Sinar Mas OKI Paper Mill power station

From Global Energy Monitor

OKI Paper Mill power station is a proposed 500-megawatt (MW) coal-fired power plant in South Sumatra Province, Indonesia.


The map below shows the location of Air Sugihan District, the approximate location where the plant would be built, in Ogan Komering Ilir (OKI) Municipality, South Sumatra Province.

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Background on Project

In October 2013, PT OKI Pulp & Paper — a subsidiary of Asia Pulp and Paper, which is in turn a subsidiary of Sinar Mas — said that it had carried out all preparations to build a new $3 billion pulp & paper mill in South Sumatra Province.[1] The mill would apparently include a four-unit, 500-MW coal-fired power plant. The project would be funded in part by a $1.8 billion loan from China Development Bank. Sinar Mas had apparently already acquired land for the site, and received environmental permits.[1] In July 2014, Sinar Mas received tax incentives from the Indonesian government for the plant's construction.[2]

In September 2014, Mitsubishi Hitachi Power Systems (MHPS) received an order for 4 sets of 125 MW class steam turbines and generators for the OKI Pulp and Paper Mills, with shipment slated for September 2015. The steam turbines will provide both electricity and steam for the pulp and paper production processes. The steam turbines will be delivered to the site through China National Machinery Import & Export Corporation, which will provide auxiliary machinery and piping services. Two of the turbines will be assembled and shipped from MHPS's Yokohama works, and the remaining two from joint venture partner Qingsao Jieneng Steam Turbine Group (QJST), located in China's Shandong Province.[3]

As of 2015 and 2016, reports indicate that Sinar Mas would build a 200-MW biomass power plant at the OKI mill. No coal plant is mentioned.[4][5]

In April 2017, an article stated that boiler recovery and bark gasification technology at the paper mill is capable of generating 750 MW of power.[6]

As of June 2017, it appears that plans for a coal-fired captive coal plant have been cancelled.

Project Details

  • Sponsor: PT OKI Pulp & Paper Mills
  • Parent company: Sinar Mas
  • Location: Air Sugihan District, Ogan Komering Ilir (OKI) Municipality, South Sumatra Province, Indonesia
  • Coordinates: -2.758, 105.434 (approximate)
  • Status: Cancelled
  • Gross capacity: 500 MW (Units 1-4: 125 MW)
  • Type: Subcritical with cogeneration
  • Projected in service:
  • Coal type:
  • Coal source:
  • Source of financing:

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