State-run cement producer Semen Indonesia kicked off on Wednesday the construction of a 30.6 Megawatt (MW) power plant in an effort to reduce the company’s electricity costs.
Located at its cement factory in Tuban, East Java, the power plant will cost the company Rp 638 billion (US$52.95 million) in investment. The power plant will make use of the heat generated from the cement factory.
The construction of the waste heat recovery power generator (WHRPG) is scheduled to take 26 months. It is expected to start operating in the second half of 2016.
Last year, Semen Indonesia signed a memorandum of understanding (MoU) with Japan-based JFE Engineering Corporation for the WHRPG construction.
“This will be the first project in Indonesia where waste heat in the whole area is utilized to supply the power plant,” Semen Indonesia president director Dwi Soetjipto said in a written statement.