The Energy Development Corporation (EDC) of the Lopez Group is allocating P25 billion to maintain steam production at its expansive geothermal facility in Valencia, Negros Oriental.
Based on a document submitted to the Department of Environment and Natural Resources (DENR), EDC plans to utilize the investment for drilling new wells and adding well pads to its Southern Negros Geothermal Project (SNGP).
According to a report by the Philippine Star, The funding will also support the construction of roads, pipeline routes, and other necessary infrastructure, along with integrating new technologies.
SNGP currently operates at around 241.8 megawatts from its allowed steam field capacity of 282.5 MW, using 94 wells and 32 well pads.
EDC, citing simulation studies, noted that geothermal wells typically experience a pressure drop, which may lead to a reduction in steam output and ultimately affect electricity generation.
To mitigate this, EDC plans to drill two to five new wells each year to offset the anticipated decrease in steam flow.
Through this project, EDC aims to sustain and potentially increase the power output of its geothermal plants by expanding drilling areas and adding new well pads.
EDC is seeking DENR approval to amend its environmental compliance certificate for SNGP, proposing adjustments to the boundary and shape of the current development block.
The expansion plan will increase the project area to 400 hectares, up from the current 151.5 hectares, within a larger 4,027.6-hectare proposed development block.
This move will ensure the continued operation of the Nasuji power plant, Palinpinon power units, and Nasulo power plant, with potential for future developments.
EDC aims to begin the project next year, with completion expected by 2057.
The timeline includes planning, pre-construction activities, road and pad construction, steam field component installation, and facility commissioning.
In a separate development, EDC revealed plans to invest $456 million to pursue two greenfield geothermal projects in Indonesia following the acquisition of exploration and drilling rights.
Meanwhile, in the Philippines, EDC is set to invest P24 billion this year to launch four geothermal projects.
EDC, a subsidiary of First Gen Corporation, manages 1,480 MW of installed capacity, accounting for 20 percent of the country’s renewable energy capacity.
The company’s geothermal portfolio of 11,185.40 MW represents about 61 percent of the Philippines’ total installed geothermal capacity.
