Masdar marked its entry into the geothermal market in February 2023 by investing in one of the world’s largest geothermal players, Pertamina Geothermal Energy.

The deal helped Masdar to expand its presence in Southeast Asia and gain access to the world's second largest geothermal market, which is in Indonesia.

Geothermal energy harnesses the heat generated within the Earth’s core to provide a constant energy source, unlike solar or wind, which are intermittent in nature. Geothermal energy plants also have high-capacity factors, meaning they can run at maximum power for longer periods. These attributes mean geothermal energy could potentially play a significant role in the clean energy transition, helping nations with a high concentration of geothermal activity to reduce carbon emissions.