Japan’s Jera exits Indonesian Paiton coal power project

Source : https://www.argusmedia.com/en/news/2246214-japans-jera-exits-indonesian-paiton-coal-power-project

 

Japanese thermal power joint venture Jera has decided to sell its entire stake in a coal-fired power project in Indonesia's east Java, part of its strategy to review its portfolio.

Jera has agreed to sell around 14pc of Indonesian independent power producer Paiton Energy to MDES, a subsidiary of Indonesian energy firm MDAL for an undisclosed sum. Paiton Energy operates a 2,045MW coal-fired power plant, which consists of the 615MW No.7 and No.8 units and the 815MW No.3 unit. It sells electricity to Indonesian state-owned power utility PLN through an unspecified long-term contract.

The deal reflects Jera's plan to achieve carbon neutrality by 2050. The company is now gearing up efforts to develop clearer energy sources such as hydrogen and ammonia. The proceeds from the sale of Paiton shares are likely to be used for investment in decarbonisation.

Japanese trading house Mitsui agreed to sell its 45.2pc stake in Paiton in June this year. The company will exit from power operations in Indonesia once the transaction is completed as scheduled by the end of March next year.

 

By Motoko Hasegawa

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