EDC unit forms joint venture deal with Indonesian conglomerate Sinar Mas

ENERGY Development Corp.’s (EDC) unit PT FirstGen Geothermal Indonesia has formed a joint venture with Indonesian conglomerate Sinar Mas. In a filing with the Philippine Dealing and Exchange Corp. (PDEx), EDC said PT FirstGen had signed a shareholders agreement with PT DSSR Daya Mas Sakti, a subsidiary of PT Dian Swastatika Sentosa Tbk of Sinar Mas, and PT Daya Mas Bumi Sentosa, one of two holding firms established by both companies. This agreement will lay out terms for the development of a geothermal energy portfolio in Indonesia. EDC previously said they would focus on the management of geothermal resources with combined capacity of 440 megawatts, across six strategic fields in West Java, Flores, Jambi, West Sumatra and Central Sulawesi. Indonesian investment banking firm BCA Sekuritas said both parties had formed holding companies, PT Daya Mas Bumi Sentosa and PT Daya Mas Eka Sakti, to oversee both non-operators and operators of the project through capital contributions in the form of assets and cash funds. This collaboration was said to be aligned with the Indonesian government’s goal of accelerating the country’s energy transition, expanding the share of renewable energy and achieving the nation’s net zero emission target by 2060.