July 31, 2017 / 9:02 AM / 2 years ago

Itochu wins $400 mln coal-fired power plants deal in Indonesia

TOKYO, July 31 (Reuters) - Japanese trading house Itochu Corp said on Monday it had won a contract from Indonesian state power company PLN to build 200-megawatt (MW) coal-fired power plants in South Kalimantan for $400 million.

The move comes as Japan looks to boost infrastructure exports, including coal-fired power technology, despite growing trend in Europe and parts of Asia to shift away from dirty coal power towards cleaner fuels to curb greenhouse gas emissions.

Itochu, through a consortium with South Korea’s Hyundai Engineering Co, Ltd and Indonesia’s PT Truba Jaya Engineering, will engineer, procure and construct two 100 MW plants in PLN’s existing Kalselteng power station in South Kalimantan Province. The power station currently has four 65-MW coal-fuelled power plants.

The project that will use Japanese companies’ equipment - IHI Corp’s boilers and Fuji Electric Co’s steam turbine power generators - will be completed in 2020.

In June, the Japan Bank for International Cooperation (JBIC) said it and the Bank of Tokyo-Mitsubishi UFJ, a unit of Mitsubishi UFJ Financial Group, will provide loans of 16.9 billion yen ($152.8 million) and $89 million in total to PLN as the Indonesian company will buy equipment from Japanese companies to build new power plants. ($1 = 110.5900 yen) (Reporting by Yuka Obayashi; Editing by Gopakumar Warrier)

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