In Energy and Overseas Business, one of the NiX Group’s growth business domains, we are promoting energy businesses such as hydro power generation, solar power generation, and EV business in Indonesia, utilizing the hydro and solar power generation technologies developed in Japan. We are also promoting new investment businesses such as LPG filling and sales, cash management, and ceramics. By strengthening the development of energy business in Indonesia, we will continue to contribute to the realization of a decarbonized society in both Indonesia and Japan and become a company that plays a key role in a sustainable society.
In April 2019, we established PT. NiX Indonesia Consulting, an Indonesian subsidiary whose main business is hydro power, solar power, and other energy businesses in Indonesia. We have Indonesian engineers with extensive experience in hydro power design and construction of civil engineering facilities. In our own hydro power projects, as owner's engineering, we incorporate BIM/CIM technologies such as 3D and 4D to implement high-quality project management.
Further, through long years of business development in Indonesia, information on business investment has increased, and to make it a new pillar of growth, PT. NiX Capital Indonesia was established in January 2023 as a local corporation that 100% capitalized by the NiX Group. The company is engaged in business investment and investment advisory business mainly in Indonesia. Backed by Indonesia's remarkable economic growth, the company has a large number of investment pipelines and is implementing a series of investments utilizing the NiX Group's “technology, funds, and human resources” and its investment track record to date.
PT. NiX Indonesia Consulting, with its main business in energy business engineering, and PT. NiX Capital Indonesia, with its main business in investment, will collaborate to expand business in Indonesia and promote the enhancement of the NiX Group's corporate value, backed by the Group's strengths in investment and technology.
Tongar Hydro Power Plant (6,200 kW) is located in the Tongar River Basin, approximately 200 km from Padang City, West Pasaman Regency, West Sumatra Province, Sumatra, and began commercial operation in November 2023. Since its operation, the plant has continued to generate more electricity than expected and has been operating stably despite being an overseas project.
The annual electricity sales amount is 38.73 GWh, which is equivalent to approximately 46,000 ordinary Indonesian households, and the generated electricity will be sold to PT.PLN (hereinafter “PLN”), Indonesia's state-owned power company, for the next 25 years.
Tongar hydro power project is conducted by group company PT. Optima Tirta Energy (hereinafter “OTE”), a special purpose company, and is NiX Group's first overseas hydro power project with its own hydro power plant. This is also a highly unique case of a Japanese company developing its own hydro power plant in Indonesia as a majority stakeholder. Currently, OTE employs local personnel as resident employees to operate and manage the power plant with a staff of 25.
This project had been developed independently by Indonesian companies since 2013, including the acquisition of various rights and the conclusion of a power purchase agreement with PLN; however, the project had stalled because of technical and financial problems. Through technical optimization and project financial support by NiX Group's Indonesian subsidiary PT. NiX Indonesia Consulting and NiX JAPAN, those problems were resolved, and the project was commercialized.
In November 2016, we established PT. Lebong Sukses Energi as a joint venture with an Indonesian company and began development of the Ketaun Hydro Power Plant (13,000 kW) in Bengkulu Province, Indonesia. In March 2019, the project passed the DPT examination (power supplier qualification examination) by PT. PLN, Indonesia's state-owned power company. As a power supplier, the project will now proceed to negotiate a power purchase agreement (PPA) and to implement construction work.
The plant is a run of river power plant with a maximum output of 13,000 kW, a net head of 41.7 meters, and a maximum flow rate of 36 m3/s.
The estimated annual power generation is 86.4 GWh, which should supply 100,000 Indonesian ordinary households.
The weir long is 52.2 m and 5 m high above the riverbed. Two sediment discharges of 1.90 m width are provided to discharge accumulated sediment and stones.
The intake has four gates, each 2.75 m wide and 3 m high, which can be operated mechanically. Water is taken in through the intake and flows through a 106-meter-long channel to the setting basin.
The head pond is installed just before the penstock. This facility provides a stable design flow rate to the penstock, resulting in stable power output.
The powerhouse is to be located on the right bank of the Ketaun River. The power plant is 45 m long and 23 m wide and can accommodate two horizontal Francis turbines of equal output, generators, flywheels, control room, and more. The power plant will be constructed of concrete. The switchyard is located behind the power plant.
Through NiX New Energy Co., Ltd., we established a joint venture company, ALAM NIX RENEWABLES Pte. LTd. in Singapore with Alamport Inc. (Chiyoda-ku, Tokyo), and entered the rooftop solar power generation (third-party ownership model) business for factories in the Republic of Indonesia.
Rooftop solar power generation (third-party ownership model) business is a business model in which an electric power supplier installs and operates a solar power generation system on the roof or premises of a customer's facility free of charge, and the customer purchases the electricity generated and pays a usage fee to the supplier. Customers can reduce initial costs and the burden of maintenance management and can use clean renewable energy sources that are inexpensive and have high environmental value, which has attracted attention in recent years as a new power supply method.
Starting with the first project of 1,700 kW for a pharmaceutical factory of an Indonesian listed company in September 2021, this business has been expanding mainly for Japanese-affiliated factories and has now grown to a scale of approximately 25,000 kW of assets including those already under contract. We plan to develop the business with a target of 50,000 kW equivalent over the next several years.
We aim to become a major player in this scheme in Indonesia and contribute to making Indonesia carbon neutral through the promotion of renewable energy.
In Indonesia, LP gas consumption has been steadily increasing year by year because of population growth and the Indonesian government's program to convert kerosene used in ordinary households to LP gas.
On the other hand, many of the LP gas products that dominate the domestic market are of low quality or have a discrepancy between stated and actual volumes, increasing the demand for high-quality, accurate fill volume LP gas products.
For this project, we have established PT. Arsynergy NiX Indonesia in March 2023 as a majority-owned company with Indonesian partner company that owns and operates LP gas plant in Indonesia through NCI. A gas filling plant was constructed in Gresik Industrial Park in Surabaya, and filling and sales began in April 2024.
The company sells its products mainly in the JABODETABEK area in East Java through direct sales and more than 20 distributors and is expanding its business area with the aim of achieving annual sales of approximately JPY2 billion.
The business is characterized by accuracy and differentiates itself from existing businesses in the following ways:
The business is expected to progress steadily backed by strong demand, and we aim to achieve our sales target as soon as possible.
In the second phase, we plan to further expand our business and enhance our technology with a view to working with Japanese LP gas operators and related manufacturers.
We acquired a 14% stake(Initially, 20% stake) in Green Power Management, a company that promotes the sale and rental of motorcycles and the operation of battery stations in Makassar, Indonesia, and made a capital participation. The company oversees PT. Santomo Green Power Management, an operating company under its umbrella, and promotes the battery as a service (BAAS) business.
Indonesia is the largest motorcycle market in Southeast Asia, and with the government actively promoting electrification to achieve a decarbonized society, We already sell and rent electric motorcycles in Makassar, and we have the top market share in the area. Also, built a network of over 60 battery stations.
Battery-replaceable electric motorcycles are not only environmentally friendly but also offer the convenience of battery replacement in about 9 seconds and a running cost about 50% less than a gasoline-powered motorcycle, making them economical, convenient, and environmentally friendly at the same time. It is expected that the shift from gasoline motorcycles to electric motorcycles will gradually take place.
With the aim of helping Japanese companies expand their business overseas and alleviate electricity shortages in un-electrified local areas, we participated in this project as external human resources. In collaboration with Toyama City and companies within the city, we installed four water turbines in Tabanan, Bali, as an irrigation channel-compatible small hydro power generation system using the existing irrigation channel network. We also provided technical training to local residents to ensure self-sustaining and maintainable operations and proposed a model for sustainable, widespread introduction of the system that can be used in other regions.