Alstom to build €61m geothermal plant

Paris - Alstom will build a geothermal power plant in Indonesia under a €61m deal with a subsidiary of PT Pertamina, the French industrial giant said Wednesday.

The turnkey plant, to generate 30 megawatts, will be set up in Karaha, in western Java.

Alstom will provide engineering, materials and construction in the project to be completed by the end of next year for PT Pertamina Geothermal Energy, Alstom said in a statement.

Indonesia, made up of thousands of islands stretching from the Indian to the Pacific Oceans, is home to some 130 volcanoes and is estimated to hold around 40% of the world's geothermal potential.

However it produces only a tiny fraction of its energy by converting underground heat into electricity, lagging far behind others such as the United States and the neighbouring Philippines.

"We are delighted to play a key role in helping Indonesia achieve its energy goals," said Steven Moss, Alstom's vice president in charge of renewable steam plants.

"This installation reinforces Alstom's continued commitment to the geothermal markets and the importance of this renewable fuel source," he said.