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ITOCHU Acquires Letter of Intent for New Coal-Fired IPP Project in Indonesia.

Indonesia's First High Efficiency (USC) Coal-Fired IPP Project with One of the Greatest Scales in Asia

Tokyo, June 20, 2011 - (JCN) - ITOCHU and Electric Power Development Co. ("J-Power") announced today that they have acquired a letter of intent for the Development of Central Java Coal Fired Power Plant 2 x 1000MW independent power producer (IPP) project that was put out to international tender in April 2011 in Indonesia, in collaboration with an Indonesian leading coal company, PT Adaro Energy Tbk. ("Adaro").

This project is one of Asia's largest IPP projects. It includes construction of a coal-fired power plant with a total capacity of 2,000 MW in the province of Central Java and a 25-year power purchase agreement (PPA) with Indonesia's state-owned electricity company PT Perusahaan Listrik Negara (PLN).

The project is characterized in using locally produced sub bituminous coal as fuel for power generation and in introducing to Indonesia the first two large boilers with a capacity of 1,000MW each, using the ultra super critical (USC) technology to minimize the environmental impact. The project is also in line with the initiative of the Japanese government for Deployment of Integrated Infrastructure Systems Overseas.

Indonesia faces an urgent to boost its power generation capacity to meet power demand that is rising steadily in association with rapid economic growth. The consortium of ITOCHU, J-Power, and Adaro was granted the letter of intent, evaluated for its technology to minimize the environmental impact, a proven track record in the operation of high efficiency coal-fired power plants, and ample experience in Indonesia.

In future, the consortium will sign the PPA, followed by procedures for an engineering, procurement, and construction (EPC) contract, a license granted from the Indonesian government, and a loan agreement with the syndicate. The commercial operation is expected to start in February 2017.

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Publication:JCNN News Summaries
Geographic Code:9INDO
Date:Jul 26, 2011
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