Direct Emissions (Scope 1). EDC’s direct greenhouse gas (GHG) emissions come primarily from the venting of non-condensable gases (NCGs) from geothermal power plants and steam fields. This accounts for 99% of all EDC’s GHG emissions, including indirect emissions (Scope 2 and 3). 

In the process of geothermal production, steam from deep within the earth is used to drive the steam turbine, which generates electricity. Afterward, the steam is condensed and reinjected into the geothermal reservoir. Some gases in the steam, however, are non-condensable and are dispersed in the atmosphere by cooling tower fans. 

These inert, non-condensable gases are composed of about 98-99% CO2 and also contain traces of methane (CH4), both of which are classified as GHG. These non-condensable gases are also released in the steam field during the testing of newly drilled wells and routine venting of existing wells.

In 2020, EDC’s facilities emitted a total of 964,436 tonnes of equivalent CO2.  This is a 13% increase over last year’s emissions. This increase in direct CO2 emissions is primarily due to the amount of CO2 in the steam extracted across all geothermal fields. 

Direct GHG Emissions (Scope 1) 

Indirect Emissions from Electricity Consumption (Scope 2). EDC’s electricity consumption dropped significantly due to the implementation of work-from-home (WFH) and shelter-in-place (SIP) arrangements in response to the COVID-19 pandemic. 

Of our project sites, only the Burgos Wind Project did not post such a reduction, with its consumption remaining more less within its average range. The pandemic did not have any notable effect on the Burgos Wind Project since bulk of its consumption is for the operation of wind turbines. During low wind conditions, the wind farm purchases electricity from the grid to power the various sensors in each of its wind turbines.  

Indirect GHG Emissions from Purchased Electricity (Scope 2)

Other Indirect Emissions (Scope 3). EDC’s Scope 3 emissions represent the fuel consumption of rented vehicles and industrial equipment of contractors, such as generator sets and pumps. Activity data included in our Scope 3 emissions also include employee business travel. Due to the mobility restrictions imposed by the pandemic, business travel was reduced, resulting in EDC’s lowest Scope 3 emissions to date.

Other Indirect GHG Emissions (Scope 3)

Emissions intensity, such as carbon intensity, is the emission rate of a given pollutant relative to a business metric. In the case of EDC, the business metric is megawatt-hours (MWh). Overall, EDC retained its carbon intensity of 0.1 tonnes of equivalent CO2 per MWh. Our energy facilities have significantly lower carbon emissions compared to the national grids, which are composed mostly of fossil fuel-based power plants.  The carbon intensity of EDC facilities is seven times lower than the grid and eight to nine times lower than an average coal plant. This provides our customers a green option to reduce their own carbon footprint. Bottomline, our low carbon operation contributes in decarbonizing the nation.

EDC’s Carbon Intensity Vs. Other Technologies and the National Grid

Source: World Bank, 2014; Department of Energy (DOE) Emission Factor, 2015-2017

Waste Management

As part of our commitment to protecting the environment, we strive to prevent pollution by properly managing waste throughout our operations. With respect to waste management, EDC follows the Waste Management Hierarchy by reducing, as much as possible, the disposal of waste in landfills. We do this by employing waste minimization methodologies in our operations and support processes. 

We also aim to reduce our generation of hazardous wastes through process improvements and changes in our use of raw materials. For instance, we made the switch to chromium-free drilling chemicals. Our laboratories have also improved their operations by substituting regulated chemicals with non-regulated chemicals and by reducing the volume of samples, which translates to less waste.

In the process of our operations, we also generate hazardous wastes such as cooling tower sludge, used oil, used batteries, lab wastes, electronic wastes, medical wastes, and other domestic waste such as kitchen oil. However, 80% of our hazardous wastes were diverted out of landfills in 2020.  Recyclable hazardous waste (i.e., used oil and used lead-acid batteries) are disposed of through the Bantay Kalikasan Project of the ABS-CBN Lingkod Kapamilya Foundation, Inc. (ALKFI). These wastes are eventually recovered or recycled for use again, thus, minimizing new resources from being produced.

Proceeds from the recycling of used oil and used lead-acid batteries are donated to ALKFI. However, due to restricted travel due to the pandemic, we deferred our hazardous waste disposal for the year. 

Hazardous Waste Generated, by Type

Other Indirect Emissions (Scope 3). EDC’s Scope 3 emissions represent the fuel consumption of rented vehicles and industrial equipment of contractors, such as generator sets and pumps. Activity data included in our Scope 3 emissions also include employee business travel. Due to the mobility restrictions imposed by the pandemic, business travel was reduced, resulting in EDC’s lowest Scope 3 emissions to date.

Other Indirect GHG Emissions (Scope 3)

EDC utilizes water for both domestic and operational purposes. Our geothermal assets use water in various phases of our operations: for drilling, in the cooling towers, and for washing equipment during maintenance activities. We have two cascading power plants in Pantabangan that use water to generate power. EDC’s solar and wind plants use minimal amounts of water to wash equipment. 

As water is a valuable and vulnerable resource, it is important to us that we manage both our water use and our wastewater discharge. 

EDC complies with all regulations and standards concerning water use, withdrawals, and discharge in our areas of operation. On a larger scale, we participate in water management at the watershed level, through our geographic information system–assisted Watershed Management Plan. EDC has a Water Budget Study, which simulates the water balance contribution at the catchment scale at each geothermal area. Using this study and assessing our annual discharge has allowed us to do more in-depth hydrological or groundwater studies. This will help us predict aquifer response to future climatic or land use changes and can support better decision-making and the formulation of more more responsive and strategic watershed management approaches. 

With respect to discharge, EDC implements the Zero-Discharge System (ZDS) in all of our operating geothermal project sites. All the geothermal waters extracted three kilometers below the ground–including geothermal brine and condensates–are injected back into the geothermal reservoir after they are used to generate power. This system ensures that the geothermal reservoir is recharged and that the water extracted is not  discharged to the natural surface environment.

In terms of a more broad, ecosystem-based management, EDC collaborates actively with external stakeholders to protect, rehabilitate, and restore the forest and promote development in upland communities. We are constantly improving these programs and feedback mechanisms to enable more efficient water monitoring and watershed management.

EDC’s operations, at different phases of project development, can affect the forest environment and the biodiversity contained therein. In the development phase of geothermal operations, activities such as vegetation clearing, can have a negative impact on biodiversity. 

Protection of biodiversity is meant to maintain the health of the forests that support the geothermal reservoir. This is part of our overall commitment to environmental stewardship.

Through EDC’s initiatives, we aim to enhance biodiversity within our project and concession areas. We implement measures to mitigate the possible negative  impact of our activities on biodiversity, and evaluate our efforts to ensure that we are successful in this regard. We also seek to maintain and improve on EDC’s reputation as a good steward of the environment. 

In our reforestation efforts, EDC prioritizes the use of indigenous, premium, species; we support a “no hunting policy” within our reservation areas; and have established sanctuaries to protect the wildlife in our areas. We encourage integrated pest management in EDC plant nurseries and plantations.

EDC operates within declared geothermal reservations. All our operations are covered by required forestry permits, in compliance with relevant forestry and wildlife laws. EDC has an Integrated Management Plan (IMP) and Comprehensive Development and Management Plan (CDMP) for forested areas. EDC is deputized to manage the watershed and we strictly follow and enforce forestry laws within the geothermal reservation, following Executive Order 223. 

To monitor biodiversity parameters, we have permanent forest plots. We use this data to refine our biodiversity management plans. When necessary we undertake environmental impact assessments. We work in partnership with the academe (University of the Philippines – Institute of Biology) to ensure greater accuracy and transparency in our monitoring.

Given that we are in the power generation sector, emissions are a critical and material topic for EDC. We utilize a science-based strategy and the best available technology to support our efforts to manage this aspect of our operations.

At the baseline level, we ensure compliance with applicable pollution control laws, regulations and standards—such as the Philippine Clean Air Act of 1999, the Ecological Waste Management Act of 2000, the Philippine Clean Water Act of 2004, and the recently institutionalized Executive Order 174 (“Philippine Greenhouse Gas Inventory Management and Reporting System”). 

With respect to effluents, EDC implements the Zero Discharge System (ZDS). We also practice continuous air quality monitoring and third-party multi-sector monitoring. 

EDC has protocols for proper waste management, for both solid and hazardous waste. We engage only DENR-accredited third party contractors to transport, treat and dispose of our waste materials.