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Toshiba to Supply Steam Turbine and Generators for One of World's Largest-class Geothermal Power Plant Projects

Toshiba Corporation (TOKYO:6502), today announced that is has been awarded a major contract to supply 3 x 60-megawatt geothermal steam turbines and generators (STG) for one of the world’s largest geothermal power plants, the Sarulla geothermal power plant project, which is now under construction in Tapanali Utara in Indonesia’s North Sumatra.

Toshiba, the world’s leading supplier of geothermal power generation equipment, was awarded the contract by Sarulla Operations Ltd. (SOL), a four-company consortium of Itochu Corporation and Kyushu Electric Power Co. Inc. of Japan, PT Medco Power Indonesia of Indonesia, and ORMAT International, Inc. of the U.S.A. The engineering, procurement and construction (EPC) contractor is Hyundai Engineering and Construction Co., Ltd. (HDEC). Toshiba will start to supply STGs to HDEC in July 2015, and the plant is scheduled to start operation in November 2016. Its output will account for approximately 1% of Indonesia’s total power generation.

Indonesia has the world's second largest geothermal resources, a potential generating capacity of 28,000MW, but installed capacity to date is a low 1,300MW*1. With growth driving demand and shortfalls in supply, the Indonesian government is promoting geothermal power as a means to raise generating capacity and reduce reliance on oil, where demand outstripped local production in 2004. Government plans include IPP projects with a capacity of 12,000MW*2 by 2025, which the Japanese government is supporting through its yen loan program.

Toshiba, an industry leader in power generation equipment, has world-class capabilities in nuclear, thermal and renewable power generation equipment. The company entered the geothermal business in 1966 with the supply of an STG for the Matsukawa plant, Japan's first geothermal plant, and subsequently expanded into North America, Southeast Asia and Iceland. Today, Toshiba is the world leader in the manufacture of STGs, with a market share of 23%*3, and has supplied 52 units with an installed capacity of 2,800MW. In recent years, Toshiba’s technological capabilities have supported order wins for geothermal STG in New Zealand, Kenya and Turkey.

Toshiba is highly familiar with the Indonesian market, where it is a leader in power generation equipment supply. The company's record to date includes 12 steam turbines and generators with a combined capacity of 4,200MW for four thermal power plants, including the Tanjung Jati B coal-fired thermal power plant; 26 hydroelectric turbines and generators with a combined capacity of 1,500MW for 11 hydroelectric power plants; and the Patuha Unit 1 project, a 55MW geothermal power plant now under construction in West Java.

Global geothermal power market continues to grow substantially, with new opportunities appearing around the world. By the end of 2013 the global geothermal market is expected to reach 12,000 MW*1 geothermal capacity. Countries with notable potential include the U.S., Indonesia, Japan, the Philippines, Mexico, Iceland, New Zealand and Italy. Toshiba will continue to participate in projects that promote environmentally-friendly, low carbon-dioxide renewables, including geothermal power.


Project Outline

1. Project:   Sarulla Geothermal Power Plant Project, Indonesia
2. Owner: Sarulla Operations Ltd.
3. EPC contractor: Hyundai Engineering and Construction Co., Ltd.
4. Site location: Tapanuli Utara, North Sumatra, Indonesia
5. Scope of Supply: 3x 60MW geothermal steam turbine and generators
*1   Source: Geothermal Energy Association’s 2013 Geothermal Power: International Market Overview
*2 Source: NEDO 2nd edition of Renewable Energy Technology White Paper, Chapter 7 Geothermal Power
*3 Toshiba survey of installed capacity.

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