Itochu Corporation and J-Power have acquired a letter of intent for the development of Central Java Coal Fired Power Plant project, that was put out to international tender in April 2011 in Indonesia, in collaboration with an Indonesian leading coal company, PT Adaro Energy Tbk. J-Power and Adaro would hold 34% of the project, and Itochu a 32% stake. This project is one of Asia’s largest IPP projects, to be developed under a Build-Operate-Transfer (BOT) scheme. It includes construction of a coal-fired power plant with a total capacity of 2,000 MW (2 phases of 1,000 MW each) in the province of Central Java and a 25-year power purchase agreement (PPA) with Indonesia’s state-owned electricity company PT Perusahaan Listrik Negara (PLN). The plant would burn local sub-bituminous coal and would use USC technology. Construction would start in August 2012; the first unit would be commissioned in August 2016 and the second one in February 2017.
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