INPEX CORPORATION (INPEX) announced that through its wholly owned subsidiary INPEX Geothermal Sarulla, Ltd., it commenced commercial operations of the first unit of the Sarulla Geothermal Independent Power Producer (IPP) Project (the Project), the world’s largest single-contract geothermal power project located in North Sumatra Province, Indonesia, on March 18, 2017.
The Project involves geothermal power development through the subsidiaries of INPEX, ITOCHU Corporation, Kyushu Electric Power Co., Inc. of Japan, PT Medco Power Indonesia and Ormat Technologies of the US as well as Sarulla Operations Ltd., the operating company for the Project jointly established by these subsidiaries.
Construction of the geothermal power plant, which will have an output of approximately 330MW, began in 2014 and the plant’s first unit with a capacity of approximately 110MW was completed in October 2016. Following commissioning work on its main facilities, etc., the unit recently commenced commercial operations. Power generated from the first unit is scheduled to be sold to Perusahaan Listrik Negara, Indonesia’s government-owned electricity company over a period of 30 years.
Going forward, INPEX and its partners will proceed with construction work, etc. on the plant’s second and third units with the aim of commencing commercial operations in sequence, starting with the second unit in 2017 and the third unit in 2018. The commencement of commercial operations of the first unit is expected to contribute not only to the supply of electricity to Indonesia but also to the development of Indonesia’s economy.
As an integrated energy company contributing to society, INPEX will continue to proactively pursue the “reinforcement of its renewable energy initiatives,” which is one of the growth targets outlined in the company’s Medium- to Long-term Vision. The impact of this development on the consolidated financial results for the year ending March 31, 2017 is expected to be minimal.