The Department of Energy (DOE) has permanently canceled the service contract for the Montelago Geothermal Power Project in Oriental Mindoro, citing missed milestones by Mindoro Geothermal Power Corporation (MGPC), a subsidiary of Nickel Asia Corporation (NAC) through its unit Emerging Power Inc. (EPI).

In a disclosure to the Securities and Exchange Commission on October 15, 2025, NAC revealed that MGPC received notification on October 13 of the “final and irrevocable termination” of Geothermal Renewable Energy Service Contract No. 2010-02-013, dated October 8. The DOE attributed the decision to “MGPC’s failure to comply with the required milestones as stipulated in the approved 5-Year Work Program of the Project.”

As part of the termination, MGPC must pay a USD 120,000 financial obligation for training assistance within 30 days of receiving the letter. 

NAC stated that it will settle the amount as required and emphasized that the move “will not have a material impact on the Company’s financial situation,” noting full impairment provisions for its EPI investment were already made in its 2024 audited financial statements.

The Montelago project, located between Naujan Lake and Tablas Strait in Oriental Mindoro, was envisioned as a 20-40MW geothermal facility to bolster the Philippines’ renewable energy goals. Initially awarded in 2010, it aligned with national ambitions for geothermal expansion but faced local resistance and development delays. 

EPI, NAC’s renewable arm focused on solar, wind, and geothermal, had positioned the venture as part of efforts to enhance the country’s clean energy supply.

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