Mitsubishi to take 20% in operator of 230-MW Indonesian geothermal plant

Oct 17, 2012 - Japan's Mitsubishi Corp (TYO:8058) said today it had agreed to purchase a 20% stake in Star Energy Geothermal Pte Ltd, the operator of the 230-MW Wayang Windu geothermal power plant in Indonesia.

The move is in line with Mitsubishi's plan to expand its renewable energy business. The company noted that the acquisition marked both its first operation of geothermal power capacity and its entry into Indonesia's power sector.

Star Energy's geothermal power plant is located on Java Island. The first 110-MW unit of the Wayang Windu plant has been producing power since 2000, while the second project phase of 120 MW was wrapped up early in 2009. Mitsubishi is looking to get involved in additional geothermal projects locally, including the planned 190-MW expansion of Wayang Windu.

"[Mitsubishi] also hopes to become further involved in geothermal power generation in countries that possess promising geothermal resources, including Japan," the company said in the statement.

Indonesia, situated on the Pacific "Ring of Fire", boasts geothermal power potential estimated at some 29,000 MW, among the largest in the world. The Indonesian government seeks to bolster its installed geothermal power capacity to 6,000 MW by the end of the decade, Mitsubishi said.

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