A geothermal energy generation project in western Indonesia has been given a financing package worth $109 million (£87m).
The Muara Laboh project, located in West Sumatra, is expected to generate 80MW of electricity.
It will be one of the first transactions to receive funding from the Asian Development Bank’s (ADB) newly-established Leading Asia’s Private Infrastructure Fund (LEAP).
According to the ADB, Indonesia has around 40% of the world’s geothermal reserves, making it an important resource for the country to achieve its goal of cutting carbon emissions by 29% by 2030.
Yuichiro Yoi, Senior Investment Specialist in ADB’s Private Sector Operations Department said: “This project demonstrates Indonesia’s commitment to meet increasing demand for electricity and support the development of renewable energy. This transaction proves that the private sector will play a critical role in helping the country achieve both of these targets.”
Last year, researchers at a Scottish university won more than £165,000 to support a marine energy centre in Indonesia.