Masdar makes investment in Pertamina Geothermal Energy

Ulubelu Unit 3 & 4, Lampung, Indonesia (source: Sidiq Nurbiyantoko)

UAE-based renewable energy company Masdar has made a strategic investment in Pertamina Geothermal Energy (PGE), a state-owned geothermal developer in Indonesia. This marks the entry of Masdar into the geothermal market and helps PGE attain their target of 600 MW of additional installed capacity over the next five years.

Masdar, also known as the Abu Dhabi Future Energy Company, is a a renewable energy company based in Abu Dhabi and is owned by the UAE government. The PGE investment is the latest in Masdar’s ongoing effort to expand and increase its strategic partnerships in the Asia-Pacific region, having previously invested in solar power projects also in Indonesia.

“Achieving the 1.5 C 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, 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,” commented HE Dr Sultan Al Jaber, Chairman of Masdar and UAE Minister of Industry and Advanced Technology.

“We 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,” added Ahmad Yuniarto, CEO of PGE.

PGE had previously held an IPO on the Indonesian Stock Exchange. With this, the state-owned company was able to raise USD 579.17 million which the company intends to use for their capacity expansion efforts.

Source: Masdar