Pertamina Geothermal Energy, GDC And AGIL Ready To Explore Two Geothermal Fields In Kenya

Pertamina Geothermal Energy, GDC and AGIL agreed to accelerate the development of 2 geothermal fields in Kenya. (Doc. Pertamina)

JAKARTA - PT Pertamina Geothermal Energy Tbk (PGE) reached an agreement with the geothermal development company Kenya, Geothermal Development Company Ltd. (GDC) and Africa Geothermal International Ltd. (AGIL), to accelerate the development of geothermal fields in the African country.

President Director Julfi Hadi said the exploration of two geothermal fields in Kenya developed by PGE and its two partners is expected to start in 2024.

Julfi added that the meeting in Nairobi was a follow-up to the initial agreement that had been reached with GDC and AGIL in 2023. PGE and GDC on September 15, 2023 signed a Non-Disclosure Agreement (NDA) for the development of geothermal potential in Kenya and Indonesia.

"Previously, on August 22, 2023, PGE and AGIL signed a Memorandum of Understanding (MoU) for the development of the Longonot geothermal field located in the Great Rift Valley area, Kenya," he said in a statement to the media quoted Monday, March 11.

One of the main agendas of the follow-up meeting with GDC is to discuss the results of the initial technical study by PGE on the Suswa field which is estimated to have a potential resource of 200 MW. However, further studies are still needed to confirm the amount of this potential through exploration drilling.

To that end, PGE and GDC have planned the signing of a Joint Development Agreement (JDA) which will regulate the role of GDC in exploration on the first 2 wells through a government drilling scheme and possible continued exploration of three other wells that PGE will carry out.

"We are targeting the implementation of the JDA to be targeted in mid-2024 and the drilling target by the GDC by the end of 2024 or early 2025," said Julfi Hadi.

According to PGE Exploration and Development Director Rachmat Hidajat, after exploration drilling, a feasibility study will be conducted to obtain a power purchase agreement at a proper rate.

"Acceleration needs to pay close attention to all stages and various aspects so that project developments are clearer and more measurable," said Rachmat Hidajat.

The acceleration of the development of Suswa Field gradually as many as 4 units of PLTP, each with a capacity of 50MW with a target commercial operation date (COD) unit 1 in 2027. The main target is to make the Suswa project a world-class geothermal field with a capacity of 500 MW.

Meanwhile, PGE and AGIL have also agreed on a number of technical aspects, including the preparation of a joint venture that will develop the Longonot field. In addition, PGE and AGIL have agreed to purchase 140 MW of power purchase agreement and for the initial stage PGE will conduct exploration drilling of 35 MW which is targeted to be on stream in 2027.

"To accelerate the implementation of this agreement, the parties will sign a definitive agreement after obtaining the internal approval of their respective corporations," said Julfi Hadi.

The PGE collaboration and its partners in the development of the Suswa and Longonot fields in Kenya marked PGE's move to become a global player in the geothermal sector and made Kenya a hub for PGE's geothermal development abroad as part of its contribution towards Net Zero Emission (NZE) globally. This collaboration is fully supported by the Kenyan Government through the presence of the Ministry of Energy and Mineral Resources of Kenya and will be supported by relevant stakeholders, including The Energy and Petroleum Regulatory Authority (EPRA), Kenya Power & Lightning Company (KPLC), and Ketraco, at the PGE and GDC meetings.