Ormat’s 35MW Ijen Geothermal Plant Goes Live: A Game-Changer for Indonesia’s Renewable Energy Future

Ormat’s Ijen Geothermal Power Plant: A Bold Step Toward Indonesia’s Renewable Energy Goals

In a significant move toward expanding Indonesia’s geothermal capacity, Ormat Technologies Inc. (NYSE: ORA) has commenced commercial operations for the 35MW Ijen Geothermal Power Plant in East Java. This milestone not only strengthens Ormat’s global footprint but also aligns with Indonesia’s ambitious target of adding 7.2GW of geothermal capacity by 2035.

We had done a research article earlier on how Ormat had drilled exploratory wells in the region and this is good progres

Powering Indonesia’s Future with Geothermal Energy

The Ijen Geothermal Facility, jointly developed with PT Medco Power Indonesia, will ultimately reach a total capacity of 110MW under a 30-year power purchase agreement (PPA). Currently, the plant is supplying 35MW of clean, baseload electricity to the Java grid, a crucial step in diversifying Indonesia’s energy mix.

This previous article highlighted much indepth details on how the companies conducted business

This project showcases Ormat Energy Converter (OEC) technology, which is known for efficiently harnessing geothermal resources across varying temperatures. With Ormat holding a 49% stake in the facility through PT Medco Cahaya Geothermal (MCG), the project highlights a strong international partnership driving sustainable energy development.

Strengthening Ormat’s Global Presence

Doron Blachar, CEO of Ormat Technologies, emphasized the company’s commitment to geothermal expansion:

“The launch of the Ijen facility is a key step in our strategy to consistently and accretively grow our leading global geothermal energy portfolio and expand our presence in Indonesia.”

Ormat, with over five decades of experience, has established itself as a leader in geothermal and recovered energy generation (REG). The company currently boasts a global energy portfolio of 1,537MW, spanning key markets such as the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe.

And just recently the company had partnered up with Archi A Geothermal company already making headlines in the sector

With its deep expertise, Ormat is not only pushing the boundaries of geothermal development but is also expanding into energy storage and solar PV technologies, reinforcing its role in the clean energy transition.

The Bigger Picture: Indonesia’s Geothermal Potential

Indonesia holds one of the largest untapped geothermal reserves in the world, estimated at 29GW. However, only a fraction of this potential has been developed. Projects like the Ijen Geothermal Facility play a crucial role in bridging the gap, providing a stable, renewable energy source while supporting the country’s net-zero ambitions.

The Indonesian government’s geothermal-friendly policies, coupled with partnerships between international and local players, are setting the stage for rapid geothermal expansion. As Ormat and Medco Power continue their collaboration, the Ijen project is just the beginning of a much larger transformation in Indonesia’s energy landscape.

When you see companies like Ormat merging with SLB just to get the steam gushing , its obvious Geothermal is yet to reach its peak.

Final Thoughts

Ormat’s successful COD at Ijen is a testament to the growing role of geothermal energy in the global energy transition. By harnessing Indonesia’s volcanic riches, Ormat is not just lighting up homes but also driving economic growth, job creation, and carbon reduction.

With the world looking for cleaner and more sustainable energy solutions, projects like Ijen reaffirm geothermal power as a key player in the renewable revolution. Could this be a stepping stone to an even larger geothermal boom across Southeast Asia? Only time will tell, but one thing is certain geothermal energy is heating up the future.

Source:Ormat

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