Marubeni says to build 1 GW coal power plant in Indonesia

TOKYO, Oct 23 (Reuters) - Japanese trading firm Marubeni Corp said on Friday it and its four partners will build a $2 billion one gigawatt coal-fired power plant in Cirebon, Indonesia, to meet growing electricity demand.

Marubeni, Indonesia’s PT Indika Energy Tbk, South Korea’s Samtan Co and Korea Midland Power Co, and Japanese utility Chubu Electric Power, have signed a 25-year contract with Indonesia’s state utility PT Perusahaan Listrik Negara (PLN) to sell electricity from the plant.

The new power plant which aims to start operation in 2020 is the latest in a series of overseas power generation projects by Japanese trading houses.

Marubeni, which has been operating a 660 megawatt coal-fired power station in Cirebon since 2012, plans to construct the new plant next to the existing one. The land for the new station has been secured, a company spokesman said.

The new plant will use ultra super-critical technologies, which typically get the most energy from coal through the most advanced technology available for commercial use.

Turbines will be supplied by Japan’s Toshiba, while boilers will be procured by Mitsubishi Hitachi Power Systems, joint venture of Mitsubishi Heavy Industries Ltd and Hitachi Ltd, he said.

The Tokyo-based trading house aims to secure financing in 2016 through project finance by international commercial banks, export credit agencies such as Japan Bank for International Cooperation, Nippon Export and Investment Insurance and Export-Import Bank of Korea.

The project is 30 percent owned by Marubeni, 25 percent by Indika, 20 percent by Samtan, 10 percent each by Korea Midland Power and Chubu Electric.

Reporting by Yuka Obayashi; Editing by Michael Perry