Oil companies change tune after realizing potential of hidden underground energy source: 'Now eyeing'

Yahoo

2 days ago

For years, Indonesia's vast geothermal reserves have simmered below the surface, overlooked by major energy players. Now, some of the world's biggest fossil fuel companies — including Chevron and INPEX — are lining up to invest, reported Indonesia Business Post.
Indonesia's Ministry of Energy and Mineral Resources (ESDM) confirmed that global firms are showing growing interest in the country's geothermal sector, with 10 new project sites expected to be auctioned off between July and September.
The planned expansion is part of the nation's ambitious target to install 5.15 gigawatts of geothermal energy by 2030, a 50% increase from 3.35 GW in the previous plan.
"They need 'green' initiatives to qualify for green investments. That's why foreign fossil energy players are now eyeing geothermal development in Indonesia," said Eniya Listiani Dewi, director general of New, Renewable Energy, and Energy Conservation at ESDM.
Geothermal energy harnesses the Earth's natural heat to generate electricity without needing to rely on the sun or wind.
For countries like Indonesia, which sits on a volcanic ring, that makes geothermal a stable, homegrown alternative to imported dirty energy sources like oil or gas. For oil companies, it presents an easier transition: The drilling methods are similar, and the optics are greener.
Chevron, long criticized for its record on climate and greenwashing, is reportedly seeking to expand its geothermal footprint and has already partnered with PT Pertamina Geothermal Energy on a new 55-megawatt plant in Wai Ratai, per Indonesia Business Post. The company also plans to bid on additional zones once the auction window opens later this year.
Before that can happen, Indonesia is moving to slash red tape that's long stalled geothermal investment. A revision to Government Regulation No. 7/2017 is in the works, aiming to make projects more financially viable by improving the internal rate of return to around 10% to 11% — a key threshold for investors.
"Some WKPs [geothermal working areas] are ready for auction, but we're still awaiting the minister's decision," Eniya said. "Some of the burdens on geothermal projects are embedded in the current regulation. These need to be removed to enhance project viability."
Expanding geothermal energy in Indonesia isn't just about cleaner power; it also has the potential to lower electricity costs, improve air quality, and ease the country's reliance on dirty energy. If successful, it could serve as a blueprint for other countries with geothermal resources to build more resilient, affordable energy systems.
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