PGE and Medco agree on geothermal development partnership
State-owned PT Pertamina Geothermal Energy and private PT Medco Power International sign partnership on geothermal development in Indonesia.
As reported this month, Indonesian PT Pertamina Geothermal Energy and PT Medco Power Agree to Develop Geothermal Together PT Pertamina Geothermal Energy (PGE) signed a Head of Agreement (HoA) study together with PT Medco Power Indonesia (MPI) in the context of developing geothermal power plant projects in the projects of the two companies spread across Indonesia.
As reported this month, Indonesian PT Pertamina Geothermal Energy (PGE) signed a Head of Agreement (HoA) study together with PT Medco Power Indonesia (MPI) in the context of developing geothermal power plant projects in the projects of the two companies spread across Indonesia.
The signing was held on Friday December 31, 2021 which was attended by PGE President Director Ahmad Yuniarto and MPI President Director Eka Satria, as well as the management of the two companies. Ahmad Yuniarto, President Director of PGE, said that the cooperation between the two companies is very necessary to develop geothermal in the country, and to support the government in achieving the target of electricity based on renewable energy.
“The signing of this joint study is a follow-up to the joint collaboration kick off meeting that has been carried out by both parties with the aim of optimizing geothermal development with a capacity of 495 MW,” said Ahmad Yuniarto, quoted on January 1, 2022.
He said, PGE and MPI will analyze and conduct further studies of development scheme options for each individual geothermal project that has been determined, as well as further evaluate the economics of the joint business model. In addition, this cooperation includes the establishment of timelines and milestones starting from the stages of exploration, exploitation, to operation on each project that has a positive impact on both parties by prioritizing compliance with compliance aspects .
He explained, PGE continues to be committed to geothermal development and ensures the implementation of Environment, Social, and Governance (ESG) to become an integrated part of PGE’s geothermal business. The implementation of these ESG aspects is an effort to provide added value, as well as PGE’s support for government programs related to the use of new and renewable energy (EBT), which is environmentally friendly, especially geothermal.
Meanwhile, MPI President Director Eka Satria said that his party is committed to continuing to support energy development in the geothermal sector in order to accelerate the achievement of clean and environmentally friendly energy.
“This step is part of Medco Power’s commitment to support the energy transition to NRE. Indonesia has the largest geothermal potential reserves in the world that can be developed and become the spearhead in meeting the national clean energy needs, especially because of excess geothermal energy which can be used as an energy baseload,” he said.
He said MPI is committed to continuing to support energy development in the geothermal sector in all aspects, including health , safety , security , and environment , in order to accelerate the achievement of clean and environmentally friendly energy, as well as play a role in supporting government programs. The collaboration itself includes a geothermal project development study, and will be carried out at the PGE and MPI Projects over the next 24 months. This study is expected to accelerate geothermal development.