The Lumut Balai geothermal power plant of Pertamina Geothermal Energy.
Pertamina Geothermal Energy (PGE) is a big and very active geothermal energy player in Indonesia. It is the operator of the first geothermal power plant in Indonesia – The Kamojang plant.
Engaging in thirteen geothermal work areas in Indonesia, PGE involves in the production of 1877 MW of geothermal power, 672 MW of which is under its operation and 1205 MW under the joint operation contracts.
PGE operates six of its solely owned geothermal plants and has interests in four other geothermal plants that are under a joint-operating contract scheme.
Pertamina Geothermal Energy has targets to increase its own power generation capacity from 672 MW to 1540 MW by 2030 contributing to reducing 9 million tons of CO2 emission annually.
As PGE aims to be a world-class green energy producer and to accelerate its ambitious geothermal expansion, it officially became a public company on 24 February 2023 following the completion of its initial public offering (IPO).
PGE booked a net profit of USD 127.3 million in 2022. This is an increase of almost 50% from its profit in 2021.
Part of the profit came from selling US$ 747,000 worth of carbon credits.
Currently, PGE is constructing its 55 MW Lumut Balai Unit 2 power plant which will come online by the end of 2024.
To further increase the installed capacity of its geothermal power, PGE plans to construct two 55 MW power stations in the Hulu Lais geothermal work area.
Current Projects of Pertamina Geothermal Energy
Here are its current projects:
• Constructing the Lumut Balai 55 MW Unit 2 power station. Pertamina Geothermal Energy has commissioned the Mitsubishi Power consortium to construct its second 55-MW power station in the Lumut Balai work area in South Sumatra. When completed, the Lumut Balai geothermal plant will have an installed capacity of 110 MW.
• Completing a small-scale 500 KW geothermal power plant in Lahendong. This will serve as a model for small geothermal power plants to be built in other parts of the country.
• Recently PGE signed an MOU with Ormat Technologies to conduct a joint study on developing power plants using binary technology. CEO of PGE, Ahmad Yuniarto said that the application of binary technology has the potential to increase its current already installed generation capacity by up to 210 MW.
• PGE is exploring a partnership with Chevron targeting the utilization of geothermal energy for other purposes including such as green hydrogen production, CO2 processing, and extraction of rare metals.
• Pertamina Geothermal Energy sets out to expand its Ulubelu geothermal power plant located in Lampung, Indonesia. It plans to drill six wells in 2023. Currently, the Ulubelu power plant consisting of four power stations have a combined installed capacity of 220 MW. Pertamina is the operator of two of the power units while PLN is the operator of the other two power units.
The six geothermal plants that PGE operates are:
Kamojang in West Java – 235 MW
Ulubelu in Lampung, South Sumatera – 220 MW
Lahendong in North Sulawesi – 120 MW
Lumut Balai Unit 1 in South Sumatera – 55 MW
Karaha in West Java – 30 MW
Sibayak in North Sumatera– 12 MW
The IPO of Pertamina Geothermal Energy
PGE officially became a public company on 24 February 2023 following the completion of its initial public offering (IPO).
The IPO of Pertamina Geothermal Energy is highly successful. It is oversubscribed 3.81 times. And this is significant!
Through the IPO, PGE offered to sell 25% of its shares, equivalent to 10.35 billion shares, at IDR 875 per share to the public.
Since the IPO is oversubscribed, PGE is successful in selling all the shares that it offered to sell.
This means PGE has successfully raised fresh funds worth IDR 9.056 trillion or 596 million USD.
The oversubscription shows there is huge interest from institutional investors in the business of clean energy and PGE.
One such company is MASDAR from UAE. Masdar is the biggest subscriber of PGE shares. Through the IPO it now owns 15% of the total PGE shares.
Masdar is one of the world’s largest clean energy producers with projects located in 40 countries. By investing in PGE, Masdar plans to further expand its interest in clean energy development in the Asia Pacific.
With its successful IPO and its new partner Masdar, PGE is set to expand its business in developing geothermal resources in Indonesia and beyond.
Jamin Djuang – Chief Learning officer of LDI Training
Indonesia is the second-largest geothermal energy producer in the world after the USA. The total installed power generating capacity from the active 19 geothermal power plants in Indonesia is 2356 MW as of December 2022.
Indonesia is the biggest contributor to the increase of installed geothermal power in the world in 2021.
Indonesia added a total of 133 MW of capacity in 2021: 45 MW from Unit II Sorik Marapi Geothermal Power Plant on 28 July 2021 and 98.4 MW from the Rantau Dedap Power plant on 26 December 2021.
The country added a total of 80 MW of geothermal power in in 2022.
Located right on the long stretch of the ring of fire, Indonesian islands are endowed with rich geothermal resources. The total potential geothermal resources of Indonesia are estimated at 28,000 MW.
Although the geothermal potential is huge, its utilization rate is under 8%.
Here are the top ten largest geothermal plants in Indonesia in 2022.
The Kamojang Geothermal Plant
Operating since 1982, the 235 MW Kamojang plant is the first geothermal power plant in Indonesia. Located in the Garut area in West Java, it has been operating for 38 years.
The Dutch spotted the Kamojang geothermal potential more than one hundred years ago and drilled several wells in the area. In 1926 it successfully drilled the first steam-producing well in Kamojang, also the first in Indonesia.
Later in I971, Pertamina Geothermal Energy (PGE) with cooperation from New Zealand began to develop the field followed by the construction of the Kamojang power plant, the first geothermal power plant in Indonesia.
The plant is operated by Pertamina Geothermal Energi.
The Salak Geothermal Power Plant
Producing 377 MW of power, the Salak plant is the largest geothermal power plant in Indonesia and is also one of the largest in the world.
Located at Gunung Salak in West Java, the Salak plant has been operating since 1994.
The Salak geothermal resources were initially explored and developed by Unocal. In 2005, the Salak geothermal assets were taken over by Chevron who eventually sold it to Star Energy in 2017.
The Darajat Geothermal Plant
The 270 MW Darajat geothermal plant, located at Garut in West Java, started its commercial operation in 1994 and is one of the oldest geothermal power plants in Indonesia.
The Darajat geothermal assets were initially explored and developed by Amoseas. The assets were later taken over by Chevron who eventually sold it to a consortium led by Star Energy in 2017.
The Darajat resource has two special characteristics. First, it is one of only a few dry steam fields in the world.
Secondly, the Darajat wells are highly productive. While the worldwide average capacity of a geothermal well is 5 to 10 MW, a Darajat well can produce 40 MW of power.
The Sarulla Geothermal Plant
The Sarulla geothermal plant, consisting of three power stations with a total of 330 MW capacity, is the second-largest geothermal plant in Indonesia and is also one of the largest geothermal plants in the world.
The Sarulla geothermal resources, located in North Sumatra, were initially discovered by Unocal. Unocal conducted extensive exploration in the Sarulla geothermal working area from 1993 to 1998. It drilled a total of 13 deep wells and proved the existence of 330 MW of commercial geothermal reserves for 30 years.
However, due to the Asian financial crisis in 1997, the Unocal proposed power plant was not constructed until after the project was taken over by Sarulla Operation Limited (SOL).
Sarulla Operation Limited started to operate the first power station in March 2017, the second station in October 2017 and the third station in March 2018.
The company is a consortium consisting of Medco Power Indonesia, Pertamina Geothermal Energy, INPEX, Ormat International, Itochu Corporation, and Kyushu Electric Power.
The Sorik Marapi Geothermal Plant
The Sorik Marapi geothermal power plant located in Mandailing Natal in North Sumatra has a total installed capacity of 140 MW. as of October 6, 2022.
The Sorik Marapi geothermal plant was developed by ORKA Energy and operated by PT Sorik Marapi Geothermal Power.
The Sorik Marapi 45 MW Unit 1 power station came online in 2019. It was completed in a record time of three years, with the first drilling starting in October 2016 and the completion of the power station in October 2019.
The second 45 MW unit was inaugurated on 28 July 2021.
Its newest power station, the 50 MW Sorik Marapi Unit 3 station came online on October 6, 2022.
The company has a target to complete 50 MW Unit 4 and 50 MW Unit 5 power stations in 2023 and 2024 respectively to bring up its total eventual power generation capacity to 240 MW.
The Muara Laboh Geothermal Plant
Completed in 2019, the 85 MW Muara Laboh geothermal plant is the newest plant among the ten largest geothermal power plants in Indonesia.
The Muara Laboh geothermal plant is located in West Sumatra and is operated by Supreme Energy Muara Laboh (SEML).
It took the company 12 years to complete the geothermal project at 587 million US dollars.
The operator of the project, PT Supreme Energy Muara Laboh (SEML), is a consortium consisting of PT Supreme Energy, ENGIE, and Sumitomo Corporation.
Having proven reserves of 200MW, the company is in negotiation with PLN, the national power company, to build a second power generation unit.
The Ulubelu Geothermal Plant
Operating since 2012 and located at Lampung in Sumatera, the 220 MW Ulubelu geothermal power plant is operated by Pertamina Geothermal Energy.
The combined 220 MW power comes from the four 55 MW power generation units.
The Lahendong Geothermal Plant
The 120 MW Lahendong geothermal plant is located in Tomohon in North Sulawesi. The Lahendong plant started to operate commercially in 2001 and Pertamina Geothermal Energy (PGE) is the operator.
Its combined 120 MW power is generated from its six 20 MW power generation units.
The Wayang Windu Geothermal Plant
Located in the Bandung area in West Java, the 227 MW Wayang Windu geothermal project plant was initially started by Magma Nusantara Limited.
The power plant began its commercial operation in 1999. The power plant consists of two power stations – the 110 MW Unit 1 and the 117 MW Unit 2 stations.
Star Energy, the current operator of the Wayang Windu power plant, acquired the project in November 2004.
The Dieng Geothermal Plant
The 60 MW Dieng geothermal power plant started to operate in 1998. The Dieng plant is located in the Dieng area in Central Java and is operated by Geo Dipa Energi.
Geo Dipa Energi is currently working on the following projects in the Dieng work area:
Adding a small 10 MW power plant.
Developing a 55 MW Dieng-2 power plant (PLTP Dieng Unit 2)
Developing a 55 MW Dieng-3 power plant (PLTP Dieng Unit 3)
The Patuha Geothermal Plant
The 55 MW Patuha geothermal plant located at the Ciwidey area in West Java has been in operation since 2014.
Geo Dipa Energi as the operator is committed to drilling 12 new wells beginning in 2021 and constructing a second 55 MW power plant. Its long-term plan is to increase the Patuha power generation capacity to 400 MW.
The Lumut Balai Geothermal Plant
The 55 MW Unit 1 station of the Lumut Balai geothermal plant, located at Muara Enim in South Sumatra, started to operate commercially in 2019.
Pertamina Geothermal Energy as the operator of the Lumut Balai geothermal work area aiming to bring the total capacity of the power plant to 220 MW has started the project to build a second 55 MW power station.
Pertamina Geothermal Energy has awarded the Engineering, Procurement, Construction, and Commissioning (EPCC) contract to the Mitsubishi Corporation Consortium to construct the 55-MW Lumut Balai Unit 2 Geothermal Power Plant and the corresponding Fluid Collection and Reinjection System.
The Rantau Dedap Geothermal Plant
The Rantau Dedap geothermal power plant, located in South Sumatra, is the latest geothermal power plant that came online in Indonesia in 2021. Currently, it consists of two power stations, Unit 1 and Unit 2 having a total installed capacity of 98.5 MW.
The power plant is operated by PT Supreme Energy Rantau Dedap (SERD), a consortium consisting of Supreme Energy, Marubeni, ENGIE, and Tohoku Electric Company.
Here are the timelines for the Rantau Dedap geothermal project:
2010 – The concession for the Rantau Dedap was awarded to Supreme Energy.
2011 – Geoscientific exploration began.
2014 – Exploration drilling began.
2015 – A total of 6 exploration wells were completed by 2015.
2016 – The company confirmed the 92 MW of proven reserve capacity.
2018 – Power plant construction began.
2021 – Completed the Unit 1 and Unit 2 power stations.
The 49.25 MW Unit 1 station was successfully synchronized to PLN’s power grid on 5 October 2021. PLN – Perusahaan Listrik Negara – is the national electricity company of Indonesia.
The Rantau Dedap Unit 2 station began its commercial operation on 26 December 2021.
PT Supreme Energy Rantau Dedap plans to further develop the geothermal potential in the Rantau Dedap geothermal work area with a total development target of 240 MW.
Geothermal is Rising in Indonesia
Sixteen geothermal power plants are operating in Indonesia currently. The list of the top largest power plants in Indonesia will likely change in 2023 as several new power plants will be completed in near future.
The Indonesian government is very keen to develop its vast geothermal resources to increase the contribution of renewable energy in its energy mix. Its targets are to increase the geothermal power generation capacity to 7500 MW by 2025 and 9300 MW by 2035.
To meet these targets, the government will provide funds to help companies in their exploration drillings, provide tax holidays, and remove certain taxes.
With a total of 265 potential sites for geothermal plants located across the country, the utilization of geothermal resources should continue to increase long into the future in Indonesia.
Written by Jamin Djuang – Chief Learning Officer of LDI Training and author of The Story of Oil and Gas: How Oil and Gas Are Explored, Drilled, and Produced
Medco Energy International is the first publicly owned oil company in Indonesia.
Medco is celebrating more than forty years of presence and continuing successes as one of the leading energy companies in Indonesia and Southeast Asia.
Medco Energi International became a public company in 1994, and today it operates in eight countries.
It has interests in oil and gas exploration and production, geothermal power generation, gas distribution and trading, and mining.
The year 2022 is a wonderful year for Medco Energy. It booked net profits of 531 million USD in 2022 which is more than 10 times higher than the US$ 47 million it made in 2021. The company produced 163 million barrels of oil equivalent (BOE) in 2022, a 73% increase over the previous year.
The Beginning of Medco
Medco Energi has come a long way in a short time since it started as an oil drilling service company in 1980, Meta Epsi Pribumi Drilling Company (MEDCO).
Founded by Mr. Arifin Panigoro, Medco Energi was a visionary and a trailblazer ever since its beginning.
The Acquisition of Stanvac Indonesia
The first breaks that made Medco became big and successful were the acquisition of Stanvac’s oil and gas assets in South Sumatera in 1995, and the following discovery of the big oil fields in Kaji and Semoga in the Rimau Block, in South Sumatera.
Stanvac Indonesia, set up by Standard Oil of New Jersey in 1912, was one of the oldest and biggest oil companies in Indonesia during the Dutch colonial era.
The Acquisition of ConocoPhillip’s Interest in West Natuna Sea Block B PSC
Medco Energi further expanded in 2016 when it purchased ConocoPhillips’s 40% interest in the West Natuna Sea Block B and took over the operatorship of the block.
This acquisition added substantial gas and liquids reserves and increased Medco Energi’s daily production by over 35%.
The block is in approximately 300 feet of water and had 11 offshore platforms, four producing subsea fields, and one FPSO – the Belanak FPSO – in addition to two dedicated floating storage and offloading vessels.
The Belanak FPSO was described as one of the most complex FPSO in the world. It was the first offshore liquefied petroleum gas (LPG) facility on a floating vessel in the Asia Pacific region when it was commissioned in 2004.
The fields include the Belanak field, South Belut field, Hiu field, Kerisi field, North Belut field and Bawal field.
The produced natural gas is sold to Singapore and Malaysia through a 654 KM long 28 inch gas pipeline.
Medco Energi also assumed the operatorship of the Onshore Receiving Facility in Singapore following the acquisition.
Acquisition of Ophir Energy
Medco Energi Internasional continued to expand by acquiring Ophir Energy, a London-based independent in 2019.
The acquisition of Ophir Energy increased Medco Energi’s daily oil and gas production by 29% to 110,000 BOE per day.
By taking over the operatorship of Ophir Energy’s offshore Bualuang field in Thailand, Medco Energi became a leading regional oil and gas player in South East Asia.
Acquisition of Corridor PSC and Transasia Pipeline
On March 3, 2022, Medco Energi acquired the entire remaining assets of ConocoPhillips in Indonesia..
Through this acquisition, Medco Energi is now the operator of the Corridor block with 54% interest and has 35% ownership of Transasia Pipeline Company.
The Corridor PSC has two producing oil fields and seven producing gas fields located onshore South Sumatra, Indonesia, adjacent to MedcoEnergi’s existing operations in South Sumatra. The Corridor is the second-largest gas-producing block in Indonesia.
Through Transasia, MedcoEnergi now owns a minority interest in the gas pipeline network supplying Central Sumatera, Batam, and Singapore customers.
Epilogue
With this latest acquisition, Medco Energi is now one of the largest oil and gas operators in Indonesia.
Besides acquiring producing assets, Medco Energi is also active in exploring new oil and gas reserves.
Its 2020 exploration drilling campaign in the South Natuna Sea Block B was 100% successful. It tested hydrocarbon in all the four exploration wells it drilled. The wells are Bronang-2, Kaci-2, Terubuk-5, and West Belut-1.
Medco Energi is planning to develop these fields.
As Medco Energi celebrates its more than 40 years of progress, with its solid management team, it certainly will continue to march toward an even brighter future.
Top Management Team of Medco Energi
Here is the top management team of Medco Energi.
Muhammad Lutfi – President Commissioner
Hilmi Panigoro – President Director
Roberto Lorato – Chief Executive Officer
Anthony R Mathias – Chief Financial Officer
Ronald Gunawan – Chief Operating Officer
Amri Siahaan – Chief Human Capital and Business Support Officer
Myrta Sri Utami – VP Corporate Planning & IR
Siendy K Wisandana – Head of Legal Counsel and Secretary
As a final note, Dr. Arifin Panigoro, the man who started it all and the founder of Medco group of companies died on 27 February 2022 at age of 76.
The Indonesia government will drill geothermal exploration wells in 20 geothermal work areas in Indonesia beginning in 2020 until 2024, according to Ida Nuryatin Finahari, Director of Geothermal in the Ministry of Energy and Mineral Resources.
The purpose of this initiative is to gather information on the geothermal potentials in each work area and to pass this information to potential investors.
The Indonesia government hopes this four year project will stimulate the interests of investors and accelerate the development of geothermal energy in Indonesia.
Here are the twenty geothermal work area where the government of Indonesia will drill exploration wells.
Dr. Roland N. Horne is the Thomas Davies Barrow Professor of Earth Sciences at Stanford University, and Senior Fellow in the Precourt Institute for Energy. He was also formerly Chairman of the Petroleum Engineering Department from 1995 to 2006.
He holds BE, Ph.D. and DSc degrees from the University of Auckland, New Zealand, all in Engineering Science.
Roland Horne is well recognized as an expert in geothermal resources. He received Geothermal Special Achievement Award from Geothermal Resources Council in 2015. He is the Technical Programme Chair of World Geothermal Congress 2020 in Reykjavik and a member of the Geothermal Resources Council (GRC) Board of Directors.
Dr. Horne is also well known for his work in well test interpretation, production optimization, and analysis of fractured reservoirs.
He is an internationally-recognized expert in the area of well test analysis and has twice been an SPE Distinguished Lecturer on well-testing subjects.
Under him, more than 50 people have obtained Ph.D. degrees at Stanford University. Currently, Stanford University is recognized as one of the top schools in the world for the study of well test interpretation.
Prof. Roland Horne has written more than 90 technical papers, is the author of the book Modern Well Test Analysis and co-author of the book Discrete Fracture Network Modeling of Hydraulic Stimulation. He is an SPE Honorary Member, and a member of the National Academy of Engineering in the USA.
Prof. Horne will conduct a 4-day webinar – Geothermal Reservoir Engineering– in October 6-9, 2020. If you want more information about this course, please contact LDI Training at lditrain@singnet.com.sg.
He also conducts a 5-day Modern Well Test Analysis course. This highly regarded course has been attended by thousands of oil and gas, as well as geothermal professionals in many countries for more than 20 years. If you want more information about the course, please contact LDI Training at lditrain@singnet.com.sg.
Watch this spectacular USGS video showing lava laze formed by the lava of Kilauea volcano flowing into ocean at Kapoho bay on June 4, 2018.
The lava is from Kilauea Volcano’s lower east Rift Zone entering the ocean. The ocean entry is about a half-mile wide. The flow sends a large laze plume into the air along the coast.
What is lava laze?
When the lava flow goes into the ocean water, it boils the water and creates a white acidic plume. That’s laze.
“It’s a complex chemical reaction that occurs between the lava flow and seawater,” said Wendy Stovall, a volcanologist with the U.S. Geological Survey. “It creates a mixture of condensed acidic steam, hydrochloric acid gas and tiny shards of volcanic glass.”
From the air, the plume looks like exhaust from a factory or the white smoke released during a forest fire.
If you’re underneath the plume, a light sprinkle of rain as corrosive as battery acid can fall on you. The acid can burn your skin, irritate your eyes and make it difficult to breathe. In rare cases, the damage can be permanent.
Geothermal plants can be safely situated near a volcano, says Dr. Roland Horne, Thomas Davies Barrow Professor in the School of Earth Sciences and Senior Fellow at the Precourt Institute for Energy at Standord University.
In this article, Dr. Roland Horne discusses geothermal energy in the face of natural hazards and a way to tap the earth’s heat far from volcanoes in the future.
I highly recommend you read the article that I mention above. In this article you can also watch the awesome lava flow from a fissure of Mt. Kilauea on May 19, 2018 and learn about Stanford University’s School of Earth, Energy & Environmental Sciences.
