Masdar, a global clean energy company, is expanding into the geothermal energy sector through a strategic investment in Pertamina Geothermal Energy (PGE), one of the world’s largest geothermal players. This investment marks Masdar’s entry into geothermal energy in the second-largest geothermal market in the world, Indonesia. Masdar’s investment in PGE aligns with Indonesia’s goal of increasing its installed geothermal capacity from 2.8 GW in 2022 to 6.2 GW by 2030 and transitioning to net-zero emissions by 2060.
Geothermal energy harnesses the heat generated within the Earth’s core to provide a constant energy source, unlike solar or wind, which are intermittent. Geothermal energy plants also have high-capacity factors, meaning they can run at maximum power for longer periods. These attributes make geothermal energy a valuable source of clean energy in the transition to a low-carbon future.
PGE has been operating geothermal facilities in Indonesia for the past 40 years, with a portfolio capacity exceeding 1.87 GW. PGE aims to develop an additional 600 MW in installed capacity over the next five years to support Indonesia’s renewable energy mix.
Masdar’s strategic investment in PGE complements its strong footprint in Indonesia, where it is already developing the region’s largest floating solar facility and exploring the development of up to 1.2 GW solar capacity for export to Singapore. Masdar recently announced a new shareholding structure and additional focus on green hydrogen, making it one of the largest clean energy companies in the world, with a goal of achieving 100 GW renewable energy capacity and green hydrogen production of 1 million tonnes per annum annually by 2030.