By Sheldeen Joy Talavera, Reporter
LOPEZ-LED First Gen Corp. will allocate up to $80 million (P4.5 billion) as its initial investment in a geothermal development project in Indonesia with PT DSSR Daya Mas Sakti (DSSR), a local geothermal energy company.
“The first phase is probably around $30 million,” First Gen President and Chief Operating Officer Francis Giles B. Puno told reporters last week, noting the venture will move to a drilling campaign in later phases.
The drilling, expected to begin next year, would cost about $30 million to $50 million, he said.
First Gen Vice-President Erwin O. Avante said the companies are targeting a portfolio of six geothermal projects from the planned drilling campaigns.
In August, Energy Development Corp. (EDC) announced that its subsidiary PT First Gen Geothermal Indonesia had entered into an agreement with DSSR to develop geothermal resources with a total capacity of 440 megawatts (MW) across Indonesia.
The partnership will cover six strategic fields in West Java, Flores, Jambi, West Sumatra, and Central Sulawesi.
DSSR is an indirect subsidiary of PT Dian Swastatika Sentosa Tbk (DSSA), which is engaged in geothermal energy development.
Founded in 1996, DSSA is part of Sinar Mas, one of Indonesia’s largest conglomerates with businesses spanning energy, infrastructure, financial services, and real estate.
Mr. Puno described Sinar Mas as a “very established” conglomerate, calling the venture a strong platform for geothermal development in the region.
“Globally, Indonesia has the largest potential for geothermal… the decarbonization journey of Indonesia is really just starting because basically, they are very reliant on coal,” he said.
“If a company like First Gen can help champion Sinar Mas and the Indonesian government to develop more renewable energy sources that’s cost-competitive, then that’s a good start as far as enlarging renewable energy footprint in a country like Indonesia.”
The Philippines’ installed geothermal energy capacity stands at 1,952 MW, making it the third-biggest producer in the world after Indonesia and the United States.
EDC, the renewable energy arm of First Gen, has an installed capacity of 1,480.19 MW, representing around 20% of the country’s total renewable energy capacity. Since 1976, it has led the exploration, development, and operation of geothermal power facilities in Bicol, Leyte, Negros Island, and Mindanao.
Outside the Philippines, EDC has secured rights to explore and drill two greenfield geothermal projects from Indonesia’s Ministry of Energy and Mineral Resources.
Although the company is not currently pursuing other foreign markets, Mr. Puno said it remains open to opportunities abroad.
“Essentially, as long as there’s opportunity to look at geothermal in any country, we will look at it, because we want to have a very strong footprint in geothermal, not only in the Philippines, but in other countries as well,” he said.
