Aboitiz seeks endorsement for another power project

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Wednesday, July 2, 2014


THE AboitizPower Corp. on Tuesday presented before the 17th Davao City Council its exploration project for geothermal resources, which will be undertaken by Mt. Apo Geothermal Inc., a subsidiary of the power company.

Manuel Orig, first vice president for Mindanao Affairs, said one of the contract areas for the exploration is Davao City.

"We need the endorsement and support of the Davao City Council for us to be able to proceed in the exploration and, if successful, to construct the geothermal power plant," Orig said.

He said they will wait for five years before they can fully operate with the geothermal power plant.

The exploration will take them two years, then another two years for the construction of the power plant.

He said they will be in full swing as long as they get all the approval of the local government units of Sta. Cruz, Davao City, and Digos City.

Councilor Louie John Bonguyan, committee chair for energy, said the Department of Energy (DOE) granted application of AboitizPower to explore potential geothermal resources in Mt. Talomo, Kapatagan areas last November 2013.

He said the area consists of 8,910 hectares and is located in the municipality of Sta. Cruz, Davao City, Digos City and the province of Davao del Sur.

He said the exploration will be undertaken by Mt. Apo Geothermal Inc. as a subsidiary of Aboitiz Power Corp.

“In the event that the exploration is successful, the potential benefits that the people of Davao can derive from operations of geothermal power plant,” Bonguyan said during the privilege hour on Tuesday.

Orig said the public demands for the geothermal power plant “because it is safe to the environment and to the health of the people.”

“Plus it will result to electricity rates that are comparatively lower than the other rates of other power sources,” he said in an interview.

“During the exploration stage, we will investigate kung gaano kalaki ang available power because the size of the power plant will depend on the spring that is available. That is going to be determined until after the exploration is completed,” he said.

In a previous report, Artemio Magnayon, Vice President for Business Development of Aboitiz Power, said they have already begun with their exploration of geothermal sites in two areas around Mt. Apo.

The report states that the company has started with the "first phase" of the work program after it was awarded Geothermal Renewable Energy Service Contracts (GRESC) by the Department of Energy last year.

It said that the project is "aligned with Aboitiz Power's right-mix strategy in its power generation business which pushes for maximization of renewable energy potential as long as it is available and affordable, while utilizing fossil-based power generation to ensure reliability."

Aboitiz Power currently produces some 1,191 MW of renewable energy, making them one of the biggest renewable energy producers in the country. (ANC)

Published in the Sun.Star Davao newspaper on July 02, 2014.

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