ATLANTIC, Gulf and Pacific Co. of Manila, Inc. (AG&P Industrial) said it is partnering with Dutch firm Royal Eijkelkamp to develop geothermal projects in Indonesia.
The tieup, which covers geothermal and infrastructure projects across Indonesia, was outlined in a memorandum of understanding signed last week.
“The two companies will work together in business development, marketing and communication, tender participation, estimation, contracting, and execution,” AG&P Industrial said in a statement late Tuesday.
“AG&P Industrial will serve as the main contractor and technical lead, bringing its long-standing expertise in large-scale infrastructure delivery,” it added.
According to the company, the partnership will help Indonesia achieve its energy transition. Its energy mix is currently dominated by fossil fuels.
“The country aims to increase its share of renewables to 23% by 2025 and achieve net-zero emissions by 2060,” AG&P Industrial said.
“The two companies aim to unlock Indonesia’s geothermal potential and support the country’s path toward energy security and sustainability,” it added.
The deal follows an earlier agreement between AG&P Industrial, Royal Eijkelkamp, and other partners to explore, develop, and manage geothermal resources in the Philippines and the region.
“Our partnership with Royal Eijkelkamp solidifies our commitment to driving clean energy development across Southeast Asia,” AG&P Industrial President and Managing Director Alex Gamboa said.
“Indonesia holds tremendous geothermal potential, and we are eager to contribute to meeting the Indonesian government’s energy transition targets by bringing our innovative and scalable solutions prioritizing sustainability, efficiency, and long-term value,” he added.
Earlier this month, AG&P Industrial said that it has about $1 billion worth of contracts in the pipeline over the next two or three years, which include projects in the US, Europe, and Australia. — Justine Irish D. Tabile