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Monday, 27 February 2023

Masdar acquires a stake in Indonesian geothermal firm Pertamina

Masdar makes an entry into geothermal energy: Emirati renewables giant Masdar has acquired shares in the geothermal unit of Indonesia’s state-owned energy firm Pertamina, according to a company statement. The value and size of the stake were not disclosed.

About Pertamina Geothermal: The state-owned energy company is one of the world’s largest producers of geothermal energy. It currently owns nearly 82% of Indonesia's installed geothermal energy capacity, and manages 13 geothermal energy projects which generate 1.87 GW of electricity, according to its website.

Targets: Pertamina wants to generate an additional 600 MW of geothermal power by 2028 in line with the country’s target to source 23% of their energy needs from renewables by 2025, according to the statement. Indonesia is expected to increase geothermal production volume to 3.4 GW in 2023, up from 2.8 GW in 2022, according to Pertamina estimates.

This is not Masdar’s first entry into Indonesia’s renewables sector: Masdar signed a power purchase agreement with the country’s electricity company, Perusahaan Listrik Negara, for a 145 MW Cirata floating solar power plant in 2020. More recently, it signed an agreement last year to co-develop solar energy projects worth 1.2 GW with Tuas Power, EDF Renewables, and PT Indonesia Power with an eye on exporting the energy to Singapore.

The company just opened an office in the country: Masdar opened an office in the Indonesian capital last week as it continues to expand its presence in the region.

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