The turnkey contract for the development of the power plant in the Indonesian province of South Sumatra will be conducted with Mitsubishi Corporation, Chinese construction company SEPCO III Electric Power Construction Co. (SEPCO III), and local major civil engineering and construction firm PT Wijaya Karya (Persero). Commercial operations are scheduled to begin in 2024.

The development site for the Lumut Balai II geothermal power plant is about 290km southwest of the city of Palembang in the southern region of Sumatra, at an elevation of approximately 1000m. The project aims to mitigate the effects of climate change and contribute to the Indonesian government's target for 23% of the country's power supply to be derived from renewable energy sources by 2025. PGE has a received a yen loan (official development assistance) from the Japan International Cooperation Agency (JICA) to conduct this project.

Mitsubishi Power will be in charge of the basic design of the geothermal power generation facilities, and will supply the steam turbine, generator and other main accessory equipment. Utilising its technical expertise and knowledge gained from its decades of experience as an EPC contractor, Mitsubishi Power will also dispatch engineers to provide guidance for installation and trial operation.

Commenting on the contract, Kazuki Ishikura, president director of MHI Group local subsidiary PT. Mitsubishi Power Indonesia, said: "Indonesia has the world's second-largest geothermal potential, and we are honoured to have a hand in supporting power plants across Indonesia that leverage this massive potential - from the Darajat geothermal power plants in West Java, Kamojang geothermal power plant in Bandung and now, the Lumut Balai II geothermal power plant. It is our honour to be selected as a trusted partner for Pertamina Geothermal Energy to deliver secure and sustainable power to millions across the nation and realize Indonesia's renewable energy targets."

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