Japan’s Mitsui exits Indonesia's Paiton coal-fired IPP

Source : https://www.argusmedia.com/en/news/2227395-japans-mitsui-exits-indonesias-paiton-coalfired-ipp

 

Japanese trading house Mitsui has decided to sell its stake in the Paiton coal-fired power plant in Indonesia's east Java, marking its exit from power operations in the country.

Mitsui has agreed to sell its 45.52pc stake in Indonesian independent power producer (IPP) Paiton Energy to Singapore-based RH International (RHIS), a subsidiary of Thai power producer Ratch, for an undisclosed sum. Mitsui aims to complete the transaction by the end of March next year.

Paiton Energy operates a 2,045MW coal-fired power plant, which consists of the No.7 and No.8 615MW units and the 815MW No.3 unit, which sells electricity to Indonesian state-owned utility PLN through an unspecified long-term contract.

Mitsui has also agreed to sell to RHIS 45.52pc of Netherlands-based Minejesa Capital and 65pc of Singapore-based IPM Asia, both of which are entities related to the Paiton IPP project. The deals reflect Mitsui's strategy to reshuffle its business portfolio with the growing global trend towards decarbonisation.

Paiton accounted for nearly half of Mitsui's 1,980MW coal-fired power capacity, or 18pc of its 11,000MW total at the end of March this year. Coal's share of Mitsui's power portfolio falls to around 10pc after the sale of Paiton.

Japanese thermal power joint venture Jera is also a partner in Paiton with an undisclosed stake. The company declined to comment on any possibility of it pulling out of the project in the future, while it has pledged to achieve carbon neutrality by 2050 and intends to phase out its coal-fired units with inefficient technology by 2030.

 

By Motoko Hasegawa

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