National EPC Companies in Geothermal Industries for Indonesia Development Support (19042013)

Geothermal development could be divided into two main stages there are exploration stage and
utilization stage. Utilization stage still could be classified into two phases, construction phase and
operation phase. Exploration stage shall be consisted of preliminary survey until production drilling
in upstream area. Otherwise utilization stage as a downstream area is continuing production drilling
result by construction line flow of steam into a power plant usually called Steam Above Ground
System (SAGS) or Steam Field System (SFS) of Fluid Collection and Reinjection System (FCRS) and a
Power Plant that converts energy inside the steam into electrical energy which called Geothermal
Power Plant (GPP).

Construction phase for both SAGS and or GPP shall be carried out by an Engineering, Procurement,
Construction (EPC) company started by design until the plant reach commercial Operation Date
(COD). As a national EPC company, PT. Rekayasa Industri (Rekind) seen geothermal energy is one of
the clean energy that is suitable for future energy specially in Indonesia that possess more than 40%
of world geothermal energy resources. Rekind therefore keen to enter this field with expertise,
competence, and trust of customers, Rekind started its active role in the development of geothermal
energy in 1993.

Starting with only a portion of the construction work of SAGS on GunungSalak Geothermal Project,
then the Rekind scope of work in several years extends to the field of Engineering still in SAGS area.
After a few SAGS projects are completed, the project field develop into area of Power Plant. Year
2002 was an entry point for Rekind which is working on EPC scope in geothermal field. The project
namely Dieng 1 Geothermal Power Plant Project 1 x 60 MW owned by the California Energy Ltd.
Himpurna. Until now a total of 640 MW of electrical energy related with geothermal that has been
involved Rekind in the process of construction. Other active role undertaken by Rekind for
geothermal energy development such as its involvement in the development of back pressure
turbine research, provide inputs for the government to determine policies and rules, play an active
role in the association community professionalism, etc.
1. Introduction

Environmentally-friendly energy such as geothermal developed as alternative energy since fossil

energy reduced in resources lead to price increase and also supported by global climate change
energy caused by fossil energy utilization specially popular case such as greenhouse effect. Energy
demand can not be avoided in parallel with economic growth, hence drive the people to look for
alternative energy instead of fossil energy that able to reduce greenhouse effect, friendly to
environment and able to be renewed.

Geothermal energy as one of energy type that meet the requirement of alternative energy is
developed also. Geothermal development for electricity utilization has begun in latest century as an
environmentall-frienldly energy supplier exactly in 1904 in at Lardarello, Tuscany region Italy
although just only generated as electrical power in form of five light bulbs using simple mechanical
device by converting solely dry steam.

Utilization of geothermal energy is not as simple as said but should be developed in quite complex
process flow, one of them is construction total geothermal power plant (GPP) by an EPC company. In
construction stage, it could be described some major activities involving an EPC company. Later will
be described how and where EPC company can contribute and has active role for geothermal energy
development in Indonesia, a biggest country in having more than 29 GW or more than 40% of
geothermal energy potential in the world.

2. Geothermal Development

According to SNI 13-5012-1998: Classification of geothermal energy potential in Indonesia, the flow
of geothermal field development activities described in more detail into:

 Preliminary survey
 Advanced preliminary survey
 Detailed survey
 Drilling of exploration wells and Pre Feasibility study
 Drilling of exploration wells and Feasibility study
 Development Drilling
 Exploitation / Utilization

Development of Geothermal Field above if summarized could be as follows:

 Preliminary Survey
 Exploration and Drilling
 Feasibility study
 Exploitation

The latest geothermal development summary above perhaps be squizzed also as below:

 Exploration
 Exploitation / utilization
Exploration activities include preliminary survey, advanced preliminary survey, detailed survey,
drilling of exploration wells to development drilling. Exploration stage is characterized by the
availability of production wells are ready to supply steam from the wellhead for a targetted plant.

While exploitation / utilization includes the construction of plants untill its operation. Facilities of
plants generally consist of two parts, namely the steam flowing from wellheads to turbine and
processing of energy in that steam into electrical energy that shall be available for supplying to
electrical power grid. Milestone of electricity availability be supplied to the network grid according
to plan called the Commercial Operation Date (COD) and this marks the readiness of plant facilities
to operational stage.

On this occasion, the discussion will focus on the construction phase of the plant facilities up to the
stage of COD. There are two main facilities in a geothermal system which is facility to flow the
steam (steam flow facilities) and geothermal power plants themselves. Steam flow facilities in a
practice known as some of the terms such as:

1. Steam Above Ground System (SAGS)

2. Steam Field System (SFS)
3. Fluid Collection and Reinjection System (FCRS)

Mostly equipment installed in this area is pipes, complemented by instrumentation and electrical
equipment to support the function of the pipeline to flow the steam and also some mechanical
support equipment such as condensate pots, pumps, separators, demister, etc. Main component in
the area SAGS are pipes and its support, separators, demisters and rock mufflers.

Whereas geothermal power plant known by the term of Pembangkit Listrik Tenaga Panasbumi
(PLTP) / Geothermal Power Plant (GPP) that consists of several major equipment including: Steam
Turbine Generator, Condenser, Cooling Tower, Pumps, Switchyard, Main Transformer, Gas Removal
System (GRS) and Control System.

The construction of a geothermal power system both at the SAGS and GPP conducted by a n
Engineering, Procurement, Construction and Commissioning (EPCC) company. Development
schemes could be made Total GPP Project comprising SAGS scope and GPP or separation SAGS-GPP
and each can be done by EPCC company different or the same.

As a national EPCC company, Rekind had been widely have a role in the development of geothermal
power plants in Indonesia. The role that can be given by Rekind as an EPCC company consists of:

1. Building of Geothermal Power Plant System including design.

2. Association
3. Government
4. Research and Development
5. Owners and operators of Geothermal Power Concession area
6. Operator & maintenance
2.1 Building of Geothermal power plant

Rekind have been in the field of geothermal energy since 1993. Role provided in that year was still
relatively small, only in the field of construction only and even then only in areas of SAGS of Gunung
Salak Geothermal Field. Engaged to the role from the previous construction experience, the role of
next year was developing by getting more servings into Engineering section in other fields. Small
portions Experience is a provision to provide a wider role into the scope of Engineering,
Procurement & Construction (EPC) in 2002 at Dieng field, who was owned by Himpurna Cal. Ltd. This
is the first time for Rekind to have experience as EPC company in Geothermal field.

Having had the experience on the scope of the EPC, has been given a significant role in the
development of Geothermal Energy in Indonesia. Totally, Rekind involvement in the geothermal field
up to now has reached 640 MW from 1319 MW total installed GPP in Indonesia, more than half the
capacity of GPP as could be found at Table 1. Most major role in the EPC for the development of
Geothermal Energy Geothermal Project in Total Kamojang 4 with a capacity of 60 MW. This is a
breakthrough in Indonesia Geothermal industry that has managed to build GPP by Indonesian
engineers. Local Content on this project more than 30 percent, however the performance of the
generated power can satisfy the project owner, PT. Pertamina (Persero). Three-D picture of
Kamojang 4 GPP models as seen in Figure 1.

In terms of technology, the role of the Geothermal field applicationin accordance with the
conditions of most of Indonesia's Geothermal reservoir-type that is water dominated . Even so,
Rekind role in the development of GPP presitisius in the world by building GPP WayangWindu 1 & 2
which has capacity of the largest unit in the world up to the present paper is written in the amount
of 110 MW per unit that has a type of reservoir water dominated.

Figure 1. Three-D Model of Kamojang 4 GPP Project

2.2. Promiscuity in association

Cohesiveness of geothermal community to advance geothermal development in Indonesia is really

needed. The segment consists of the geothermal industry players and stake holders of geothermal
widely and outlined could be classified as following :

1. Government in particular Ministary of Energy, Mineral and Resources

2. Buyers of electric energy in this case is PLN
3. Equity provider and services company financing
4. Owner of WKP as field Operators and owners of EPC projects GPP
5. EPCC company
6. Drilling and exploration company
7. Consultant
8. Manufacture, fabricator and vendor specially for proprietary equipment such as
Geothermal Turbine Generators
9. Academics community

Active participation Rekind as EPCC Company was started by registrating to membership of the
International Geothermal Association (IGA),Asosiasi Panasbumi Indonesia / Indonesian Geothermal
Association (API/), Masyarakat Ketenagalistrikan Indonesia/ (MKI/), Masyarakat Energi Terbarukan
Indonesia / Indonesian Renewable Energy Society (METI/IRES), Persatuan Insinyur Indonesia /
Indonesian Engineers Association (PII/), and other related associations. In these association, more
active participation given by Rekind are sharing knowledge and experience due to Rekind EPCC is the
most experienced company in Indonesia specially for GPP Projects in form a presenter including also
paper writer and involved in problem solving related with geothermal development.

2.3 Assist the government in the development of Geothermal Energy

As a state owned company, Rekind is also required to support the Government of Indonesia (GOI) in
Geothermal Energy Development for creating rules. GOI has an ambitious to optimize the huge
geothermal potential in Indonesia from upstream to downstream. Financial section Relating with
investor as equity provider and also financial project. Tender of WKP deals with WKP
holder/developer and or operator of GPP, and also EPCC company to serve fairness bidding. Price of
Geothermal Electricity should be govern also considering investor attractiveness, people ability to
pay/buy and also tax income to government.

Rekind is capable Considered by government to formulate the rule in geothermal rule in Indonesia
due to the experience in GPP Project. More than half of installed GPP project in Indonesia has been
built by Rekind and has been succeeded. This successful not only recognized by the project owner,
the government, geothermal and other local community but also from the international level. This
could be seen by trust and invitation to cooperation with international company such as Japanese
turbine manufacturer and World Class Trading Company.

2.4 Research and Development

Based on experience and supported by expert owned by Rekind, Research to develop Geothermal
utilization in Indonesia is one of the additional section where Rekind has active role. Cooperate with
BPPT (Badan Pengkajiandan Penerapan Teknologi), a board of Indonesia that has an elite area that is
assigned to conduct research and implement the technology, Rekind review engineering design and
assit to feed the comment how to built small scale geothermal direct condensed power plant. This
plant has capacity of 3 MW located in Kamojang West Java. This project has also involved Pertamina
as the owner of concession area (WKP). In the future, Rekind also has an ambition to conduct
research design optimization of GPP and perhaps some of special Instrumentation equipment in
Geothermal Power Plant.

2.5 Owner and operator of Geothermal WKP

This role portion actively given by Rekind for Geothermal Development is to be an owner and also
will operate Geothermal Concession area (WKP Panasbumi). Currently, Rekind possess one
Geothermal WKP at Cisolok Sukabumi which capacity is estimated around 140MW of possibility
resources. To focus on this role, Rekind create subsidiaries company join with a local state owned
company. With the capability to fast learned and suported by lot of experiences in Geothermal
development, some work flow of geothermal development has been done well. Just within several
months, led by experienced Rekind’s person in geothermal three workflow has been conducted.
They are Preliminary survey, Advanced preliminary survey and Detailed Survey. These flows has
produced a conceptual model of Cisolok Cisukarame geothermal system as could be seen in figure 2.
Currently, next step is being calculated and considering of exploratory drilling that requires carefully.
Parallelly with consideration and calculation, it is needed to renegotiate about electricity price to
reduce economic risk based on technical data found on survey and also above conceptual model
generated.

2.6 Operator and Maintenance

This last portion is being conducted lately for one of World class energy company in Gunung Salak as
one of Geothermal field owned by Chevron. This portion is a an enlargement experienced based on
experiences in EPC geothermal area and experiences as a Operator and Maintenance in Oil Gas area.
This surely as an enlargement and high claimed that role portion of Rekind in geothermal is the most
complete.

Figure 2. Conceptual model of CisolokCisukarame Geothermal System

Generally as corporation, Rekind portion that actively done for geothermal development could be
said reverse work flow of normal geothermal development stage. As presented earlier above, work
flow of a geothermal development as begun by preliminary survey and almost finalized by
construction of a GPP and the last stage is operation and maintenance in daily utilization stage.
Rekind experience in Geothermal development obtained by doing last part of EPC stage that is
Constraction ( C), then shifted reversely to experience in Procurement and Construction (PC) then
become experience in Engineering, Procurement and Construction (EPC) company. This historical
flow of experience could be found on Figure 3.

Figure 3.Rekind Contribution evolving in geothermal development

CONCLUSION

1. Geothermal development work flow of one area as mentioned in SNI 13-5012-1998 consist
of seven flow they are preliminary survey, advanced preliminary survey, detail survey,
exploration drilling and Pre Feasibility study, exploration survey and Feasibility study,
development drilling and exploitation or utilization.
2. Active role of Rekind as an EPC company in Indonesia geothermal development is more than
just in EPC area but spread technically, commercially and social aspect. This lead Rekind
deserved to claim the practician expert in Geothermal Development in many areas.
References :

1. Dipippo, Ronald, Geothermal Power Plants : Principles, Applications, Case Studies and
Environment Impact, Massachusets, Elsevier, 2nd Edition, 2008
2. Internal Rekind Data, Jakarta (unpublished)