Indonesia to start $1.6bn Sarulla geothermal project development

29 May 2014 (Last Updated May 29th, 2014 18:30)

Indonesia will begin the $1.6bn Sarulla geothermal project development soon, following decades of delay, in Sarulla, North Sumatra.

Indonesia will begin the $1.6bn Sarulla geothermal project development soon, following decades of delay, in Sarulla, North Sumatra.

Indonesian Coordinating Economic Minister Chairul Tanjung was quoted by The Jakarta Post as saying that the country would soon begin the development of the geothermal power plant project.

"It will be the largest geothermal power plant in the world," Tanjung said.

The new geothermal power plant's operation will play a major role in the government's plan to boost power supply by about 60GW by 2022.

"Due to problems related to land acquisition and permit issuance, at least 30 geothermal projects have been delayed."

Due to problems related to land acquisition and permit issuance, at least 30 geothermal projects have been delayed, leaving most of the country's geothermal resources unused.

To be built and operated by Medco Power Indonesia, the geothermal power plant will have a power-generation capacity of 330MW and is considered to be the largest geothermal power plant in the world.

Medco Power president director Fazil Alfitri said the project field work is expected to start in early 2015 in Sarulla, North Sumatra.

Project infrastructure preparation was started by Sarulla Operations six months ago and the work is expected to continue from June until year-end with well drilling and other engineering operations, Fazil added.

Sarulla Operations includes Medco, Itochu Corporation, Kyushu Electric Power and Ormat International.

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