PGEO Accelerates: Building 55 MW Geothermal Power Plant While Entering Data Centre and Hydrogen Businesses
PT Pertamina Geothermal Energy Tbk (PGEO) has officially commenced the Lumut Balai Unit 4 geothermal power plant project with a capacity of 55 MW in South Sumatra. This step is crucial as it adds to the company’s clean energy capacity while opening up potential new revenue streams from non-electricity business expansions.
PGEO is a listed company in the geothermal energy sector, focusing on developing electricity based on geothermal and green energy. The company is one of the main players in Indonesia’s energy transition.
Based on disclosures to the Indonesia Stock Exchange (BEI) and the Financial Services Authority (OJK) on 17 April 2026, PGEO has initiated the early stage of the Lumut Balai Unit 4 project through a kick-off meeting on 17 April 2026.
As the first phase, PGEO has allocated an investment of US$32.21 million for drilling three exploration wells. Initial infrastructure is targeted for completion in October 2027.
The President Director of PT Pertamina Geothermal Energy Tbk, Ahmad Yani, stated that this development not only adds installed capacity but also ensures the sustainability of clean energy supply. According to management, the project is part of the national energy mix targets and the direction towards Net Zero Emissions.
Technically, reservoir simulation results indicate that existing reserves in the Lumut Balai working area can still support the additional new capacity. PGEO targets the Commercial Operation Date (COD) for Unit 4 in 2032.
If the targets are achieved, the total capacity of the Lumut Balai Area will increase to 220 MW, after Unit 3 is planned to operate first in 2030.
Two New Business Lines
In addition to the power plant project, PGEO has also announced plans to add two new business lines, namely the data centre business and hydrogen fuel cell generator (HFCG) rental services.
For the data centre project, PGEO estimates an investment need of around US$19 million for a dedicated 5 MW geothermal power plant. Based on a feasibility study by independent appraiser KJPP RHR, the project is projected to have an IRR of 10.51% and NPV of Rp126.37 billion.
Meanwhile, the hydrogen fuel cell generator business line is estimated to require an investment of Rp1.17 billion with projected IRR of 110.83% and a payback period of about 1 year and 11 months.
The company states that this expansion aims to create new recurring income and optimise the utilisation of geothermal energy through green hydrogen development.
In terms of performance, as of 31 December 2025, PGEO recorded total assets of US$3.03 billion and profit for the year of US$137.66 million.
The final decision on the plan to add business activities will be discussed at the Annual General Meeting of Shareholders (AGMS) on 21 April 2026 in Jakarta.
PGEO continues its core expansion through the construction of a new 55 MW geothermal power plant while preparing business diversification into data centres and hydrogen. This strategy demonstrates the company’s focus on long-term growth based on green energy and recurring revenue sources.