Japan’s Inpex buys into 330-MW geothermal project in Indonesia

TOKYO – Japan’s Inpex Corp said Wednesday it has taken a minority stake in the 330-MW Sarulla geothermal project in Indonesia, which is currently in the construction phase.

The move is in line with Inpex’s medium- to long-term strategy to pursue business opportunities in the renewable energy sector, it said, without disclosing financial details.

The company has bought 49% in a unit of PT Medco Power Indonesia, which in turn holds a 37.25% interest in project company Sarulla Operations Ltd. The other shareholders are Japanese firms Kyushu Electric (TYO:9508) and Itochu Corp (TYO:8001) with 25% each, and US-based Ormat Technologies Inc (NYSE:ORA) with a 12.75% stake.

The 330-MW geothermal plant is expected to start work in 2016 and reach full capacity by 2018. The output will be sold to local utility Perusahaan Listrik Negara under a 30-year power purchase agreement (PPA).

The long-delayed USD-1.6-billion (EUR 1.4bn) scheme reached financial close in May 2014. When fully operational, it is estimated to produce as much power as 700,000 Japanese households consume.