Masdar invests in clean geothermal energy

ALBAWABA - Global clean energy powerhouse Masdar is entering the geothermal energy sector through a strategic investment in Pertamina Geothermal Energy (PGE), one of the world's largest geothermal players, the firm said in a statement.

"The investment marks Masdar's entry into geothermal energy, in the second-largest geothermal market in the world," the statement said.

UAE Minister of Industry and Advanced Technology Sultan Al Jaber, who is also Masdar's chairman, said: "Achieving the 1.5C 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," he explained.

PGE CEO Ahmad Yuniarto said: "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."

"We endeavor to develop 600 megawatts (MW) in additional installed capacity over the next five years to support Indonesia's renewable energy mix," he added.

According to the statement, Indonesia has a goal of increasing its installed geothermal capacity from 2.8 gigawatts (GW) in 2022 to 6.2 GW by 2030.

The Government is targeting net-zero emissions by 2060 and having renewables provide 23 percent of the energy mix by 2023.

PGE has been operating geothermal facilities in Indonesia for the last 40 years, with a portfolio capacity exceeding 1.87 GW.

Geothermal energy harnesses the heat generated within the Earth's core to provide a constant energy source, unlike solar or wind, which are intermittent in nature.