PNOC secures geothermal contract
THE renewable arm of Philippine National Oil Company (PNOC) has secured a geothermal exploration contract to develop a 40-megawatt (MW) project for Luzon.
According to Energy Assistant Secretary Mario Marasigan the project would have an estimated US$120 million investment which would cover 20 MW for the Mainit-Sadanga and 20 MW Buguias-Tinoc geothermal projects.
"The geothermal contracts have already been awarded to PNOC Renewables and its private partner. Magma Resources is taking the lead. These are frontier areas," Marasigan told reporters.
Magma Resources is a local group entered a joint venture with Philippine National Oil Co.'s renewable energy arm for the development of the project.
PNOC Renewables data indicated that the Mainit-Sadanga project will cost around US$60 million and is estimated to generate about 18 gigawatt-hours (gwh) of electricity per year.
"The proposed project will be connected to the Luzon grid. Power generated will be sold to the local electric cooperatives and industries. This shall benefit households, institutions, commercial and industrial consumers in the Mountain Province and other areas in the island of Luzon," PNOC Renewables said.
PNOC Renewable's Buguias-Tinoc geothermal project is also estimated to cost US$ 60 million and will supply the same level of electricity as the Mainit-Sadanga geothermal project.
Earlier, PNOC Renewables was awarded a geothermal exploration contract to develop the Mt. Isarog volanic chain for power generation.
PNOC is the country’s top producer of geothermal power, however, it sold its geothermal subsidiary, the then PNOC Energy Development Corporation, to a Lopez-led consortium in 2007 for P58.5 billion.
The Mt. Isarog geothermal project, could generate 18 gwh of electricity per year, will be connected to the Luzon grid and power generated will be sold to the local electric cooperatives and industries to benefit households and industrial consumers in the Camarines province and other areas in Luzon.
Exploration activities for Mt. Isarog will begin in September this year.
"I want PNOC to actively participate again in the geothermal business, especially because the Philippines lies in the ‘ring of fire,’ a sweet spot in geothermal energy. It is no wonder that we are number two in the world today. Geothermal energy presently accounts for about 23 percent of the total energy mix in the country. We should continue our proven expertise in this sector of renewable energy," PNOC president Antonio Cailao said earlier.
"PNOC helped make the country the second largest geothermal producer in the world. We will solidify this effort until we become number one," Cailao added. (MSN/Sunnex)