Pertamina, Indonesia Seeks to Double its Geothermal Capacity

May 2022

PT Pertamina, Indonesia’s state-owned energy firm, plans to double its geothermal capacity from 700 MW by 2027-2028. The plan, which aims to lessen the country’s reliance on fossil fuels, will cost around USD 4 billion. The Indonesian government is eager to make use of its geothermal resources, which have the potential to create more than 28 gigawatts of power. According to data from the Energy Ministry, the country only has 2.28 gigawatt of installed capacity as of last year.

The development of geothermal energy is part of the government’s aim to boost the share of renewables in the country’s energy mix to 23% by 2025, up from roughly 12% now. Indonesia, which is now one of the world’s top 10 greenhouse gas polluters, also intends to achieve net-zero emissions by 2060.

Pertamina wants to build 210 MW of its targeted additional capacity through investment in a Binary Organic Rankine Cycle (ORC) plant to fasten the progress of its geothermal energy. The investment would cost less and can be built faster since it uses unused brine from existing geothermal wells that might create enough heat to generate greater electricity.

Pertamina is testing a 500 kW binary generator in its Lahendong area constructed less than a year back. The binary power station might cost up to USD 2.5 million per megawatt. Pertamina will also add 500 MW by drilling new wells, costing USD 5-7 million per megawatt.

Meanwhile, Pertamina is willing to collaborate with investors on its geothermal projects. The Pertamina Geothermal Energy (PGE) unit’s initial public offering (IPO) is also said to be underway. A cabinet minister in charge of state corporations stated that an IPO would take place in the second quarter of this year.

(Source: Channel News Asia)


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