First Gen Corporation said proceeds from its PHP 50-billion sale of a majority stake in its gas portfolio to Prime Infrastructure Capital Inc. (Prime Infra) will be directed toward strengthening its geothermal business, as the company pursues its 13,000-megawatt (MW) renewable energy target by 2030.

Carlos Lorenzo Vega, First Gen’s chief customer engagement officer, said geothermal will be prioritized because it can deliver consistent baseload power compared to intermittent sources such as wind and solar. “What we plan to do is make sure that we make the most out of the proceeds from the gas sale and put it in geothermal, our 24×7 renewable energy source,” Vega said in a report from Business Inquirer.

Geothermal currently accounts for 1,289.34 MW of First Gen’s 1,651-MW renewable portfolio, thus making it the backbone of the Lopez-led company’s clean energy expansion. While Vega did not disclose specific allocations, he emphasized that proceeds will significantly boost the segment, alongside continued investments in other renewable technologies and batteries.

First Gen earlier announced the PHP50-billion deal in May, which saw Prime Infra acquire a 60% stake in the company’s Batangas-based gas assets. These include the Sta. Rita, San Lorenzo, San Gabriel, and Avion power plants, as well as the planned Sta. Maria facility and LNG terminal. First Gen retained 40% ownership while Tokyo Gas kept its 20% share in the LNG terminal. The company previously said monetizing its gas assets would provide flexibility to scale up renewable projects.

Analysts noted the transaction could position First Gen as a formidable challenger to the USD3.3-billion alliance of Manila Electric Co., San Miguel Corp., and Aboitiz Power.

What other renewable technologies should First Gen focus on to complement its geothermal portfolio in reaching its 13,000-MW target?

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