China’s Shenhua Overseas Development and Investment and the Indonesian coal miner Adaro Energy have signed a memorandum of understanding (MOU) to develop a 2×300 MW coal-fueled thermoelectric plant in East Kalimantan province, Indonesia.

Under the deal, the two companies will establish a joint venture to develop the power plant, with Shenhua set to hold a 51 percent stake and Adaro, 49 percent.

Adaro Energy said it will ensure coal supplies for the plant, which is expected to meet increasing power demand in Kalimantan once it becomes operational.

The MoU is among the 12 economic agreements reached by the two countries on the sideline of the 22nd Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Meeting in Beijing, China.-VNA