News / IPPToday #284: MoU signed for 2 GW expansion of coal-fired power station in Indonesia

IPPToday #284: MoU signed for 2 GW expansion of coal-fired power station in Indonesia

🕔 September 13, 2018
IPPToday #337: US$320 million financing secured for 330 MW solar project in Australia

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Doosan Heavy Industries & Construction (DHIC) has announced that it has signed a Memorandum of Understanding (MoU) to construct two 1,000 MW coal-fired power plants in Cilegon, Banten province, Indonesia

DHIC is being contracted by PT Indo Raya Tenaga (IRT), a special purpose vehicle jointly established by PT. Indonesia Power, a subsidiary of state-run electricity provider Perusahaan Listrik Negara (PLN) and petrochemical firm PT. Barito Pacific.

The plants will be Units 9 and 10 of the Suralaya Power Station. The station currently has a maximum generating capacity of 4,025 MW. It was built in four phases - two 400 MW units commenced operations in 1984 and 1985; another two 400 MW units were added in 1988 and 1989. The plant was expanded again in the late 1990s, with three 600 MW units brought online by 1997. An eighth unit of 625 MW capacity opened in 2011.

The planned Units 9 and 10 will utilise DHIC's ultra-supercritical technology. This means that the plants will operate with a higher steam pressure and higher temperature than current critical pulverized coal thermal power plants, ensuring better efficiency and a lower CO2 footprint.

The technology includes large-scale boilers equipped with low-NOx combustion systems, and turbines and generators designed to maximise aerodynamics.

The total cost of construction is KRW1.9 trillion (US$1.69 billion). DHIC's construction contract is valued at around KRW1.5 trillion (US$1.33 billion).

The MoU was signed during the Korea-Indonesia Industrial Cooperation Forum, and was attended by Indonesia's Industry Minister and South Korea's Trade, Industry and Energy Minister, indicating the support of both national governments. However, this does not guarantee widespread support for the project.

As well as growing international pressure replace coal with more sustainable energy sources, recent coal-fired generation projects in Indonesia have faced resistance from locals. Last year, legal petitions by environmental groups delayed the financial close of 1,000 MW coal-fired power project in West Java by eight months.

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