PGEO Groundbreaking PLTP Lumut Project Balai Unit 2

PLTP Ulumbu with a capacity of 4x2.5 MW or a total of 10 MW in Manggarai Regency, East Nusa Tenggara. (Photo: Doc. ANTARA)

JAKARTA - PT Pertamina Geothermal Energy Tbk. (PGEO) conducted a groundbreaking for the Lumut Balai Unit 2 Geothermal Power Plant (PLTP) project which was held on Tuesday 19 December in Muara Enim Regency, South Sumatra.

Pembangunan PLTP Lumut Balai Unit 2 akan menambah kapasitas panas bumi di Area Lumut Balai sebesar 55 MW, sehingga total panas bumi di wilayah tersebut menjadi 110 MW.

President Director of PT Pertamina (Persero) Nicke Widyawati appreciates this important milestone of Pertamina Geothermal Energy which in fact continues to encourage the use of new and renewable energy in Indonesia.

"Through the groundbreaking of Lumut Balai Unit 2, Pertamina Geothermal Energy has proven its seriousness in developing geothermal potential in Indonesia. We are optimistic that in the future Pertamina Geothermal Energy will be able to encourage the growth of green ecosystems globally and in Indonesia," said Nicke in a statement to the media, Wednesday, December 20.

On the same occasion, Pertamina Geothermal Energy Tbk President Director Julfi Hadi said the Lumut Balai Unit 2 project was also a form of the Company's concrete steps to become 1 GW company.

This project is included in the National Strategic Project based on Presidential Decree No. 3 of 2016 and Minister of Energy and Mineral Resources Regulation No. 40 of 2014.

Julfi explained, with the groundbreaking being carried out, Pertamina Geothermal Energy will accelerate the construction of the Lumut Balai Unit 2 PLTP to the next stage.

"After the groundbreaking, we will accelerate to the engineering design stage, drill the Fluid Collection and Reinjection System (FCRS) foundation and prepare for the transmission line," said Julfi.

Furthermore, he said, this project is targeted to operate by the end of 2024.

PLTP Lumut Balai Unit 2 has the potential to reduce emissions by 581,784 tCO2eq per year.

"This is the Company's step in supporting the government to achieve the national energy mix target of 23 percent by 2025 and net zero emissions by 2060," explained Julfi.

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

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

Meanwhile, in terms of funding, this project has received a stimulus from the Japan International Cooperation Agency (JICA) of 155 million US dollars.

In addition to Lumut Balai Unit 2, Pertamina Geothermal Energy is also developing other geothermal projects to achieve its vision to become a 1 GW company in the next two years.

These projects include Hululais (Unit 1 and 2) of 110 MW and optimization of binary technology in existing areas.