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INTERNATIONAL WORKSHOP ON MINERAL SCALING IN GEOTHERMAL ENVIRONMENT
The Philippines is set to host the “International Workshop on Mineral Scaling in Geothermal Environment” at the Intercontinental Hotel Manila on 25-27 May 2011. The 2-day workshop will focus on silica, calcite, anhydrite, clays, sulphides and metal scaling and related problems in geothermal wells and pipelines; sessions will be spearheaded and chaired by international experts on the said topics, and boasts of an impressive list of attendees from the global geothermal community. The workshop will be capped by a visit to nearby Makiling-Banahaw (Makban) geothermal field.
The workshop is jointly sponsored by the International Geothermal Association (IGA) thru the Western Pacific Regional Branch (WPRB) and the National Geothermal Association of the Philippines (NGAP), Energy Development Corporation (EDC) and Chevron Geothermal Philippines Holdings, Inc. (CGPHI). For more information on the workshop, please contact Mr. Almario Baltazar at baltazar.ad@energy.com.ph.
WPRB AGM Notice 2011_lfb rev 3.10.2011
6th wprb 2011 agenda_rev with hdi lfb 3.10.2011
EDC bags 2 Anvils for outstanding PR tools
Geothermal leader Energy Development Corporation (EDC) bagged the Anvil Award of Excellence for Master of Green Power Communication Program and the Anvil Award of Merit for Sustain via Renew, EDC’s integrated annual and sustainability report. The Master of Green Power Communication Program was cited for successfully communicating its creative portfolio of services, sustainability report, and actively participating in the 2010 World Geothermal Congress. The program resulted in increased investor confidence and shareholder value, acquiring new geothermal contracts, and maintaining stakeholders’ support. Sustain via Renew won for successfully integrating its business performance milestones with its sustainability efforts, giving readers of the report a more holistic view of EDC’s initiatives. EDC Senior Vice President for Operations Marcelino Tongco (6th from left) and Assistant Vice President Martin Lacambra (5th from left) received the Anvils. Also in photo from left to right are: Lourdes Zaide, Anne Christine Rojo, Monette Evangelista, Fernando Diaz de Rivera, Martin Lacambra, Marcelino Tongco, Frances Ariola, Ivy Henson and Atty. Jasmine Almogino.
EDC unit seals 7 new power supply deals with Visayas electric cooperatives
Green Core Geothermal, Inc. (GCGI), a subsidiary of geothermal leader Energy Development Corporation (EDC), sealed seven new long-term power supply contracts with electric cooperatives in Leyte and Negros islands to supply 58 MW of power.
GCGI signed a 10-year power supply contract with the Negros Oriental II Electric Cooperative, Inc. (NORECO II) for 25 MW. The geothermal firm also inked a separate power supply contract with six members of the Association of Visayas Electric Cooperatives (AVEC), namely Negros Oriental I Electric Cooperative, Inc. (NORECO I), Negros Occidental Electric Cooperative (NOCECO) and VMC Rural Electric Service Cooperative, Inc. (VRESCO) in Negros island; and the Don Orestes Romualdez Electric Cooperative, Inc. (DORELCO), Leyte II Electric Cooperative, Inc. (LEYECO II) and Leyte V Electric Cooperative, Inc. (LEYECO V) in Leyte. GCGI allocated a total of 33 MW for the six electric cooperatives.
The contracts of the Visayas electric cooperatives which expired in December last year were previously with the National Power Corporation (NPC) before the privatization of the Tongonan 1 and Palinpinon geothermal plants in Leyte and Negros Oriental, respectively. GCGI which acquired the power plants in 2009, began negotiating with the electric cooperatives with expiring contracts as early as January 2010.
“From the start, we have always prioritized the electric cooperatives in our host areas as we want them to be the first to enjoy the benefits of having clean, reliable and affordable power. We’re happy that our cooperatives have partnered with us. We offer the most competitive price in the market and we’re investing heavily to improve the reliability of our plants so that power interruptions will be significantly reduced and eventually eliminated,” EDC President and COO Richard Tantoco said.
GCGI earlier signed long-term power supply contracts with the Iloilo I Electric Cooperative, Inc. (ILECO I), Iloilo II Electric Cooperative, Inc. (ILECO II), Aklan Electric Cooperative, Inc. (AKELCO), Capiz Electric Cooperative, Inc. (CAPELCO), and Dumaguete Coconut Mills, Inc. (DUCOMI).
EDC subsidiary pays PHP1.28 billion for Bacman power plants
Bacman Geothermal, Inc. (BGI), a wholly owned subsidiary of geothermal leader Energy Development Corporation (EDC), has achieved closing on the 150-MW Bacman geothermal power plant acquisition after remitting to PSALM on September 3 the sum of PhP1,279,725,000 representing full payment of the purchase price for the power facilities. The turnover followed BGI’s submission of the highest offer price for the Bacman plants in a competitive bid conducted by PSALM last May 5 and its successful completion of the conditions precedent required in the Asset Purchase Agreement (APA).
“Our main focus now is to rehabilitate these plants and restore capacity and reliability factors to 100 percent to add clean, reliable and much needed power to the Luzon grid,” EDC President and COO Richard Tantoco said.
Located in the towns of Bacon, Sorsogon and Manito, Albay in the Bicol region, the BacMan plant package consists of two steam plant complexes. The BacMan I geothermal facility comprises two 55-MW turbines, which were both commissioned in 1993. BacMan II, on the other hand, consists of two 20-MW units namely, the Cawayan located in Barangay Basud and the Botong in Osiao, Sorsogon City. The Cawayan unit was commissioned in 1994 and the Botong unit in 1998. EDC supplies the steam fuelling these plants.
“The acquisition of NPC’s geothermal power plants is one of our major platforms for future growth. With the turnover of the Bacman power plant, we are now fully integrated across the geothermal value chain. This vertical integration will result in a seamless and more efficient operations,” Tantoco added.
The Bacman plants boost EDC’s current portfolio of geothermal power generation assets to 1,199 MW. EDC also acquired the 112.5-MW Tongonan and 192.5-MW Palinpinon geothermal plants auctioned by PSALM last year.
EDC’s other geothermal power generating assets are the Unified Leyte plants consisting of the 125-MW Upper Mahiao, 232.5-MW Malitbog, 180-MW Mahanagdong and 51-MW Optimization plants, the 106 MW Mindanao 1 and 2 plants in Kidapawan, Cotabato, and the 49-MW Northern Negros geothermal plant in Negros Occidental.
EDC H1 net income soars 113.7% to PhP5.74 billion
Combined power plant operations continue to boost financial performance of geothermal leader Energy Development Corporation (EDC) as it posted a 113.7 percent increase in its income for the first six months of the year. The company earned PhP5.74 billion for the first half of 2010, more than double the PhP2.69 billion registered for the same period in 2009.
Of its different subsidiaries, First Gen Hydro, operator of the 122.5-MW Pantabangan-Masiway hydroelectric plants contributed PhP 1.06 billion to the total net income for the first half. Income from the 106-MW Mindanao geothermal plants improved to PhP436.4 million from PhP343.2 million with the elimination of BOT fees after the turnover to EDC in June last year. However, as a stand-alone entity, Green Core Geothermal, Inc. (GCGI) which operates the 305-MW Tongonan 1 and Palinpinon power plants reported a net loss of PhP0.26 billion.
“The successful acquisition of NPC owned geothermal power plants is an integral component of our forward integration growth strategy. Despite investor concerns on the immediate impact of loss steam revenues for the Bacman acquisition, EDC’s purchase of the power plant remains to be value-enhancing for the company,” EDC President and COO Richard Tantoco explained.
EDC submitted the highest complying bid for PSALM’s auction of the 150-MW Bacman plants last April. It has programmed the rehabilitation of the plants to bring them back to full capacity within 18 to 24 months.
“Complementary to this is our initiative to strengthen our balance sheet by redenominating our loans and smoothening out lumpy maturities. We are confident that we can sustain this momentum for the balance of the year with the continued seamless integration of the newly acquired plants with their fuel source – steamfields that we have been operating for the past three decades,” Tantoco said.
The company’s core net income also increased by 89.2 percent to PhP4.85 billion from PhP2.57 billion.