EDC seals geothermal venture in Indonesia

Energy Development Corp. (EDC), a unit of Lopez-led First Gen Corp., has formalized its expansion into Indonesia through a joint venture that seeks to tap and uncover the country’s vast geothermal potential.

Through its subsidiary PT FirstGen Geothermal Indonesia, EDC has entered into a strategic partnership with PT DSSR Daya Mas Sakti, a subsidiary of PT Dian Swastatika Sentosa Tbk (DSSA) under the Sinar Mas Group, to develop a geothermal energy portfolio in the region.

“Our joint venture with Sinar Mas will allow us to jointly explore and develop geothermal projects in Indonesia. We believe our target sites have the potential to generate 440MW of clean baseload power, with exploration drilling in some of the sites planned to start by next year,” EDC President and COO Jerome H. Cainglet said over the weekend.

The partnership follows an agreement signed in August to transfer expertise, enhance domestic capacity, and accelerate the development of Indonesia’s geothermal resources, which account for about 40 percent of the world’s reserves but are only around 10 percent developed.

The joint venture will focus on six strategic fields located in West Java, Flores, Jambi, West Sumatra, and Central Sulawesi, with a combined potential of about 440 megawatts (MW).

“The Philippines and Indonesia are the key markets that we are focused on at the moment. We are bringing close to 50 years of geothermal experience and expertise to Indonesia,” Cainglet said.

“At the same time, we know that there is also a lot that we can learn there, which we may use in the Philippines as we continue to expand our geothermal base in the country in full support of the DOE’s call for more geothermal development here,” he added.

Indonesia holds about 40 percent of the world’s geothermal resources, equivalent to 24 gigawatts, though only 10 percent has been developed.

Locally, EDC operates nearly 1,400 MW of renewable energy, making up 17 percent of the country’s total. Its geothermal capacity of over 1,000 MW accounts for 56 percent of the national total, placing the country as the world’s third-largest geothermal producer.