PT Pertamina Geothermal Energy (PGE), a subsidiary of Indonesian PT Pertamina, has awarded a $61m engineering, procurement, and construction (EPC) contract to French conglomerate Alstom for a 30MW installation at the Karaha geothermal power plant in Indonesia.
Under the deal, Alstom will supply and install the entire power plant which is located in West Java in the country.
The French firm is expected to deliver the power unit by December 2016.
Alstom Renewable Steam Plants vice-president Steven Moss said: "We are delighted to play a key role in helping Indonesia achieve its energy goals.
"This installation reinforces Alstom’s continued commitment to the geothermal markets and the importance of this renewable fuel source".
PT Pertamina Geothermal Energy CEO Rony Gunawan said, "The competitiveness of Alstom’s offer including quality, environment, and health and safety, was key in the awarding of the contract.
"We are looking forward Alstom improving capability and effectiveness to manage the project."
The 30MW plant is a part of PGE’s plans for eight new geothermal projects in Indonesia, having a total capacity of 655 MW.
In spite of having nearly 30,000MW of potential geothermal source, only 5% of it is utilised by Indonesia to meet its power requirements.
The country plans to utilise its geothermal reserves to strengthen its power industry and reduce geothermal reserves.
Alstom, which had been present in the country for nearly 50 years, has handled multiple projects for its power and rail industry.