In a remarkable move, PT Pertamina Geothermal Energy Tbk (PGE), Chevron New Energies International and Mubadala Energy recently announced a collaboration to study and exploit geothermal potential in Indonesia. Indeed, this initiative, formalized by a Joint Study Agreement (JSA), marks a strategic turning point in Indonesia’s quest for cleaner, more sustainable energy.
Objectives and scope of the JSA
The JSA, signed during President Joko Widodo’s visit to the United States, brings together key players in the energy sector. Among them, the Indonesian Ministry coordinating Maritime Affairs and Investment, the Ambassador of the Republic of Indonesia to the United States, as well as executives from PGE, Chevron Indonesia, and Mubadala Energy. However, this cooperation underlines the growing importance of geothermal energy as a renewable energy source, and aligns the efforts of various international players with Indonesia’s energy transition objectives.
Contribution of Geothermal Development Partners
PGE, as Indonesia’s leading producer and owner of geothermal capacity, brings its expertise and scale to this partnership. In addition, Chevron, renowned for its multinational energy capabilities and commitment to cleaner energy, and Mubadala Energy, with its track record of providing reliable and efficient energy in Indonesia, complete this dynamic trio.
Potential of WKP Kotamobagu
The agreement sets out a framework for a joint study on the development of the Kotamobagu Geothermal Working Zone. The project is part of the Indonesian government’s strategy to increase the country’s installed geothermal capacity by 3.3GW by 2030. The electricity generated at Kotamobagu could not only supply the Indonesian domestic market, but also be used to produce hydrogen or low-carbon ammonia.
Julfi Hadi, President Director of PGE, expressed his enthusiasm for the collaboration, underlining the common goal of developing geothermal energy in Kotamobagu by exploiting the complementary strengths of all three parties. Wahyu Budiarto, Director of Chevron Indonesia, highlighted Chevron’s technical expertise and new geothermal technologies as key contributions to the partnership. Mansoor Mohamed Al Hamed, CEO of Mubadala Energy, reinforced his company’s commitment to the energy transition and its support for Indonesia’s carbon neutrality goals.
The collaboration between PGE, Chevron and Mubadala Energy opens up new prospects for geothermal development in Indonesia. This initiative, aligned with the country’s energy transition goals, promises to transform Indonesia’s energy sector, while contributing to global efforts for cleaner, more sustainable energy.
