Philippines’ First Gen, Sinar Mas To Develop Over $2 Billion Of Geothermal Projects In Indonesia - Forbes
Philippines’ First Gen, Sinar Mas To Develop Over $2 Billion Of Geothermal Projects In Indonesia - Forbes
Published December 22, 2025
Philippines’ First Gen and Sinar Mas to Invest Over $2 Billion in Geothermal Projects in Indonesia
First Gen Corporation, a leading energy company in the Philippines, has announced a significant partnership with Indonesia's Sinar Mas Group to develop geothermal energy projects in Indonesia. The collaboration is set to involve an investment exceeding $2 billion, marking a substantial commitment to renewable energy in the region.
Both companies have signed a joint venture agreement to explore and develop geothermal resources, which are abundant in Indonesia. This partnership aims to tap into Indonesia's vast geothermal potential, which is among the largest in the world, with an estimated capacity of over 29,000 megawatts (MW). Currently, Indonesia ranks second globally in geothermal energy production, trailing only the United States.
The agreement was formalized during a recent ceremony attended by executives from both companies. First Gen, which is a subsidiary of the Lopez Group, has been a pioneer in renewable energy in the Philippines, focusing on clean and sustainable energy solutions. The company has a diverse portfolio that includes hydro, wind, solar, and geothermal power generation.
Sinar Mas, a conglomerate with interests spanning various sectors, has been increasingly involved in renewable energy initiatives. The partnership with First Gen represents a strategic move to expand its footprint in the renewable energy sector, particularly in geothermal energy, which is seen as a reliable and sustainable energy source.
The geothermal projects will be developed in several phases, with the initial focus on exploration and resource assessment. Once the geothermal resources are confirmed, the companies will proceed with the development of power plants capable of harnessing this energy. The estimated timeline for the initial phase is expected to take several years, with commercial operations anticipated to begin in the mid-2020s.
Geothermal energy is considered a highly sustainable energy source because it harnesses heat from the Earth’s core. This renewable energy source is not only environmentally friendly but also provides a stable and continuous power supply, unlike solar and wind energy, which are intermittent. The ability to generate baseload power makes geothermal energy an attractive option for meeting growing energy demands.
In Indonesia, the government has been actively promoting the development of renewable energy sources, including geothermal energy, as part of its commitment to reduce greenhouse gas emissions and transition towards a more sustainable energy future. The country aims to generate 23% of its energy from renewable sources by 2025, with geothermal energy playing a crucial role in achieving this target.
First Gen's President and COO, Francis Giles B. Puno, expressed optimism about the partnership, stating that the collaboration with Sinar Mas will leverage both companies' expertise in geothermal energy development. He emphasized the importance of renewable energy in addressing climate change and ensuring energy security for future generations.
The partnership also aligns with First Gen's broader strategy to expand its renewable energy portfolio. The company has been actively seeking opportunities to invest in clean energy projects, both domestically and internationally. The collaboration with Sinar Mas represents a significant step toward achieving its sustainability goals and enhancing its global presence in the renewable energy sector.
As part of the project, First Gen and Sinar Mas will also focus on community engagement and environmental sustainability. The companies are committed to ensuring that the development of geothermal resources benefits local communities and adheres to strict environmental standards. This approach is essential for gaining public support and ensuring the long-term viability of geothermal projects.
The joint venture is expected to create numerous job opportunities in Indonesia, both during the construction phase and once the geothermal power plants are operational. The development of these projects will also contribute to the local economy and provide a reliable source of energy for communities in the surrounding areas.
In conclusion, the partnership between First Gen and Sinar Mas represents a significant investment in geothermal energy development in Indonesia. With over $2 billion allocated for the projects, this collaboration highlights the growing importance of renewable energy in the region and the commitment of both companies to sustainable energy solutions. As the world continues to grapple with climate change and the need for clean energy, initiatives like this will play a crucial role in shaping the future of energy production in Southeast Asia.
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