The Asian Development Bank (ADB) has signed a USD 92.6M financing agreement with geothermal power producer Supreme Energy Muara Laboh (SEML) to develop Indonesia’s geothermal power capabilities.
The funds will go toward the expansion of a geothermal facility at Muara Laboh in West Sumatra and the construction, operation, and maintenance of a new 83MW geothermal power plant.
The support will “help Indonesia to meet its clean energy targets and deliver affordable electricity,” said the ADB’s country director for Indonesia, Jiro Tominaga. The project will also allow Indonesia to enhance its long-term energy security while reducing greenhouse gas emissions.
The finance package consists of USD 38.8M from the bank’s ordinary capital resources, a USD 38.8M “B loan” from Sumitomo Mitsui Banking, and a USD 15M concessional loan from the Australian Climate Finance Partnership (ACFP).