RP
rising as a global geothermal power
THE Philippines could rise to become the number
one geothermal power producer in the world after three geothermal
service contracts were firmed up, which can raise up to $900
million worth of investments in the next 25 years.
The Energy department said the implementation
of these geothermal projects will provide economic opportunities
for the country and “bring us closer to our goal of
becoming the largest producer of geothermal energy in the
world.”
The country currently ranks second to the
United States in terms of geothermal power output. After the
development of the first geothermal energy facility in the
country in 1971, development initiatives progressed significantly
over the years, bringing current generation from geothermal
facilities to a total 1,978 megawatts (MW).
Among the country’s indigenous energy
resources, geothermal is the largest supplier of electricity
with an estimated total untapped potential of about 2,600
MW.
The DOE said the three geothermal contracts
are expected to produce as much as 120 MW in additional capacity.
Within the first five years of exploration, the new geothermal
contract holders will be able to produce from 20 to 40 MW.
The firms are expected to start exploration by August this
year.
These firms are expected to invest up to $300
million each if they eventually decide to develop the geothermal
reserves and put up their own power facilities.
The DOE stressed the country will need only
70 MW more to overtake the US and become the world’s
largest producer of geothermal power.
The DOE has awarded the geothermal service
contracts to Guidance Management Corp. (GMC), Biliran Geothermal
Inc. (BGI) and Basic Energy Corp. (BEC) to explore and develop
the geothermal contract areas in Amacan, Biliran and Mabini,
respectively.
The Amacan geothermal prospect in Compostela
Valley has a target capacity of 20 to 40 MW. GMC, a synergy
between a Filipino mining group led by Joaquin Rodriguez and
Australian mining and energy players, will conduct geological
and geophysical surveys in the first two years before drilling
exploratory wells and will initially invest about $8.1 million.
GMC has previously entered into a joint venture
project with Aragorn Power and Energy Corp. for a geothermal
service contract in Kalinga province.
BGC, on the other hand, is expected to pour
in some $15 million to develop 20 to 40 MW of the target geothermal
capacity in Biliran province. It is estimated that Biliran
Island, considered a compound volcano, has at least 100 MW
of geothermal energy reserves.
BGI is a joint venture company between Filtech
Energy Drilling Corp. and Envent Holding Philippines, Inc.
Envent’s key shareholders are Reykjavik Energy Invest
and Geysir Green Energy, both globally leading development
companies in the renewable energy sector with specific focus
on geothermal energy. Both companies are based in Iceland
where an impressive 100 percent of the power capacity is derived
from renewable sources (23-percent geothermal and 77-percent
hydro).
BEC, which has been very active in upstream
oil exploration and biofuels development, expects to spend
about $3.5 million for the initial exploration activities
in its Mabini contract area in Batangas which has a 20 to
40 MW target capacity.
BEC is the former Basic Petroleum Corp. which
has a long experience and know-how in energy exploration and
development. It has participated in almost all the oil discoveries
in the country that have been put under production since 1978.
Among renewable energy sources, geothermal
is one of the most competitive in terms of generation cost.
(Inquirer.net/PN)
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