Energy Development Corp. (EDC), the renewable energy arm of First Gen Corp. of the Lopez Group, was granted surface exploration and drilling rights, also known as the preliminary survey assignments plus exploration (PSPE), for two greenfield geothermal projects in Indonesia.
Indonesia’s Ministry of Energy and Mineral Resource awarded the PSPE for the Koto Sani Tanjung Bingkung and Bora Pulu geothermal projects at the 10th Indonesia International Geothermal Convention and Exhibition on Sept. 18 to 20, 2024 at Jakarta Convention Center.
Koto Sani Tanjung Bingkung and Bora Pulu have an estimated capacity of 40 megawatts for each concession area with a combined investment cost of about $228 million per area.
“This achievement marks a significant milestone in realizing EDC’s mission to forge collaborative pathways to a decarbonized and regenerative future, not only in the Philippines but in the region as well and beyond,” said EDC head of business development–international Jeff Caranto.
EDC expects to have a definite potential of the geothermal capacity of the concession areas after completing the 3G or geoscientific exploration survey.
Caranto received the concession awards at the event, where Indonesian President Joko Widodo was also present to underscore the importance of geothermal energy in the country’s energy transition targets.
Caranto said the move aligns with EDC’s growth strategy as part of the 13,000-MW low-carbon energy portfolio of First Gen targeted by 2030, 9,000 MW of which will be from renewable energy.
EDC also has a concession in Graho Nayabu in Sumatra, Indonesia. It also previously committed to developing other geothermal projects in Indonesia, Peru, Taiwan and Chile as part of its expansion.
“Although the COVID situation and the accompanying travel restrictions have caused some delays in EDC’s activities in Indonesia and Taiwan, the company continues to be keen on those markets,” EDC said in 2021.
EDC said it would continue pre-development activities in its geothermal concessions in Indonesia, Chile and Peru.
The company said it was also looking at Taiwan for potential expansion because of its favorable feed-in tariff for geothermal energy.
