We have committed ourselves to setting aside US$2 billion to develop geothermal energy in six to seven years' time.Jakarta (ANTARA) - State oil and gas company PT Pertamina will allot US$2 billion (Rp27 trillion) for the development of geothermal facilities in the coming six to seven years.
The amount mirrored the company's commitment to supporting the development of new and renewable energy and achieving the 23 percent renewable energy mix target by 2025, Pertamina Finance Director Pahala Mansury remarked during the EBTKE ConEx 2019 in Jakarta on Thursday.
"We have committed ourselves to setting aside US$2 billion to develop geothermal energy in six to seven years' time," he emphasized.
Related news: World Bank approves $150 million geothermal energy loan
The figure is comparatively small in comparison with the total investment of US$80 billion required to develop the company's business, he noted.
"Given the existing condition, the prevailing regulation, and the existing offtake contract, we are yet unable to develop it on a larger scale," he stated.
Moreover, the mandate given to Pertamina concerning national energy management in accordance with Energy Law No. 30 of 2007 is only limited to availability, accessibility, affordability, acceptability, and sustainability of fuels.
Related news: Ministry of Finance encourages geothermal energy exploration
However, he noted that Pertamina has opened up opportunities to increase the development of new and renewable energy in collaboration with strategic partners under a partnership scheme, including with state electricity company PT Perusahaan Listrik Negara (PLN) to produce electrical power and steam through Pertamina's geothermal facilities.
By 2020, Pertamina will have an installed capacity of 670 gigawatts of electrical power from geothermal energy. The company has targeted to raise the capacity to up to 100 gigawatts in 2025.
Related news: Pertamina set to boost production of green fuel
Related news: Thohir to oversee refinery talks between Pertamina, Aramco
EDITED BY INE
Translator: Ade irma Junida/Suharto
Editor: Fardah Assegaf
Copyright © ANTARA 2019
