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MHPS starts construction on $2bn Cirebon power plant expansion in Indonesia

Mitsubishi Hitachi Power Systems (MHPS) has commenced construction work for the $2bn Cirebon expansion project to add a new 1GW coal-fired power plant in West Java Province, Indonesia.

The project will see the expansion of the 660MW coal-fired Cirebon power station, located in Cirebon district, about 250km east of Jakarta. The power plant is currently operated by Marubeni.

MHPS will construct the large-scale ultra-supercritical-pressure coal power plant on a full-turnkey basis in partnership with Toshiba Group and Hyundai Engineering & Construction.

The company will provide the ultra-supercritical-pressure boiler and flue gas desulfurization (FGD) system for the power plant under an engineering, procurement, construction contract awarded to its consortium in 2015.

Apart from manufacturing, supplying and sourcing equipment, MHPS will also take responsibility for carrying out trial operations.

MHPS, in a statement, said: “MHPS has forged close ties with Indonesia over a period spanning nearly 50 years, starting with shipment of the first steam turbine to the Indonesian market in 1971.

“Today, the company continues to play a significant role in developing the country's power grid. The latest project will further contribute to the expansion of the Java-Bali power network, a key part of PLN's national power supply equipment plan.”

The new power project, which is owned by Cirebon Energi Prasarana (CEPR), is anticipated to enter into commercial operation in 2022. It is expected to enhance the Java-Bali power grid.

Marubeni, Jera, Indika Energy, Samtan, Korea Midland Power, Japan Bank for International Cooperation and others will collectively provide finance of $731m for the project.

Following the commissioning, the expanded plant will provide power to Indonesian state-owned utility PLN (Persero) for 25 years under a long-term power purchase agreement (PPA). Along with the existing 660MW unit, the new 1000MW coal power plant will cater to the growing energy demand in Indonesia.


Image: The 660MW Cirebon coal fired power plant in Indonesia. Photo: courtesy of Marubeni Corporation.