Jakarta, 26 December 2024
PT Supreme Energy Muara Laboh (SEML), a joint venture between PT Supreme Energy Sumatera, Sumitomo Corporation, and INPEX Geothermal Ltd., signed a Power Purchase Agreement (PPA) Amendment with PT PLN (Persero) on 23 December 2024 for the development of Unit 2 and Unit 3 (140 MW) of the Muara Laboh Geothermal Power Plant (PLTP), located in Solok Selatan Regency, West Sumatra Province. With the issuance of tariff adjustment approval from the Minister of Energy and Mineral Resources and the consent letter from the Minister of Finance, the PPA Amendment for Muara Laboh Units 2 and 3 has met the conditions for signing by PT PLN (Persero) and SEML.
The Muara Laboh Geothermal Power Plant project will enhance Sumatra's electricity reliability, with a Commercial Operation Date (COD) target of Unit 2 (80 MW) in early 2027 and Unit 3 (60 MW) in 2033. The electricity produced will be transmitted through PT PLN’s Sumatra grid to increase the energy mix from renewables and strengthen the electricity supply in the area by providing electricity to 760,000 households. This additional capacity from the Muara Laboh Geothermal Power Plant project will reduce emissions by approximately 900,000 ton CO2/year. It will also have the potential of significant additional royalty and production bonus payments to the local governments. The construction of Units 2 and 3 will provide employment opportunity to around 1,500 people and boost the local economy in the surrounding area.
Muara Laboh Geothermal Power Plant commenced operations for Unit 1 (approximately 85 MW), on December 16, 2019, and is currently in very good performance to supply the electricity to PLN.
“The development of Units 2 and 3 of the Muara Laboh Geothermal Power Plant, that requires the investment of USD 900 million, demonstrates the strong commitment of Supreme Energy and its international partners to advancing geothermal energy in Indonesia. This is in line with the Indonesian Government's energy mix target from renewables as well as the target for net zero emission by 2060. We deeply value the ongoing support from the Government, PLN, and the Solok Selatan community.” said Supramu Santosa, Founder & Chairman of PT Supreme Energy.
In addition to Muara Laboh Geothermal Power Plant, PT Supreme Energy had developed the Rantau Dedap Geothermal Power Plant in South Sumatra with a capacity of 91.2 MW, which achieved COD on December 26, 2021. This project is developed and operated by PT Supreme Energy Rantau Dedap (SERD), a joint venture involving PT Supreme Energy Sriwijaya, Marubeni Corporation, Tohoku Electric, INPEX Geothermal Ltd., and PT Energia Prima Nusantara (PAMA/UT).
Through PT Supreme Energy Rajabasa (SERB), a joint venture between PT Supreme Energy Lampung with Sumitomo Corporation and INPEX Geothermal Ltd., the company is also preparing exploration activities for the Rajabasa Geothermal Work Area in Lampung Selatan Regency, Lampung Province. Exploration will begin upon completion of the PPA extension with PT PLN (Persero).
About Supreme Energy
PT Supreme Energy was founded in 2007. The company was established by professionals with extensive experience and knowledge in the energy sector in Indonesia, including active involvement in the oil and gas industry and the development and operation of geothermal energy over the past 50 years. Supreme Energy signed PPAs in 2012 for the development of three geothermal working areas and is one of the pioneers of private geothermal power producers in Indonesia.
About Sumitomo Corporation
Sumitomo Corporation conducts business activities in a wide range of industries on a global scale, with its 9 business groups and regional organizations all over the world working closely together. Sumitomo has a successful track record of EPC business in 12 geothermal power plant projects (approximately 900 MW), which is approximately 40% of current geothermal installed capacity in Indonesia. Also, Sumitomo has been active in the private power generation business since 1990 and has entered geothermal IPP business through this Muara Laboh Geothermal Power Plant project.
About INPEX CORPORATION
INPEX CORPORATION is Japan’s largest exploration and production (E&P) company, and is currently involved in projects across multiple continents, including the Abadi LNG Project in Maluku Province and the Ichthys LNG Project in Australia as Operator. By thoroughly making its oil and gas business cleaner while expanding its five net zero business areas, INPEX aims to provide a stable supply of diverse and clean energy sources including oil, natural gas, hydrogen, ammonia and renewables as a pioneer in energy transformation. (INPEX Geothermal Ltd. is a subsidiary established for the purpose of conducting geothermal business). For more information, visit https://www.inpex.co.jp/english/index.html.
Contact:
Prijandaru Effendi (EVP. Relations & Support Services): +62 811849 266
Ismoyo Argo (Sr. Manager of Business Relations & GA): +62 811188 027
Meidina Dwisavira (Corporate Communications & Relations Coordinator): +62 8788711 3839
Website: www.supreme-energy.com
Email: relations@supreme-energy.com