OREANDA-NEWS. Sumitomo Corporation has been awarded an EPC contract by PT Pertamina Geothermal Energy ("PGE"), a geothermal power generation subsidiary of Indonesia's oil, gas, renewable and new energy company PT Pertamina, for Units 3 and 4 ("the Units"; power generating capacity: 110 MW [55 MW x 2 units])) at the Ulubelu Geothermal Area.

The Units that will be constructed is  located in Ulubelu district,  western part of Lampung Province, at the southern part of Sumatera Island in the Republic of Indonesia and the Contractor shall be by the consortium of Sumitomo Corporation and PT Rekayasa Industri ("Rekayasa"), a leading engineering company in Indonesia, adjacent to Units 1 and 2 (55 MW x 2 units) of the Ulubelu Geothermal Power Station completed by Sumitomo Corporation in 2012. The primary equipment-the geothermal steam turbines and the power generators-will be manufactured by Fuji Electric Co., Ltd., which has high-level technical capabilities and a wealth of experience in geothermal power generation facilities, while construction/installation of the Units and steamfield above ground system will be the responsibility of Rekayasa. Unit 3 will take 23 months and Unit 4 will take 33 months to build, so construction should be completed by July 2016 and May 2017 respectively. Funding for this project will be covered with a loan from the World Bank.

Sumitomo Corporation has joined with its partners Fuji Electric Co., Ltd., and Rekayasa in focusing on geothermal power generation projects in Indonesia. This latest contract is the tenth undertaking for a geothermal power generation project in Indonesia, the previous one being undertook in August 2013 for Unit 5 (35 MW x 1 unit) at Kamojang Pertamina Geothermal Area.

Indonesia has the world's largest resources of geothermal energy and its potential geothermal capacity is estimated to be 29,000 MW. However, presently only about 1,340 MW, or 5% of that potential is used for power generation. Under these circumstances, the Indonesian government is planning new projects to increase geothermal power generation by about 9,500 MW by 2025. The construction of the Units at Ulubelu, which will be operated by PGE, is one such project.

Sumitomo Corporation has been engaged in the construction and delivery of geothermal power stations in Indonesia, New Zealand, the Philippines, Iceland, Turkey, and other countries, and their total combined capacity reaches nearly 2,300 MW. This is equivalent to approximately 20% of the total capacity of geothermal power stations currently in operation around the world.

In Indonesia, the Units will increase the total capacity of the projects that Sumitomo Corporation has been involved in to almost 800 MW, accounting for more than 50% of geothermal power generation from facilities that exist or are under construction in the country.

Based on its proven track record and experience in this business, Sumitomo Corporation, in close collaboration with its partners, will make further efforts to win contracts for geothermal power generation projects in Indonesia and other countries, to support environmentally-friendly energy infrastructure development around the world.