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Geo Dipa's Game-Changing Leap: Commercial Silica and Lithium Production from Geothermal Brines by 2028

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By Robert Buluma Alphaxioms
Geo Dipa's Ambitious Leap: Extracting Silica and Lithium from Geothermal Brines by 2028


Introduction

In an era where the global energy transition demands sustainable sources of critical minerals, Indonesia's state-owned PT Geo Dipa Energi (Persero) is positioning itself at the forefront of innovation. By 2028, Geo Dipa plans to commence commercial production of silica and lithium extracted from geothermal brines, a byproduct of its geothermal power operations. This initiative not only diversifies the company's revenue streams but also aligns with Indonesia's broader goals of enhancing renewable energy capacity and supporting the electric vehicle (EV) battery supply chain. 

Geothermal energy, harnessed from the Earth's heat, produces hot brines rich in dissolved minerals like lithium and silica. Traditionally viewed as waste, these brines are now seen as valuable resources. Geo Dipa's strategy builds on years of feasibility studies and international partnerships, leveraging Indonesia's vast geothermal potential—the second-largest in the world after the United States. The company's plans highlight integration of mineral extraction into existing operations at sites like Dieng and Patuha, potentially adding significant economic value. 

Lithium, essential for batteries in EVs and renewable storage, and silica, used in industries from electronics to construction, could generate revenues comparable to electricity sales. This move comes amid surging global demand for lithium, projected to grow exponentially as nations pursue net-zero targets. By tapping into geothermal brines, Geo Dipa aims to offer a greener alternative to traditional mining, reducing environmental footprints and promoting circular economy principles. As the world grapples with supply chain vulnerabilities, Geo Dipa's project could bolster Indonesia's role in the global minerals market, fostering job creation and technological advancement.

Background on PT Geo Dipa Energi

PT Geo Dipa Energi, established in 2002 as a state-owned enterprise under Indonesia's Ministry of Finance, specializes in geothermal exploration, development, and power generation. Initially formed to manage government-assigned geothermal fields, Geo Dipa has evolved into a key player in Indonesia's renewable energy sector. The company operates two major geothermal power plants: Dieng in Central Java and Patuha in West Java, each with a current installed capacity of 60 MW from Unit 1. These sites harness high-temperature geothermal resources, producing clean electricity while managing the associated brines.

Geo Dipa's expansion plans are ambitious. By 2026, Unit 2 at both Dieng and Patuha is expected to come online, adding another 60 MW each and doubling the company's total capacity to 240 MW. Long-term targets aim for 1,000 MW by 2060, including new fields like Candi Umbul Telomoyo (54 MW potential) and Arjuna Welirang (230 MW potential). This growth is supported by international financing, such as a $180 million loan from the Asian Development Bank (ADB) in 2025 to advance geothermal electricity generation.

The shift toward mineral extraction began in the early 2020s. In 2022, Geo Dipa announced plans for a feasibility study on lithium extraction from Dieng brines, recognizing the field's high lithium concentrations of 36-86 mg/L the highest among Indonesian geothermal sites. Potential yields from six units at Dieng could reach 3,300-3,500 tons of lithium over the plant's lifespan, exceeding 100 years. Silica extraction was incorporated into these studies, with brines showing promise for producing colloidal silica. By 2023, ongoing research highlighted the financial equivalence of these minerals to power generation revenues.

In 2025, Geo Dipa secured support from the ADB and the U.S. Trade and Development Agency (USTDA) for detailed studies on lithium and silica extraction. Additionally, a partnership with a Dutch consultancy was formed for a geothermal lithium pilot project. Collaboration with Mandala Consulting provided strategic roadmaps, including market analysis and pilot projects, targeting full-scale lithium production by 2027-2028. These efforts underscore Geo Dipa's transition from pure energy producer to integrated resource manager, aligning with national priorities for energy security and industrialization.

Geothermal Energy in Indonesia: A Foundation for Mineral Innovation

Indonesia sits atop the Pacific Ring of Fire, boasting an estimated 23.9 GW of geothermal potential, of which only about 2.3 GW is currently utilized. This renewable resource provides baseload power with high availability (90-95%), reducing reliance on fossil fuels and cutting CO2 emissions,a 60 MW plant avoids around 400,000 tons annually. Geothermal development supports Indonesia's Just Energy Transition Partnership (JETP), aiming for 23% renewable energy by 2025 and net-zero by 2060.

Geothermal operations involve drilling wells to access hot reservoirs, where water or steam drives turbines. The separated brine, often reinjected to sustain reservoir pressure, contains dissolved minerals leached from rocks. In Indonesia, fields like Dieng exhibit low-salinity, high-temperature brines ideal for mineral recovery. Extracting valuables from these brines enhances project economics, potentially offsetting costs and accelerating development in brownfields, achievable in under five years.

Globally, geothermal-mineral synergies are gaining traction. In the U.S., Salton Sea brines yield lithium alongside power, using direct lithium extraction (DLE) technologies. New Zealand's Geo40 extracts silica from geothermal fluids, preventing scaling while producing commercial products. Indonesia's approach, led by Geo Dipa, could position the country as a lithium exporter, tapping into a market valued at over $10 billion. With lithium demand surging for EVs,expected to reach 3 million tons by 2030,geothermal sources offer a sustainable alternative to hard-rock mining or evaporative ponds, which deplete water and emit high CO2.

Silica, meanwhile, finds uses in tires, paints, and semiconductors. Geothermal-derived colloidal silica is high-purity, commanding premium prices. Indonesia's push includes regulatory support, such as the 2025 Finance Minister Regulation on geothermal incentives. Geo Dipa's integration of extraction technologies could serve as a model, boosting local economies and reducing import dependence.

The Science of Mineral Extraction from Geothermal Brines

Extracting lithium and silica from geothermal brines involves sophisticated processes tailored to the fluid's chemistry,hot, saline, and mineral-laden. For lithium, direct lithium extraction (DLE) is the frontrunner, offering efficiency and minimal environmental impact compared to traditional methods.

DLE encompasses adsorption, ion-exchange, solvent extraction, and membrane technologies. Adsorption uses inorganic sorbents like metal oxides to selectively bind lithium ions from brine, later releasing them with a mild acid wash. This method achieves high recovery rates (over 90%) with low water use (3 m³/ton Li) and zero CO2 emissions per ton. Ion-exchange resins or membranes, such as in electrodialysis, separate lithium via electric fields or selective barriers. Solvent extraction employs organic solvents like crown ethers to pull lithium into an organic phase for purification. Recent advancements include electro-driven systems producing battery-grade lithium hydroxide from brines like those in the Salton Sea.

In geothermal contexts, brines emerge at over 100°C, requiring heat-resistant materials. Challenges include co-extracted impurities like magnesium or boron, addressed through multi-stage purification. Life cycle assessments show DLE from geothermal sources has lower impacts: parametrized models vary emissions based on brine chemistry and energy inputs. For Geo Dipa's Dieng brines, with 36-86 mg/L lithium, DLE could yield high-purity lithium carbonate or hydroxide.

Silica extraction focuses on preventing scaling while recovering value. Geothermal fluids supersaturate with silica upon cooling, risking pipe blockages. Selective removal methods include pH adjustment to 10.5 and increasing Ca/Si ratios above 1.25 to form calcium-silicate-hydrate (C-S-H) phases, achieving over 96% removal in under 30 minutes. Seed-induced precipitation uses silica seeds to accelerate polymerization, while lime or caustic addition forms precipitates. In low-salinity fluids like Dieng's, colloidal silica production is viable, used in high-value applications.

Geo40's patented technology removes silica to eliminate scaling, producing marketable products. For Geo Dipa, integrating silica removal upstream allows brine processing for other minerals without interference. These processes are closed-loop, reinjecting treated brine to maintain sustainability.

 Geo Dipa's Specific Plans and Timeline

Geo Dipa's roadmap for silica and lithium production integrates with its geothermal expansion. Feasibility studies, initiated in 2022 for lithium at Dieng, evolved into comprehensive plans by 2025. In March 2025, ADB and USTDA funding supported detailed extraction studies. By June 2025, a partnership with a Dutch consultancy launched a lithium pilot at Dieng.

Mandala Consulting's strategy includes market analysis using Porter's Five Forces, regulatory mapping in key markets (Europe, China, U.S.), and price forecasting for lithium products. Recommendations outline six steps: pilot refinement, product-market alignment, and phased scaling. High economic feasibility projects full-scale launch by 2027, with commercial operations by 2028.

For lithium, DLE technologies will target brine from expanded units. Potential output: thousands of tons annually, supporting EV batteries. Silica production focuses on colloidal forms, leveraging low-salinity brines. Integration occurs post-power generation, with brine processed before reinjection.

Timeline: Pilots in 2025-2026, scaling in 2027, full production by 2028. This aligns with Unit 2 completions in 2026, providing increased brine volumes. Investments emphasize sustainability, positioning Geo Dipa as a domestic lithium leader with export potential.

Benefits and Impacts

Economically, mineral extraction could match power revenues, diversifying income and improving viability. Environmentally, it's low-impact: zero CO2 for lithium, minimal water and land use. Socially, it creates jobs and supports Indonesia's EV ecosystem.

Challenges

Technical hurdles include brine variability and scaling prevention. Regulatory alignment and initial costs require ongoing support.

Conclusion

Geo Dipa's 2028 target marks a transformative step, blending geothermal power with mineral production for a sustainable future. This initiative could redefine resource utilization worldwide.


Source: Petromindo

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