Japan-based Sumitomo Corporation has announced plans to acquire 15 per cent of Engie SA’s share in Indonesia’s Muara Laboh geothermal power project, increasing the company’s total interest in the project to 50 per cent.
Currently, the ownership of the geothermal facility is shared between Sumitomo (35 per cent), Engie (35 per cent) and a joint vehicle between PT Supreme Energy and INPEX Corporation (30 per cent).
Once the share acquisition process is completed, Engie’s shareholding will be split between the two remaining companies with INPEX is set to directly acquire a 20 per cent stake and Sumitomo will acquire 15 per cent.
Development of Muara Laboh is being carried out in two-phases with the 85MW phase 1 commencing operations in December 2019. Phase 2 is currently under development and is expected to add 140 MW of capacity when it commences operations in 2025.
The geothermal complex operates under a 30-year power purchase agreement with Indonesian state-owned electric utility PT PLN.