Masdar forays into geothermal space with investment in Pertamina Geothermal

UAE-based renewable energy company Masdar has made an undisclosed investment in Indonesia-based Pertamina Geothermal Energy, to mark its foray into the geothermal space.

With the investment, Masdar anticipates to increase its footprint in the Asia-Pacific region and gain access to the world’s second largest geothermal market.

Pertamina Geothermal Energy, with a portfolio capacity of more than 1.87GW, has operated geothermal plants in Indonesia for the last 40 years.

Dr Sultan Al Jaber — Masdar Chairman and UAE Industry and Advanced Technology Minister said: “Achieving the 1.5C target set out in the Paris Accords will require humanity to leverage all sources of low-carbon energy, including sources that are currently under-utilized, like geothermal.

“Through its investment in PGE [Pertamina Geothermal Energy], Masdar is demonstrating its continuing commitment to Indonesia’s energy transition and its support of one of the major focus areas of the upcoming COP28, which is to provide practical energy security solutions while reducing emissions.”

Masdar makes undisclosed investment in Pertamina Geothermal Energy. Photo courtesy of MASDAR.

Pertamina Geothermal Energy anticipates to develop 600MW in additional installed capacity over the next five years to support Indonesia’s renewable energy mix.

Mohamed Jameel Al Ramahi — Masdar CEO said: “We are especially excited to add geothermal energy to our clean energy portfolio, a clean energy source that can deliver dispatchable power 24 hours a day, which further underscores our position as a global leader in delivering clean energy solutions that help drive the global energy transition.”

With a goal of increasing installed geothermal capacity from 2.8GW in 2022 to 6.2GW by 2030, Indonesia targets to become carbon neutral by 2060.

Masdar is also developing the 145MW Cirata Floating Solar PV Plant in Indonesia.

Last year, Masdar entered into an agreement with Tuas Power, EDF Renewables, and PT Indonesia Power to explore the development of up to 1.2GW solar capacity in Indonesia.

Masdar plans to accomplish 100GW renewable energy capacity and one million tonnes of green hydrogen production annually by 2030 to support UAE’s Net Zero by 2050 Strategic Initiative.