the 30-month construction period. Indonesia has around 40% of the world’s geothermal reserves, estimated at 28,000 MW, making it an important resource for the country to achieve its commitments to reduce carbon emissions by 29% by 2030.
I am proud of our teams who succeeded in confirming our expertise in such projects, from the underground exploration to the construction and operation of geothermal power plants. Those technologies are key for countries like Indonesia to provide their population with efficient low-carbon power generation sources. Our partnership in the Muara Laboh geothermal project is fully in line with ENGIE’s strategy to be a leader of the energy transition in the world, notably focusing on competitive renewable energies.
Isabelle Kocher, ENGIE Chief Executive Officer
Geothermal energy is a renewable, non-intermittent and eco-friendly source of energy that is both efficient and economical, using the heat coming from deep underground either for heat, power generation or even air-conditioning. ENGIE is a leading producer and supplier in Europe of geothermal energy for heating and cooling of residential and commercial facilities, using various geothermal sources.
ENGIE is part of the PT Supreme Energy Muara Laboh consortium with the Japanese trading and investment company Sumitomo Corporation and the Indonesian geothermal power developer, PT Supreme Energy.
The USD 440 Million financing agreement was signed by PT Supreme Energy Muara Laboh consortium with the Japan Bank for International Cooperation, the Asian Development Bank and a set of commercial banks under a guarantee from Nippon Export and Investment Insurance, to support clean energy development in Indonesia. ENGIE has been present in Indonesia for over 60 years. Muara Laboh is the first renewable project of the Group in the country. ENGIE Indonesian employees are committed to contributing to the sustainable development of one of the world’s fastest-growing economies, through increasing energy supply with natural gas and renewable power (geothermal, solar, biogas), as well as improving energy efficiency and providing solutions to the challenges of rapid urbanization.