Pertamina seeking $3B to increase geothermal by 1 GW

PT Pertamina Geothermal Energy plans to raise up to $3 billion to finance 1,068 megawatts of geothermal energy projects within the next five years.

The subsidiary of Indonesia's state-owned oil and gas company Pertamina currently operates two geothermal projects that total 272 MW of capacity in West Java and North Sulawesi.

San Ramon, Calif.-based Chevron (NYSE: CVX) developed the 259 MW Darajat project in West Java with local partner PT Darajat Geothermal Indonesia under a joint operating deal with Pertamina (see Chevron expands geothermal operations in Indonesia).

Pertamina also signed a deal in 2007 to jointly operate a 340 MW geothermal facility in North Sumatra being built by a three-company consortium: Jakarta's Medco Energi Internasional, Nevada's Ormat Technologies (NYSE:ORA) and Tokyo's Itochu. The $800 million Sarulla project is expected to be completed by 2012.

According to the U.S. Energy Information Administration, Indonesia is facing electricity shortages because its power sector has underinvested in new generating capacity. The country has about 25 GW of energy generation capacity, with about 5 percent coming from renewable energy, including geothermal.

The EIA says some estimates put current geothermal capacity at about 800 MW, making it the fourth-largest geothermal producer in the world behind the U.S., Philippines, and Mexico.

Indonesia's government has estimated untapped geothermal resources at 21 GW. PT Pertamine plans to drill 35 geothermal wells in 2009 and 2010 alone, and the company is seeking money from the World Bank and other lenders to complete its planned geothermal projects.

Cleantech developments making news in the past 24 hours

• Metabolix, ADM to open new bioplastics factory
• Rockwool nears construction on Indian insulation factory

View the last week of cleantech developments here | Subscribe to full feed