First Gen, Indonesian partner seal joint-venture deal

First Gen Corp. has formed a joint venture with an Indonesian firm to tap 24,000-megawatt (MW) geothermal power potential in the equatorial country.

The Lopez-led group said on Wednesday that PT FirstGen Geothermal Indonesia sealed a pact with PT DSSR Daya Mas Sakti (DSSR) for this plan. Their initial target is about 440 MW of development across six sites in West Java, Flores, Jambi, West Sumatra and Central Sulawesi.

DSSR, which is focused on geothermal energy development, is a subsidiary of power and infrastructure giant PT Dian Swastatika Sentosa Tbk.

PT FirstGen Geothermal Indonesia, meanwhile, is a unit of Energy Development Corp. (EDC). EDC serves as First Gen’s renewable energy arm, with businesses in solar, wind and geothermal power.

Francis Giles Puno, vice-chair and chief executive officer of EDC, said the company is ready to extend its decades-long expertise in tapping geothermal resources.

First Gen, through EDC, has a total capacity of 1,480.19 MW, accounting for almost 20 percent of the country’s installed renewable energy capacity. The bulk of this portfolio comes from its geothermal operations.

“By combining EDC’s global capabilities with DSSR’s strong local presence, this joint venture will not only develop projects, but also build capacity and transfer knowledge that will leave a lasting impact on Indonesia’s renewable energy sector,” Puno, who is also president and chief operating officer of First Gen, said in a statement.

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The Indonesian counterpart is optimistic about fast-tracking the expansion of geothermal energy in its home soil.

“Our goal is to strengthen national capacity in geothermal development and to fully harness the country’s natural potential for clean energy. Together, we aim to create real value for communities, the economy and the environment,” said Lokita Prasetya, president director of DSSR and vice president director of PT Dian Swastatika Sentosa Tbk.

First Gen notes that Indonesia hosts around 40 percent of the world’s geothermal energy reserves, or about 24,000 MW of capacity. So far, only 10 percent of such reserves has been tapped.