MANILA: The Asian Development Bank (ADB) on Tuesday signed a financing agreement of 92.6 million U.S. dollars with PT Supreme Energy Muara Laboh (SEML) to develop Indonesia’s geothermal power resources.

“This will be done by expanding the geothermal facility at Muara Laboh in West Sumatra, while supporting the construction, operation, and maintenance of a new geothermal power plant with an approximate capacity of 83 megawatts,” the ADB said.

Since 2013, the ADB has leveraged its extensive experience in financing four geothermal transactions in Indonesia. The Manila-based bank has supported private sector finance operations for projects including Muara Laboh Stage 1, Rantau Dedap, and the Sarulla geothermal power project.

Indonesia has the world’s largest geothermal energy reserves, estimated at 23.1 gigawatts. Its abundant geothermal resources have led the government to prioritize the development of geothermal plants.