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Pertamina unit to spend US$2.5 bln by 2019 to develop geothermal power plant projects

JAKARTA (rambuenergy.com) – State owned oil and gas company PT Pertamina, through its subsidiary Pertamina Geothermal Energy (PGE) plans to invest up to US$2.5 billion to develop a combined 1,026 MW of geothermal power plant projects – from drilling to developing geothermal power plants – until 2019, President Director of Pertamina Dwi Soetjipto said.

He said developing geothermal projects has become one of Pertamina’s priorities.

He made the statement after the inauguration of its geothermal power plant PLTP Kamojang Unit 5 on Sunday (July 5).

In addition to Kamojang Unit 5, Pertamina is also developing a number of geothermal projects, namely Karaha (1×30 MW) in West Java, Ulubelu Unit 3 & 4 (2×55 MW) in Lampung, Lumut Balai 1 and 2 (2×55 MW) in South Sumatera, Lahendong Unit 5 and 6 (2×20 MW).

Pertamina Geothermal Energy is also developing small-size geothermal power plants, namely PLTP Lahendong 2×5 MW in North Sulawesi, PLTP Sibayak 1×5 MW  in North Sumatera, Hululais Unit 1 and 2 (2×55 MW) in Bengkulu, PLTP Sungai Penuh Unit 1 (1×55 MW) in Jambi.

The above new geothermal projects have a combined capacity of 505 MW.

President Joko Widodo on Sunday officiated geothermal power plant PLTP Kamojang Unit 5, owned by Pertamina’s subsidiary PT Pertamina Geothermal Energy. The power plant with capacity of 35 MW is located in Kamojang, Garut in West Java.

PLTP Kamojang Unit 5 has started commercial operation since June 29, 2015 at 00.000.

Currently, Indonesia only utilizes 1,226 megawatts (MW), or 5 percent of its total geothermal reserves, despite being surrounded by a number of tectonic plates.

With that geographical position, Indonesia holds 40 percent of the world’s geothermal reserves with a total potential of 29,000 MW scattered across 276 locations. But land acquisition and permit issues have often hampered the development of geothermal projects.

Following is the list of existing geothermal power plants:

Geothermal power plants Capacity Operator
Darajat Power Station I 55 MW Chevron
Darajat Power Station II,III 200 MW Chevron
Kamojang Geothermal Power Plant I, II, III, IV, V 235 MW Pertamina Geothermal Energy
Wayang Windu Geothermal Power Station 227 MW Star Energy Geothermal

 

There are currently a number of major geothermal power plant projects being developed, including the Sarulla project with estimated investment of US$1.6 billion. The Sarulla geothermal power plant in North Sumatra is designed to become the world’s largest geothermal plant with a total net guaranteed delivery capacity of around 330 MW for a period of 30 years. The groundbreaking for this project was finally conducted in June 2014. The plant is expected to start operations in 2016 and will be fully completed by 2018.

The Sarulla project is led by a consortium consisting of Medco Power Indonesia (37.5 percent), Itochu Corporation (25 percent), Kyushu Electric Power Company (25 percent) and Ormat International (12.5 percent).

A total of USD $1.17 billion for the funding of the project was collected through loans from six commercial lenders (Bank of Tokyo-Mitsubishi UFJ Ltd, ING Bank NV, Societe Generale, Sumitomo Mitsui Banking Corportation, Mizuho Bank Ltd and National Australia Bank) as well as the Asian Development Bank (ADB) and the Japan Bank for International Cooperation (JBIC). (*)

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