Pertamina Geothermal Energy Explores Collaboration with AGIL to Develop Longonot Concession in Kenya

Kenya, August 22, 2023 – PT Pertamina Geothermal Energy Tbk. (PGE) (IDX: PGEO) is exploring collaboration with Africa Geothermal International No. 1 Limited (AGIL No. 1) to develop the geothermal potential in the Longonot concession in Kenya.

The second step on both sides is the signing of a Memorandum of Understanding (MoU) by Dr. Fred N. Ojiambo, MBS, SC, Board of Directors of Africa Geothermal International Limited (AGIL), and Julfi Hadi, CEO of PT Pertamina Geothermal Energy Tbk., in Nairobi, Kenya on Sunday (20/08).

AGIL is a subsidiary of AGIL No.1, a limited company in Kenya engaged in geothermal energy development. It includes the Longonot concession area in Kenya, which has a development potential of up to 500 megawatts (MW), with 140 megawatts (MW) ready for exploitation.

Julfi Hadi, CEO of PT Pertamina Geothermal Energy Tbk., explained that the MoU with AGIL is a strategic step for PGE in technology development and utilization of geothermal resources abroad. "Longonot has the advantage of location and geological position, making it an attractive prospect. Through this collaboration, PGE has the opportunity to contribute to new renewable energy development while striving to become a global geothermal producer," he said.

Julfi added that Africa is a new economic growth epicenter, creating a favorable investment climate. In geothermal development, Kenya is at the forefront in Africa with an installed capacity of 865 MW, and ranks 7th globally.

As a geothermal producer, he revealed that PGE and AGIL have expertise and extensive experience developing geothermal as renewable energy. "Certainly, we hope that this collaboration in the form of geothermal development cooperation can enhance the business exposure for both parties," he said.

Currently, Indonesia has an installed capacity of 2,356 MW, of which 80% or about 1,877 MW comes from PGE's work areas, with 672 megawatts (MW) managed directly by PGE. PGE aims to independently develop an installed capacity of up to 1 gigawatt (GW) in the next two years.

"We are optimistic that Pertamina Geothermal Energy's strategic efforts in Africa can support the company's target to increase installed capacity, expand the portfolio of clean energy internationally, achieve the company's aspiration for a clean energy world, and support efforts to reduce greenhouse gas emissions and dependence on fossil energy sources," Julfi added.

The signing of the collaboration during the President of Indonesia, Joko Widodo, state visit to Kenya. Also present during this visit was the President Director of PT Pertamina (Persero), Nicke Widyawati.

Nicke Widyawati, President Director of PT Pertamina (Persero), stated that Pertamina's presence as part of Indonesia's state-owned enterprises carries the spirit of continuing the Asia-Africa Conference in Bandung four decades ago. This time, that spirit is in the form of strategic economic cooperation between countries. "In the energy transition context, Pertamina's cooperation covers upstream and downstream businesses. We are open to all opportunities, including geothermal development in Kenya," she said.

Fadjar Djoko Santoso, Vice President of Pertamina, added that the MoU signing between PGE and AGIL is one of the agendas in the Pertamina Group's visit to explore cooperation potential in Africa. These collaborations are to strengthen national energy resilience and realize the company's role as a global energy company. "We are open to all business cooperation opportunities with a positive impact on Pertamina and the country," Fadjar said.**