Skip to main content

A Whooping $126 Million Streams Into Indonesian Geothermal From USA

Exciting News: The United States Commits $126 Million to Indonesian Geothermal Energy Project

By:Robert Buluma

JAKARTA, INDONESIA – In a powerful stride towards a sustainable future, the U.S. International Development Finance Corporation (DFC) has announced a landmark investment of up to $126 million in the Indonesian power company PT Medco Cahaya Geothermal. This significant commitment, unveiled by DFC’s Deputy Chief Executive Officer Nisha Biswal, underscores a deepening partnership between the United States and Indonesia in the realm of renewable energy.

A Boost for Indonesia’s Energy Security

The investment will bolster the development of the Ijen Geothermal power plant’s 31MW Phase I in East Java, a densely populated province with 40 million residents. This project promises to enhance the Java-Bali grid, Indonesia's largest power system, by providing essential low-carbon baseload power. With this initiative, the United States and Indonesia are not only aiming to strengthen energy security but also to promote a cleaner and more sustainable energy infrastructure.

Strategic Partnership for a Just Energy Transition

The timing of this commitment is crucial as Indonesia pursues its Just Energy Transition Partnership (JETP), an initiative forged with global leaders during its G20 presidency. Power grid enhancements are pivotal to this strategy, and the Ijen Geothermal project is set to play a key role. The project exemplifies the collaborative spirit between Indonesia and the United States, highlighting their shared goals in advancing infrastructure, renewable energy, and small business support.

Reinforcing Shared Goals

At the ceremonial signing event in Jakarta, DCEO Nisha Biswal emphasized the importance of this project within the broader U.S.-Indonesia Comprehensive Strategic Partnership. "The Ijen Geothermal power plant is a key part of Indonesia’s ambitious strategy for an energy transition," said Biswal. "This project also reinforces our shared goals through the U.S.-Indonesia Comprehensive Strategic Partnership, which will enhance economic and energy security for both of our countries."

A History of Investment and Empowerment

This latest investment follows a November 2023 announcement by the DFC, which saw $131 million funneled into small businesses and women’s economic empowerment in Indonesia. These initiatives are part of the U.S. Government's broader Indo-Pacific Strategy, which includes the Indo-Pacific Economic Framework and the Partnership for Global Infrastructure and Investment, all aimed at bolstering economic ties and infrastructure development in the region.

The Road Ahead

The U.S. International Development Finance Corporation continues to lead with investments that address critical challenges in developing countries. From energy and healthcare to infrastructure and small businesses, DFC's projects are designed to uphold high standards, respecting the environment, human rights, and worker rights.

As Indonesia and the United States advance their partnership through groundbreaking projects like the Ijen Geothermal power plant, the future looks brighter for sustainable energy and economic development in the region. This collaboration not only sets a precedent for future initiatives but also exemplifies the power of international cooperation in tackling global challenges.

As the world grapples for a Just Energy transition we have also seen Oil and gas companies also going beyond Geothermal

Stay tuned for more updates on this and other transformative projects shaping the future of Indonesia and its dynamic partnership with the United States.

Source:Us Embassy

Connect With Us:Alphaxioms

Comments

Hot Topics

Fervo Energy Pushes Boundaries with 15,000-FT, 500°F Geothermal Well

Fervo Energy Pushes Boundaries with 15,000-FT, 500°F Geothermal Well — Ushering in a New Era for Enhanced Geothermal Systems June 10, 2025 – By Robert Buluma In a stunning feat of engineering and innovation, Fervo Energy has announced the successful drilling and logging of its Sugarloaf appraisal well, marking a monumental leap in the advancement of Enhanced Geothermal Systems (EGS). Clocking in at an impressive 15,765 feet of true vertical depth and aiming for a bottomhole temperature of 520°F , this well not only sets new records but also firmly positions geothermal energy as a major player in the clean energy race. Breaking Records, Redefining Possibilities What makes this well particularly revolutionary is Fervo’s drastic 79% reduction in drilling time — completing the ultradeep well in just 16 days compared to the U.S. Department of Energy’s baseline expectations. Along the way, the company shattered several drilling records, including: Bit run length: 3,290 feet Average rate...

Meta and XGS Energy Partner on 150 MW Geothermal Power Project in New Mexico

Meta and XGS Energy Partner on 150 MW Geothermal Power Project in New Mexico A Game-Changer for AI, Clean Energy, and the Future By Robert Buluma – Alphaxioms Energy Blog In a bold move that signals the future of energy and technology convergence, XGS Energy and Meta Platforms, Inc. have announced a groundbreaking agreement to develop 150 megawatts (MW) of next-generation geothermal energy in New Mexico. This partnership not only promises to reshape the state's energy landscape but also underscores the growing demand for sustainable, round-the-clock power to fuel the age of artificial intelligence (AI) and data-driven economies. Clean Power Without Water – XGS’s Unique Edge At the heart of this partnership lies XGS Energy’s proprietary solid-state geothermal technology. Unlike traditional geothermal systems that rely heavily on water and specific geological conditions, XGS’s innovation enables electricity production from hot, dry rock  with zero operating water use. This water-inde...

Geothermal Colonialism or Global Partnership?

The Ethics of Foreign Investment in African Geothermal Resources By:  Robert Buluma Beneath the surface of Africa lies a force powerful enough to revolutionize the continent's energy future: geothermal energy. With its promise of clean, sustainable, and reliable baseload power, geothermal is no longer just a hidden treasure it's a strategic resource. Yet, as the interest of foreign investors grows in the Rift Valley and beyond, so do the ethical questions. Are these investments empowering Africa or quietly replicating patterns of resource exploitation? This article delves deep into the ethical implications of foreign investment in Africa's geothermal sector. We explore case studies across the continent, highlight emerging concerns, and present a framework for ensuring that Africa benefits from its geothermal riches without surrendering control or sovereignty. The African Geothermal Boom: A Global Attraction Africa, particularly along the East African Rift System (EARS)...

Iceland Heats Up the Canaries: Reykjavík Geothermal to Ignite Tenerife’s First Geothermal Drilling This Autumn

In a bold and historic leap towards clean energy, Tenerife is gearing up for its first-ever geothermal drilling for energy production , thanks to a visionary collaboration led by Reykjavík Geothermal (RG) of Iceland and local energy giant DISA .  By:  Robert Buluma The project marks a seismic shift in how the Canary Islands approach renewable energy quite literally. As the autumn breeze begins to roll in over the volcanic landscapes of Tenerife, drilling rigs will roar to life , signaling the dawn of a geothermal revolution in the region. This isn’t just another renewable energy project  it’s the birth of an entirely new energy frontier , and Iceland is right at the helm. 🌍 A Northern Powerhouse in a Southern Paradise Renowned for harnessing its own geothermal resources with unmatched expertise, Iceland has long been the benchmark for clean, sustainable energy. Now, Reykjavík Geothermal is exporting that excellence to the Canary Islands through a trailblazing partner...

PPC Renewables Announces Geophysical Assessment Tender In Tetra, Lesvos Greece

Unveiling the Hidden Mysteries:  PPC Renewables Calls for Tender in Petra, Lesvos Island By: Robert Buluma In the heart of the Aegean Sea lies an island of unparalleled beauty and historical significance – Lesvos. But beneath its serene surface lies a mystery waiting to be unraveled, and  PPC Renewables is taking the lead in uncovering it. Picture this: Land Geophysical Surveys, delving deep into the secrets of Petra, Lesvos Island, Greece. It's not just any ordinary survey; it's a journey into the unknown, a quest for knowledge hidden beneath the earth's surface. Referring to the intriguing Call for Tenders (ref/title: PR110000001319) dated 12th April 2024,  PPC Renewables beckons the daring and the curious to join them in this adventure. The scope of the contract? Nothing short of extraordinary – 2D Seismic Reflection, Gravity & Magnetic Surveys with precise positioning, coupled with integrated Geological-Tectonic-Geophysical analysis of all available data. But w...

G24 and Eco Cloud To Put Up a1GW Geothermal Data Center In Kenya

Kenya and UAE Sign Deal to Develop First-Ever Geothermal Powered Data Centre By  Robert Buluma Published on: March 07, 2024 06:13 (GMT) In a groundbreaking move towards sustainable technology, Kenya and the United Arab Emirates (UAE) have inked a historic agreement to construct the world's first data centre powered entirely by geothermal energy. This momentous event was witnessed by President William Ruto, marking a significant step forward for Kenya's digital infrastructure. The memorandum of understanding signed between Kenya's EcoCloud and UAE's G42 represents a pivotal moment in the convergence of technology and environmental conservation. Under this partnership, a colossal 1GW mega data centre will be erected, catapulting Kenya's digital economy to unprecedented heights. Amos Siwoi, CEO of EcoCloud, emphasized the importance of this initiative, stating, "By harnessing geothermal energy, we are not only meeting the region's data needs but also setting a...

Fervo Energy’s Potential IPO: A Turning Point for Geothermal Energy

The geothermal energy sector is witnessing a significant transformation , and Fervo Energy is at the forefront of this change.  By: Robert Buluma The innovative geothermal startup, known for integrating oil and gas drilling techniques into geothermal energy production, is considering an initial public offering (IPO) as early as next year. This potential move comes at a time when energy demand from data centers is skyrocketing , driven by artificial intelligence, cloud computing, and the ever-expanding digital economy. The global push for clean, reliable, and scalable energy solutions is creating an unprecedented opportunity for geothermal energy to emerge as a mainstream renewable power source . With substantial financial backing, strategic partnerships, and groundbreaking technology , Fervo Energy is reshaping how geothermal energy is developed and deployed. This article explores Fervo’s journey, its technological innovations, the impact of its IPO on the clean energy market...

Bill Gates Visits Fervo Energy: Exploring the Future of Geothermal Power

  Robert Buluma Bill Gates recently visited Beaver County, Utah, to tour Fervo Energy’s Cape Station, which is poised to become the world’s largest enhanced geothermal power plant. In a LinkedIn post, Gates highlighted the project's innovative use of horizontal drilling techniques adapted from the oil and gas industry to access geothermal heat more efficiently. This approach allows for the utilization of geothermal resources in areas previously considered unsuitable for traditional geothermal methods . The Cape Station project is expected to deliver up to 400 MW of power, with initial production of 70 megawatts slated for 2026 and full capacity expected by 2028. The project has secured power purchase agreements to supply electricity to approximately 350,000 homes in Southern California . Gates emphasized that geothermal energy is a promising solution for delivering reliable, low-carbon power, especially as demand for affordable energy grows. He also noted that Fervo Energy's...

Alberta’s $20 Million Bet on Drilling Innovation: Why Eavor is a Key Contender in the Alberta Drilling Accelerator

Alberta’s $20 Million Bet on Drilling Innovation: Why Eavor is a Key Contender in the Alberta Drilling Accelerator Date: June 13, 2025 Author:  Robert Buluma Alphaxioms Energy Insights A Bold Step Forward in Drilling Technology Alberta is once again proving that it’s not just rich in natural resources it’s rich in ambition. On June 10, 2025, the Government of Alberta announced a game-changing $20 million investment into the newly launched Alberta Drilling Accelerator (ADA) program, an initiative designed to push the boundaries of drilling innovation. This funding, administered through Emissions Reduction Alberta (ERA), targets emerging technologies that promise to reduce emissions while enabling responsible energy production. With its world-class expertise in oil and gas drilling, and increasing momentum in geothermal, lithium, and critical minerals, Alberta is positioning itself to be the global nerve center of next-generation drilling. And among the hopefuls vying to leverage th...

Neptune Energy To Extract Lithium From Geothermal Brine In Altmark Germany

Revolutionizing Energy:  Neptune Energy Bold Move Towards Sustainability in the Altmark By: Robert Buluma In a groundbreaking development poised to reshape the energy landscape,  Neptune Energy is spearheading a transformative initiative in the Altmark region of Germany. With licenses secured for the extraction of lithium and geothermal energy,  Neptune Energy is set to pioneer innovative solutions in the realm of green energy production. The journey towards sustainability begins with  Neptune Energy commitment to harnessing the potential of lithium and geothermal energy resources. With exclusive mining permits granted by the State Office for Geology and Mining in Saxony-Anhalt,  Neptune Energy is poised to revolutionize energy production in the Altmark. Dr. Andreas Scheck, Managing Director of Neptune Energy, envisions the Altmark as a beacon of future-oriented technology, where traditional energy practices seamlessly transition into eco-friendly alternativ...