Geothermal Funding in August and September 2027: Investment Outlook and Intelligence Into 2028 Geothermal funding in August and September 2027 is likely to focus on projects that can demonstrate commercial resource potential, credible drilling plans, secure offtake, and a clear path to construction. The market will increasingly move beyond broad technology experimentation toward financeable geothermal assets supported by government grants, development-finance institutions, strategic investors, utilities, and corporate power buyers. The most significant investment themes will likely include enhanced geothermal systems, exploration drilling, closed-loop geothermal, data-center power supply, conventional geothermal expansion in East Africa, and blended finance for emerging markets. By 2028, investors are expected to distinguish more sharply between companies with proven technical performance and those still dependent on laboratory results or unconfirmed resource estimates. The 2027 Fundin...
Harnessing the Earth's Hidden Fire: UGM's Revolutionary Leap into Geothermal Cooling for a Cooler, Greener Indonesia
Posted on December 14, 2025 | By Robert Buluma
Picture this: It's a blistering afternoon in Jakarta, the kind where the humidity clings to your skin like a second layer, and the air conditioner hums relentlessly, devouring electricity powered by distant coal plants. The planet warms, sea levels rise, and our energy bills skyrocket. But what if the solution to cooling our cities lay not in the sky's fickle sun or the wind's whisper, but deep beneath our feet,in the simmering heat of the Earth itself? This isn't science fiction; it's the bold vision being championed by Universitas Gadjah Mada (UGM), Indonesia's premier academic powerhouse, as they ignite a geothermal revolution for building cooling systems.
In a move that's as groundbreaking as it is timely, UGM is spearheading the transition to clean energy by tapping into Indonesia's vast geothermal reserves,not just for electricity, but for something far more immediate and innovative: space cooling. On December 2-3, 2025, at the elegant Hotel Morrissey in Jakarta, UGM inked a pivotal Memorandum of Understanding (MoU) with global partners InnerSpace and Geoenergis. This alliance isn't mere paperwork; it's a pact to transform how we chill our buildings, slashing fossil fuel dependence and paving the way for resilient, low-carbon cities. Amid the handshakes and champagne toasts, they also unveiled a new book, "The Future of Geothermal: Unlocking Energy Abundance, Security, and Resilience", a manifesto for the geothermal age.
Why does this matter? Indonesia, the world's fourth-most populous nation, sits astride the Ring of Fire,a volcanic belt brimming with geothermal gold. According to the International Energy Agency (IEA), we boast the planet's second-largest geothermal potential, a staggering 2,160 gigawatts of untapped Yet,
paradox of paradoxes, we're still shackled to fossil fuels, importing them at exorbitant costs while our emissions choke the skies. Enter UGM's geothermal cooling initiative: a thermal gradient system that harnesses the Earth's steady subsurface warmth to drive absorption chillers. Forget the roar of compressors; this is silent, sustainable sorcery. Warm geothermal fluids absorb heat from building interiors, cycling it away like a natural thermostat tuned by Mother Nature herself.
At the heart of this MoU ceremony stood Prof. Selo, Dean of UGM's Faculty of Engineering, whose passion for innovation crackles like the geothermal vents he champions. "Through this collaboration," he declared, "the three institutions will implement direct utilization of geothermal energy, particularly for building cooling systems based on thermal gradients—hoped to become an innovative model for cities across Indonesia." Flanking him were Prof. Ali Awaludin, UGM's Vice Dean for Research, Community Service, and Cooperation, alongside Drew Nelson of InnerSpace and Daniel W. Adityatama of Geoenergis. Their signatures weren't just on paper; they etched a blueprint for decarbonization.
But let's peel back the layers of this technology. Traditional air conditioning relies on vapor-compression cycles, guzzling electricity and spewing greenhouse gases. Geothermal cooling flips the script. It exploits the temperature differential between shallow geothermal reservoirs,often just 50-100 meters deep—and ambient air. Hot water from the Earth powers an absorption process, where a refrigerant like ammonia or lithium bromide evaporates and condenses to yank heat from indoor spaces. The beauty? It's 30-50% more efficient than conventional systems, runs on renewable heat rather than grid power, and integrates seamlessly with district cooling networks for entire urban blocks.
This isn't UGM's first geothermal rodeo. The university's Geothermal Research Center has long been a hotbed (pun intended) of innovation, with contributors like Dr. Pri Utami, a Geology Engineering lecturer, leading the charge. In the newly launched book, Dr. Utami's chapter dives deep into Indonesia's geothermal bounty. "The analysis in this book affirms the immense potential of new-generation geothermal in Indonesia, reaching 2,160 gigawatts," she explains. "This figure represents an opportunity for decarbonization and strengthening sustainable energy resilience."
Teaming up with Dr. Kartika Palupi Savitri and Dr. Yan Restu Freski, her work spotlights direct applications: from industrial process heating to urban cooling, all while slashing fossil fuel imports and birthing hundreds of thousands of green jobs.
Jackson Grimes, InnerSpace's Director of Global Engagement, brought an international flair to the event. "There are vast opportunities in utilizing geothermal energy as a solution source for clean cooling processes and industrial heating that can be leveraged beyond sustainable energy generation," he enthused.
His words echo a global chorus: the UN's Sustainable Development Goals (SDGs) are under siege from climate chaos, and geothermal is the unsung hero. SDG 7 (affordable and clean energy)? Check. SDG 13 (climate action)? Absolutely. SDG 11 (sustainable cities)? This cooling tech could redefine urban livability in megacities like Jakarta and Surabaya.
Yet, for all its promise, the path to geothermal glory is strewn with hurdles. Indonesia's energy mix is a fossil-fueled Frankenstein: 60% coal, 20% gas, with renewables lagging at a measly 12%.
Public anxiety over blackouts and price hikes fuels resistance, while upfront costs for drilling and infrastructure daunt investors. "We're addressing the climate crisis head-on," notes Prof. Selo, "by reducing reliance on unstable, high-cost fossil fuels.
UGM's MoU tackles this head-on, blending academic rigor with private-sector muscle to pilot projects that prove viability.
Imagine scaling this: A Jakarta office tower, its glass facade gleaming under the tropical sun, cooled not by diesel-guzzling generators but by the Earth's pulse. Energy costs plummet, carbon footprints shrink, and jobs bloom in drilling, engineering, and maintenance. Dr. Utami envisions a "great transformation for national economic movement" through direct geothermal uses like building cooling and industrial heat supply.
The IEA backs her up: unlocking this potential could create a job bonanza, fortify energy security, and position Indonesia as a green tech exporter.
UGM's vision extends beyond the MoU. They're forging a "new era of abundant, clean, and resilient energy," as Prof. Selo puts it, through relentless research and partnerships.
Picture hybrid systems blending geothermal with solar for 24/7 cooling, or AI-optimized networks that predict heat loads. Challenges like seismic risks or brine management? They're on the innovation docket, with UGM's labs churning out solutions.
This isn't just about tech; it's a narrative of national pride. Indonesia, the archipelago of fire and water, has slumbered on its geothermal throne. Now, UGM is the alarm clock, rousing us to abundance. As Dr. Utami quotes the IEA, our reserves are "the largest second in the world," a sleeping giant ready to awaken.
In the grand tapestry of global climate action, stories like UGM's are the threads that bind hope to reality. While world leaders convene in gilded halls, it's universities like Gadjah Mada—grounded in Javanese wisdom yet gazing global that drive true change. This MoU is more than ink; it's ignition.
So, what's next? Pilot projects in Yogyakarta, perhaps, cooling UGM's own campuses as living labs. Collaborations with ASEAN neighbors to export this model. And you, dear reade,whether policymaker, engineer, or eco-curious citizen,have a role. Support green policies, demand sustainable builds, or dive into geothermal studies. The Earth is heating up, but with innovators like UGM, we're cooling it down, one building at a time.
As Prof. Selo concludes with fervor: "UGM hopes its contribution can accelerate the birth of a new era of abundant energy that is safe, clean, and resilient against Indonesia's future challenges." Let's fan those flames. The future isn't just hot—it's geothermal.
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