State-owned steelmaker Krakatau Steel plans to build a 40 megawatt (MW) floating solar photovoltaic (PV) power station in Banten to power the operations of its water treatment subsidiary, PT Krakatau Tirta Industri (KTI).

KTI signed a US$14 million deal on Monday with energy company Akuo Energy Indonesia, a subsidiary of Paris-based Akuo Energy SAS, to develop the floating station on its water reservoir in Cilegon, Banten.

Krakatau Steel president director Silmy Karim said the power station would have a 16 MW capacity by 2022 that would cut power bills by Rp 7.8 billion ($537,352.92) annually. The capacity would be raised to 40MW by an unspecified date.

“This partnership is the start of our next business development project in renewable energy with Akuo Energy SAS. This will generate added value for the Krakatau Steel Group that is in line with impr...