REPUBLIKA.CO.ID, JAKARTA -- PT Semen Indonesia (Persero) Tbk will build an environmentally friendly power plant at a cost of Rp638 billion in Tuban, East Java.

The state owned cement producer will team up with JFE Engginering Corporation of Japan, to build a Waste Heat Recovery Power Generation (WHRPG) plant which will have a capacity of 30.6 megawatts.

An agreement on the project was signed here on Tuesday by Dwi Sutjipto the president director of Semen Indonesia and Tetsuo Tsuyuguchi the Managing Director of JFE.

Dwi said the WHRPG power plant would allow the company to reduce the use of around 152 million kWh of electricity per year from the state electricity company PLN or saving Rp120 billion a year.