Japan leads in buiding geothermal projects in Indonesia

A Japan-led joint venture will build and operate two geothermal power plants in Indonesia, each able to generate 220 megawatts.

The joint venture, in which Sumitomo and France's GDF Suez each own 35 percent with Indonesia's PT Supreme Energy holding the rest, will complete the plants in 2016, the trading house said.

State-owned electricity company PT Perusahaan Nagara will buy electricity for 30 years from the two plants, which will be built in West Sumatra and Lambung. Japan's Bank for International Cooperation is expected to provide financing for the $1.5 billion project.

The plants will collectively provide sufficient power for 6 million people.

Sumitomo, which is conducting several feasibility studies in Indonesia, also operates the Tanjung Jati B coal fired power plant, which has a total generation capacity of around 2,640MW.

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