PGE geared to add 55 MW geothermal capacity in South Sumatra

Nusa Dua, Bali – PT Pertamina Geothermal Energy (PGE) at the B20 Indonesia Net Zero Summit 2022 event at the Bali Nusa Dua Convention Center (BNDCC), Friday, November 11 2022, signed a Government to Government Loan (G to G loan) agreement with the Japanese government for the development of geothermal projects in South Sumatra.

In the event, PGE as part of the Subholding Pertamina Power & New Renewable Energy (PNRE) signed an Engineering, Procurement, Construction, and Commissioning (EPCC) agreement for the construction of the Fluid Collection and Reinjection System (FCRS) and the Lumut Balai Unit Geothermal Power Plant. 2 in South Sumatra with the Mitsubishi Corporation Consortium, PT Wijaya Karya (Persero) Tbk., and SEPCO III Electric Power Construction Co. Ltd.

PGE President Director Ahmad Yuniarto explained, in running its business PGE continues to be committed to geothermal development and ensures the implementation of Environment, Social, and Governance (ESG) to become an integrated part of PGE’s geothermal business. The implementation of these ESG aspects is an effort to provide added value and support PGE to government programs related to the use of new, renewable energy that is environmentally friendly, especially geothermal.

The project that is located in Muara Enim and Ogan Komering Ulu Regencies in South Sumatra Province, will be funded by Japan’s Official development assistance (ODA) loan, under the Government to Government Loan (G to G Loan) scheme between the Japan International Cooperation Agency (JICA) and the Government of Indonesia.

The 55 MW capacity generated from Unit 2 will increase PGE’s total installed capacity, after previously 55 MW generated from the Lumut Balai Unit 1 Project which began operating in 2019. With this additional capacity, PGE is one of the largest players in Indonesia’s geothermal development. with an installed capacity of 727 MW.

The turnkey basis contract, or a project that will be handed over as it is ready to operate. Before handing it over to PGE, the Mitsubishi Corporation Consortium, PT Wijaya Karya (Persero) Tbk., and SEPCO III Electric Power Construction Co. Ltd. will carry out the design, manufacturing, civil works construction, commissioning, performance testing and warranty for the facility, consisting of a Geothermal Power Plant unit and Fluid Collection and Reinjection System with a net capacity of 55 MW high voltage terminal.

PGE contributes 82% of the total installed geothermal capacity in Indonesia, with the potential to reduce CO2 emissions of around 9.7 million tons of CO2 per year. (Hartatik)

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