New geothermal power plant for Indonesia
ING supports the Sarulla Geothermal Power Project in Indonesia. The project is designed to impact the sustainable goals of the country significantly. Find out why ING has chosen to support this specific project.
The Kawah Ijen volcano in East Java contains the world's largest acidic volcanic crater lake, called Kawah Ijen, famous for its turquoise colour. The active crater measures 950x600 meters and is known for its rich sulphur deposits, which are being quarried.
Recently, Sarulla Operations Limited and international lenders, including ING Commercial Banking, concluded a USD1.17 billion financing deal to construct the Sarulla Geothermal Power Project. This project is set to be the largest single contract geothermal power plant in the world. Once the plant is operational it will deliver more than 320 MW of clean, sustainable and reliable electricity to the Indonesian market. It is expected to reduce the carbon dioxide emissions by 1.3 million tonnes a year. The project is planned to be completed in 2018.
Clean and sustainable energy
“For ING Bank this deal is a sound example of ING’s support of clients who invest in electricity generation projects that contribute to a lower carbon economy,” explains Leo van Stijn, global head Utilities-Power & Renewables at ING Structured Finance. “In the past few years there has been a shift in ING’s portfolio of power plant financings towards more renewable energy projects.”
ING views the Sarulla project as proof of its commitment to support similar projects in the region and sustainable lending in particular. In Indonesia, ING has advised or arranged several power projects financing and pioneered the return of independent power projects financing in the country following the Asian crisis.
“A shift towards more renewable energy projects” - Leo van Stijn, global head Utilities-Power & Renewables at ING Structured Finance
Catalyst for further development
Jumpei Sakaue, Project Finance Manager of Sarulla Operations Ltd.: “The successful financing of the Sarulla project is expected to become a catalyst for further development of Indonesia’s abundant geothermal resources. We believe ING’s commitment to support clean and sustainable energy contributed to the successful closing of the Sarulla project financing arrangement. Especially because of its balanced view between proper risk analysis and comprehension of commercial requirements.”
What is geothermal power?
Geothermal energy is energy derived from the heat of the earth. Sources can be shallow grounds, hot water springs and hot dry rock resources for example. Technology nowadays has made it increasingly possible to tap into these renewable and clean energy sources.