- Press Releases
April 29 (Renewables Now) - Japanese trader Sumitomo Corp (TYO:8053) said that it has entered into an agreement to increase its shareholding in the Muara Laboh geothermal power project in Indonesia to 50% by acquiring 15% of the share capital held by France's Engie SA (EPA:ENGI).
At present, the ownership over the Muara Laboh plant, located in West Sumatra province, is shared between Sumitomo (35%), Engie (35%), Indonesian private power generation developer PT Supreme Energy and Japanese oil company INPEX Corporation (TYO:1605). PT Supreme Energy and INPEX own a combined 30% indirectly, through a joint vehicle.
Once the transaction closes, Engie will no longer own shares in the project. INPEX is set to directly acquire the remaining 20% stake from Engie as Sumitomo takes its 15%, according to the Japanese trader.
Sumitomo expects to close the transaction in 2022, once terms and conditions set in the agreement are met.
Muara Laboh is a two-phase project. The 85-MW phase 1 has been operational since December 2019, while the phase 2 is currently under development. Sumitomo, which says it wants to be more involved in the project, expects the phase 2 to bring up to 140 MW of additional capacity and start operations in 2025.
The geothermal complex operates under a 30-year power purchase agreement with Indonesian state-owned electric utility PT PLN.