Ormat Technologies is combining with Itochu Corporation to build a 330 megawatt (MW) geothermal power plant in Northern Sumatra, Indonesia.
The project will cost an estimated $800 million, according a report in Reuters. Ormat and Japan’s Itochu Corp. were originally awarded the contract in 2006 and are working in collaboration with Indonesian energy firm PT Medco.
On Wednesday, Indonesia’s energy ministry urged PT Medco to speed up construction. “We want this project to be built quickly because it is very important for Indonesia,” J. Purwono, director general of electricity at the ministry, told reporters, adding, “we badly need more power plants.”
Indonesia, the world’s most populous Muslim country, does not maintain diplomatic relations with Israel. The only OPEC member in Southeast Asia., Indonesia has become a net importer of oil in recent years.
The vast archipelago, with hundreds of active and extinct volcanoes, has the potential to produce an estimated 27,000 MW of electricity from geothermal sources.
Ormat Technologies is the NYSE-listed, U.S.-based subsidiary or Ormat Industries. Ormat Industries, located in Yavne, Israel, is one of the world’s leading vertically integrated companies dedicated to providing solutions for geothermal power, recovered energy generation (REG) and remote power.
This article originally appeared on Cleantech Investing in Israel.