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Pertamina Inks agreement to optimize geothermal power plant capacity in Indonesia

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Pertamina Inks agreement to optimize geothermal power plant capacity in Indonesia

This article was first published on Rigzone here

PT Pertamina Geothermal Energy Tbk (PGE) has signed a joint development agreement with PT PLN Indonesia Power (PLN IP) to optimize the capacity of several geothermal power plants in Indonesia, PGE said in a press release.

According to Julfi Hadi, president and director of PGE, the deal is a strategic step toward increasing synergy between two major Indonesian players. Furthermore, it is in line with the company’s goal of reaching one gigawatt of installed capacity.

“The signing of this JDA demonstrates our strong commitment to increasing the use of Indonesia’s abundant geothermal resources to support the acceleration of the national energy transition, the government’s commitment to the Enhanced National Determined Contribution and the Net Zero Emission Program to be achieved in Indonesia. We believe this collaboration will accelerate the development of more efficient and sustainable geothermal projects as one of PGE’s strategic efforts to reach 1 GW in the next two years,” said Julfi.

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Earlier this year, the two companies agreed to jointly study cogeneration projects in two geothermal operating areas.

“The initial target for the development of PLTP Co-Generation (Binary Plant) is in the PLTP areas of Ulubelu Binary Unit and Lahendong Binary Unit, potentially adding 30 MW and 15 MW of installed capacity respectively,” PGE said.

The pair have also agreed to finalize the power purchase agreement quickly. This will accelerate the construction and commissioning of these projects.

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