Japan’s Marubeni to start construction on $2bn power project expansion in Indonesia

25 October 2015 (Last Updated October 25th, 2015 18:30)

Japan's Marubeni intends to construct a $2bn coal-fired power plant expansion in Cirebon, Indonesia, along with its PT Cirebon Energi Prasarana (CEPR) partners, including PT Indika Energy, Samtan and Korea Midland Power, and Chubu Electric Power.

Japan’s Marubeni intends to construct a $2bn coal-fired power plant expansion in Cirebon, Indonesia, along with its PT Cirebon Energi Prasarana (CEPR) partners, including PT Indika Energy, Samtan and Korea Midland Power, and Chubu Electric Power.

The partners have entered a 25-year power purchase agreement (PPA) with the Indonesian state-owned electricity utility PT Perusahaan Listrik Negara (PLN) for the expansion project, which is expected to have a capacity of 1GW.

The new facility will be set-up alongside the existing 660MW coal-fired power station in the city in West Java Province, which started operating in July 2012.

"The expansion project is expected to start commercial operations in 2020."

A company spokesman was cited by Reuters as saying that land for the new station has also been secured.

The expansion project is expected to start commercial operations in 2020.

CEPR intends to secure financing for the project in 2016 from international commercial banks and export credit agencies, including Japan Bank for International Cooperation, Nippon Export and Investment Insurance and Export-Import Bank of Korea.

The project will be based on ultra super-critical technologies, which usually derives most of its energy from coal through advanced technology available for commercial use.

Main equipment for the power project is likely to be obtained from Japanese manufacturers. While turbines are expected to be procured from Japan’s Toshiba boilers will be purchased from Mitsubishi Hitachi Power Systems, reports Reuters.