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Private energy contractor and geothermal power producer PT Star Energy is seeking to invest up to $400 million to expand and open two generators by 2012 at its geothermal power plant, Wayang Windu.

“We have allocated $350 million to $400 million to expand the Wayang Windu plant,” said Bret Mattes, Star Energy’s chief executive and managing director, at an inauguration ceremony for Unit 2 of the Wayang Windu geothermal power station in Pengalengan, West Java.

The company wants to supply electrical grids operated by state utility PT PLN on the islands of Java, Bali and Madura, Mattes said.

The Wayang Windu plant, the country’s biggest geothermal power station, currently has two turbines that generate 110 megawatts and 170 MW, respectively.

The plant’s generating capacity will be increased to 400 MW by the end of 2012 following the construction of Unit 3 and Unit 4, Mattes said.

Construction plans for other units are currently in the design and development phase.

Construction on Unit 2 cost $200 million and began in 2007, with Japan’s Sumitomo and Fuji Electric as the contractors.

Unit 1, which contributes 110 MW to PLN’s grid, has been operating since 2000.

The Wayang Windu plant was developed jointly by Star Energy and PT Pertamina Geothermal Energy, which is a subsidiary of state oil and gas producer PT Pertamina.

The two companies signed an energy sales contract with PLN to develop up to 400 MW of generating capacity, with each generating unit set to operate for up to 30 years.

“The consortium agreed to sell electricity to PLN at 5.5 to 5.7 cents a kilowatt hour,” said Abadi Poernomo, PGE’s president director.

Purnomo Yusgiantoro, minister of energy and mineral resources, said that the government would continue to support the development of geothermal ener gy. “The government has set a road map,” Purnomo said.

“In 2025, geothermal energy will account for 6 percent of Indonesia’s energy consumption, which is expected to be two million barrels a day.”

Star Energy has also suggested trading carbon credits from its Wayang Windu Unit 2 with the United Nations.

The scheme could provide the plant with up to $8 million per year in carbon credits, said Alex Smillie, Star Energy’s vice president of geothermal operations.

“If we continuously produce 600,000 tons of carbon a year, we can get $8 million a year,” he said.

“We proposed it to the United Nations a month ago.”

The government has estimated that Indonesia could trade credits from more than 60 percent of the 99 power plants planned for the second phase of its plan to generate an additional 10,000 MW of power.

Star Energy also operates the Kakap oil and gas block in the Natuna Sea, the Sebatik oil block in East Kalimantan, the Sekayu oil block in South Sumatra and the Banyumas oil block in Central Java.

The company also plans to develop a geothermal power plant in Jailolo, Maluku, to supply mining companies operating in the area.

The government is aiming to install 9,500 MW of geothermal generating capacity by 2025.