Pertamina Geothermal Energy’s ambitious growth plans
Indonesia's PT Pertamina Geothermal Energy has big plans for the next ten years, including entering the green hydrogen business and growing their installed capacity by more than double
Within the next ten years, Indonesia’s PT Pertamina Geothermal Energy (PGE) is planning to increase their installed capacity to 1,540 MW. This will be more than double the current installed capacity operated by PGE alone. The target is in line with PGE’s aspiration of being a World-Class Green Energy Company.
To date, PGE has an installed capacity of 1,887 MW, 672 MW of which is operated by PGE and 1,205 MW managed with their partners. In 2020, PGE produced 4,616 GWh of electricity which is already 14% higher than their target.
If PGE reaches their target, they will potentially be reducing emissions by up to 9 million tons of CO2 per year by 2030.
Emphasizing the importance of PGE’s contribution to geothermal development in Indonesia, PGE Operations Director Eko Agung Bramantyo said that “the installed capacity of PGE covers 88% of the total installed capacity of existing geothermal facilities in the country.”
One of the steps that PGE has taken to achieve their goal was to form strategic partnerships. As explained by Director of Exploration and Development Tafif Azmudin, PGE has conducted a join study with several potential partners including PLN Gas & Geothermal and Medco Power Indonesia.
We had previously reported on the joint work being done by PT PGE and PT Medco Power on optimizing geothermal development in 7 regions in Indonesia.
Exploring new frontiers
Another new venture that PGE is seeking to enter is the green hydrogen business. As Tafif explained, “Green hydrogen is a new form of energy and is one of the keys in achieving the target of zero emissions.”
As further explained by Tafif, PGE is using a multitrack development approach to geothermal energy. Thus, they are not just looking for steam for electricity generation but also other value-adding opportunities such as green hydrogen.
PGE estimates that the green hydrogen business will require an initial investment of USD 3 million to 5 million. This is only a fraction of the USD 58.62 million budgeted investment that PGE has allocated for 2021. Development of green hydrogen shall also be carried out through strategic partnerships in the aspects of both technology and access to markets.
According to Tafif, PGE is eager to be at the forefront of developing new ways to increase the value of geothermal resources in Indonesia.