Chevron Corporation is selling its geothermal energy assets, valued at $3bn, in a bid to arrest a decline associated with world oil prices.

Among interested parties in the assets found mainly in Indonesia and Philippines are French utility Engie and Japan’s Marubeni

Two Chevron subsidiaries operate geothermal projects in Salak and Darajat fields in west Java with a capacity to generate nearly 650 MW of electricity. The combined output produces enough renewable energy to supply about 3 million homes, according to Chevron’s website.
Chevron
Indonesia had estimated a geothermal potential of 27,700 MW, the highest in the world, but its current installed capacity was less than 5 per cent of the potential.

Deficits in grid infrastructure and land acquisition issues have hampered development of that potential so far.

Medco Power, which operates two geothermal projects in Indonesia, is keen to buy the assets and would consider looking for a partner due to the large value of the assets, according to Reuters.

Indonesia has unveiled land and regulatory reforms aimed at boosting production of geothermal energy, but investment in renewables has been slow in Southeast Asia’s largest economy.