Batam (gokepri) – Gallant Venture Ltd. is set to build a $2.7-3 billion power generation complex in Batam, featuring both 2 GW of coal-fired capacity and 400 MW of solar power. This major investment is driven by a surge in industrial energy demand from sectors like AI and data centres, despite the environmental concerns associated with coal.
PT BIC, a major Independent Power Producer (IPP) in Indonesia’s Riau Islands, operates the sprawling 320-hectare Batamindo Industrial Park (BIP). The choice of Batam is strategic: its free-trade zone status and investor-friendly policies have spurred rapid industrial growth. However, this progress has strained existing power infrastructure. Choo Kok Kiong, Executive Director and Company Secretary of Gallant Venture Ltd., highlights that the surge in energy-intensive sectors, particularly AI-driven digital industries and data centres, has outstripped current supply, leading to delays for new investors.
Gallant anticipates Batam’s electricity consumption will rise substantially by 2029, driven by regional economic expansion and the group’s own growth plans, including the expansion of the Bintan Industrial Estate and Bintan Resorts.
Gallant Venture’s existing energy mix relies heavily on natural gas, supplemented by diesel and solar. However, volatile gas prices and limited supply have prompted a strategic shift. The group notes that after evaluating various options, a coal-fired power plant emerged as the most cost-effective solution for large-scale, reliable power.
The proposed 2-gigawatt (GW) coal-fired power plant and a 400-megawatt (MW) solar photovoltaic (PV) farm will be developed in two phases on Pulau Setokok, Bulang, approximately 15 km south of the BIP. Phase one includes three 350 MW supercritical coal-fired units. Phase two will add two 600 MW supercritical coal units and the 400 MW solar farm, alongside submarine transmission cables linking to the group’s other power assets in Batam, Bintan, and Bulan. This gargantuan project, with an estimated cost ranging from $2.7 billion to $3 billion, aims to support the group’s ongoing industrial and resort expansions while reducing dependency on volatile gas prices.
Navigating environmental concerns
Recognising the environmental implications of coal-fired power, particularly greenhouse gas emissions, Gallant Venture states its commitment to mitigation. This includes using supercritical coal-fired technology for improved efficiency and lower emissions, and exploring carbon capture and storage solutions. The solar farm will serve as a supplementary energy source to offset environmental impact, and the group will continue expanding its solar PV capacity across its assets. The company underscores its commitment to regulatory compliance and engagement with local communities and environmental organisations.
The project will be financed through a mix of internal funds, bank borrowings, and potentially the issuance of securities. Gallant Venture expresses confidence that this investment will generate long-term value for shareholders and contribute positively to the group’s sustainable growth.
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