Geothermal Power Plant in Sumatra

It seems only natural for a country that lies on a volcanic rim to utilise the sources below its surface. They do it in New Zealand and Japan quite effectively. Indonesia has selected Sumatra as the site for the proposed geothermal Plant.

Indonesia wants to develop its estimated 20,000 megawatts of potential geothermal power capacity to help replace oil and gas as the main sources of energy. Tapping geothermal reserves may also help ease power shortages in the country. Geothermal plants use wells to tap underground deposits of heated water. The water, which turns into steam upon reaching the surface, is used to power turbines and generate electricity.

PT Medco Energi Internasional, Indonesia's largest publicly traded oil company, may build a geothermal power plant in North Sumatra for state utility PT Perusahaan Listrik Negara after the winning bidder pulled out according to a business report in the Jakarta Post.

Medco, an oil company that started an electricity division in 2003, is working with Itochu Corp. and Ormat Technologies Inc. on the project. Itochu is Japan’s fourth-largest trading company. Ormat is a Sparks, Nevada based company that makes geothermal power equipment and operates power stations.

It is estimated that it will take two years to build the geothermal plant after the contract is signed and it could start power production in 2009,