ARKANSAS, Oct 19 (Future Headlines)- Indonesia, a nation abundant with geothermal energy potential, is making significant strides in the development of clean and sustainable power generation. PT Barito Renewables Energy (BREN), a publicly listed company, is spearheading efforts to harness this renewable resource. In an information disclosure to the Indonesian Stock Exchange, BREN shared updates on its geothermal power projects, including the nearing completion of the 15-MW Salak binary geothermal power plant. This article delves into BREN’s initiatives, emphasizing its commitment to harnessing the nation’s geothermal potential.
BREN’s subsidiary, Star Energy Geothermal, is on the cusp of achieving a significant milestone in the clean energy sector. The company is diligently working towards completing and initiating operations at the 15-MW Salak binary geothermal power plant by the end of 2023.
The Salak geothermal project has reached an impressive 95.3% completion rate, signifying that it is approaching its operational stage. At this juncture, the primary tasks remaining include connecting the power plant to transmission networks and conducting the essential commissioning processes.
The project’s journey has not been without its share of challenges and delays. Initially, Ormat, a prominent geothermal power plant specialist, was contracted to deliver and set up the Salak plant, with the expectation of commencing commercial operations by 2022. Despite these expectations, project delays arose, causing setbacks.
Notably, BREN recently underwent a pivotal transformation, transitioning into a publicly listed company through an initial public offering (IPO). The IPO entailed the issuance of 4,015,000,000 shares at a rate of IDR 780 per share. Astonishingly, the IPO received immense support from investors, garnering oversubscription rates of 135 times.
The IPO generated funds of approximately IDR 3.13 trillion (equivalent to around USD 198 million). BREN’s decision to go public and its substantial success in raising capital underscore the growing interest in renewable energy and the company’s dedication to advancing geothermal and other clean energy technologies.
The proceeds from the IPO have been earmarked for specific purposes, as disclosed in the company’s prospectus. These include debt repayment to Bangkok Bank Pcl and financing the acquisition of geothermal power plants in Java, a strategic move in expanding BREN’s clean energy footprint. Additionally, BREN’s CEO, Hendra Soetjipto Tan, highlighted the IPO’s role in supporting the company’s broader renewable technology ventures, which extend beyond geothermal power.
BREN’s commitment to improving and expanding Indonesia’s geothermal energy landscape is further exemplified through its retrofitting project at the existing Salak geothermal power plant. The objective of this endeavor is to enhance the plant’s capacity by an impressive 7.2 MW.
This capacity boost will be achieved by replacing outdated power plant technologies and support equipment with state-of-the-art counterparts. The retrofit project is strategically planned to be operational by the end of 2025, ensuring that the Salak geothermal facility remains an efficient and sustainable power generation asset for years to come.
In addition to its ongoing projects, BREN remains committed to advancing geothermal energy exploration in Indonesia. The company is actively conducting preliminary geothermal exploration surveys in two prospective locations: Hamiding in North Maluku and Sekincau in Lampung. These exploration activities reflect BREN’s vision of expanding the utilization of geothermal energy across Indonesia.
PT Barito Renewables Energy is at the forefront of Indonesia’s transition to clean and sustainable energy sources, particularly geothermal power. The imminent completion of the Salak binary geothermal power plant underscores the nation’s commitment to harnessing its geothermal potential. Furthermore, the successful IPO and ambitious retrofit project at the Salak geothermal facility emphasize BREN’s role in expanding and enhancing Indonesia’s renewable energy landscape. With ongoing exploration efforts in promising geothermal prospects, BREN’s contribution to Indonesia’s sustainable energy future remains a beacon of progress and promise.
Reporting by Kevin Wood; Editing by Sarah White