Developing Geothermal Potential, Pertamina Geothermal Energy Constructs Lumut Balai Unit 2 Geothermal Power Plant

Muara Enim, December 19, 2023 - PT Pertamina Geothermal Energy Tbk. (IDX: PGEO) continues to demonstrate its commitment to developing geothermal potential in Indonesia. This time, the commitment is realized through the Lumut Balai Unit 2 Geothermal Power Plant (PLTP) project groundbreaking on Tuesday (19/12) in Muara Enim Regency, South Sumatera.

The PLTP Lumut Balai Unit 2 construction will add a geothermal capacity of 55 MW to the Lumut Balai Area, totaling the geothermal capacity in the region to 110 MW.

Nicke Widyawati, President Director of PT Pertamina (Persero), commended this significant milestone achieved by Pertamina Geothermal Energy, emphasizing its ongoing efforts to promote renewable energy use in Indonesia.

"Through the Lumut Balai Unit 2 groundbreaking, Pertamina Geothermal Energy has proven its dedication to developing geothermal potential in Indonesia. We are optimistic that in the future, Pertamina Geothermal Energy would drive the green ecosystem growth globally and in Indonesia," Nicke stated.

Simultaneously, Julfi Hadi, President Director of Pertamina Geothermal Energy Tbk, stated that the Lumut Balai Unit 2 project is a concrete step towards becoming a 1 GW company. This project is part of the National Strategic Project based on Presidential Regulation No. 3 of 2016 and Ministry of Energy and Mineral Resources Regulation No. 40 of 2014.

Julfi explained that with the groundbreaking, Pertamina Geothermal Energy will accelerate the PLTP Lumut Balai Unit 2 development to the next stage. "After the groundbreaking, we will accelerate to the engineering design stage, foundation drilling for the Fluid Collection and Reinjection System (FCRS), and transmission line preparation," Julfi said.

Furthermore, Julfi conveyed that the project is targeted to be operational by the end of 2024. PLTP Lumut Balai Unit 2 has the potential to reduce emissions by up to 581,784 tCO2eq/year.

"This is a step for the company to support the government in achieving the national energy mix target of 23 percent by 2025 and net zero emissions by 2060," Julfi explained.

During this occasion, Julfi explained that the Lumut Balai Unit 2 project is managed through collaboration between Indonesia and Indo-Pacific countries, namely Japan and China.

"Pertamina Geothermal Energy collaborates with three companies from Japan, China, and Indonesia, namely Mitsubishi Corporation, SEPCO III Electric Power Construction Co., Ltd. (SEPCO III), and PT Wijaya Karya (Persero) Tbk. to develop the Lumut Balai Unit 2 project," Julfi said.

Regarding funding, the project has received a stimulus of US$155 million from the Japan International Cooperation Agency (JICA).

In addition to Lumut Balai Unit 2, Pertamina Geothermal Energy is also developing other geothermal projects to achieve its vision to be a 1 GW company in the next two years. These projects include Hululais (Units 1 and 2) with a capacity of 110 MW and the optimization of binary technology in existing areas.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**