Chevron And PGE Agree On JSA To Develop Geothermal Sources In South Sumatra
JAKARTA - PT Pertamina Geothermal Energy Tbk (PGE) and Chevron New Energies International (Chevron) signed a Joint Study Agreement (JSA) to investigate the potential for additional geothermal resources in several areas in South Sumatra.
President Director of PT Pertamina Geothermal Energy Tbk. Julfi Hadi explained that this JSA aims to take advantage of the complementary strength of PGE, as the largest geothermal company in Indonesia and Chevron.
Meanwhile Chevron believes that his expertise and technology in geothermal exploration, subsurface studies, project development, and operational excellence combined with PGE's extensive expertise in managing geothermal can create value and provide benefits for the wider community in providing reliable and affordable renewable energy.
"With abundant renewable resources and profitable geographic locations, Indonesia has all the elements needed to be the main source of green hydrogen and green ammonia. Realizing this potential, PGE synergizes with Chevron which is expected to have a broad positive impact on the community, especially in the South Sumatra region," explained Julfi in a statement to the media, Thursday, July 13.
Indonesia Country Manager Chevron Wahyu Budiarto said Indonesia had been an important part of Chevron's portfolio for years.
"We hope to take advantage of Chevron's new expertise and technology in the geothermal field to explore Indonesia's renewable energy resources with PGE," Wahyu continued.
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This JSA is the fourth agreement produced from the initial collaboration between Chevron and Pertamina announced in Washington, DC, in May 2022 to explore potential low-carbon business opportunities in Indonesia.
The first has been announced at the B20 event in Bali in November 2022 between Chevron New Energies, Pertamina Power Indonesia and Kepel Infrastructure, with the aim of exploring the development of certain green hydrogen and green ammonia projects using renewable energy in South Sumatra, Indonesia.
The second JSA was signed in Houston, Texas on March 6, 2023, to review the feasibility of carbon capture storage and carbon capture utility and storage (CCS/CCUS) in East Kalimantan, Indonesia. Third, PGE and one of Chevron's affiliates in Indonesia, formed a consortium to participate and then won a tender for Way Ratai's geothermal working area in Lampung, Indonesia.