UAE-based investment company to finance its first geothermal project in Southeast Asia by investing in PGE. Yes, Masdar invests in Indonesian geothermal energy company Pertamina.
Masdar, a clean energy company from Abu Dhabi, Dubai invested in state energy firm Pertamina Geothermal Energy (PGE), Indonesia. This investment marks the entry of Masdar into the geothermal energy sector in Southeast Asian countries. The geothermal sector in Southeast Asia is considered the second largest after the United States.
Though the size of investment is yet to be revealed Minister of Industry and Advanced Technology, President-designate for the 2023 UN Cop28 climate change summit, Dubai, and Chairman of Masdar Dr. Sultan Al Jaber said, â€œAchieving the 1.5ºC 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.â€
Indonesia is planning to generate 51% of its total energy by 2030 solely from renewable resources. Another aim includes becoming carbon-free by 2060 or as soon as possible with 85% of energy from renewable resources. PGE President Director, Ahmad Yuniarto said, â€œWe look forward to working with Masdar in the areas which complement and grow further our capabilities to be a world-class green energy company, with the largest geothermal capacity globally.â€
PGE operating for 4 decades in Indonesia, has a portfolio capacity surpassing 1.87 gigawatts and out of this 1,205 MW is managed under joint operation contracts. The remaining capacity is owned by PGE and by 2027 the company is planning to raise it to 1,272 MW. However, the government expects a boost in the entire geothermal capacity of the country from 2.8 GW to 6.2 GW by 2030. â€œWe endeavor to develop 600 megawatts in additional installed capacity over the next five years to support Indonesia’s renewable energy mix,â€ Ahmad Yuniarto further added.
Also, UAE special envoy for climate change, managing director, and group chief executive of Adnoc Dr. Jaber added, â€œThrough its investment in PGE, 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.â€ Masdar in 2022, announced the creation of a green hydrogen business unit after a deal with Taqa, Abu Dhabi National Energy Company (Adnoc), and Mubadala Investment Company.
Chief executive of Masdar, Mohamed Al Ramahi said, â€œMasdar’s strategic investment in PGE will complement our already strong footprint in Indonesia. We are especially excited to add geothermal energy to our clean energy portfolio â€¦ which further underscores our position as a global leader in delivering clean energy solutions that help drive the global energy transition.â€
In December 2022, Mitrabara and Masdar formed a joint venture for providing renewable energy solutions and presently Masdar is already active in Indonesia. The Dubai-based company also formed a joint venture in 2020 to develop the first floating solar project in the country with PT PJBI, a subsidiary of the state electricity company, Indonesia.
Now, as a part of the deal made last year, Masdar is all set to expand aggressively with a major share coming from wind and solar technology the company has a set aim of renewable energy capacity target of about 100 gigawatts by 2030 and by the end of decade hydrogen production of around 1 million tons per year. Masdar Invests in Indonesian Geothermal Energy Company Pertamina will be a step towards their combined aim of a carbon-free and green future.