The Philippine Geothermal Production Company, Inc. (PGPC), the energy arm of Sy family-led SM Investments Corp. (SMIC), is eyeing to increase its geothermal capacity up to 400 megawatts (MW) through its six expansion areas, including Mt. Malinao in Albay and Mt. Labo, which spans the provinces of Camarines Norte, Camarines Sur, and Quezon. 

During a press conference on Tuesday, March 24, in Laguna, PGPC President Napoleon Saporsantos said they have completed three wells in Malinao and are currently drilling one well in Tiwi. 

By April, the PGPC plans to drill three exploration wells in Mt. Labo.  

“Right now, we’re building roads, and we’re building well pads in Mt. Labo,” Saporsantos said. 

He continued, “With this contribution, we hope to go back to our position as the second largest geothermal producing country in the world.”

Other expansion areas are in Kalinga and Southwest Kalinga, Daklan in Benguet, and Baua-Sikaw in Cagayan. 

The PGPC will allot around PHP 3 billion for initial exploration in 2026, with projects typically taking five to seven years to develop. 

The PGPC operates the geothermal stream fields in Tiwi, Albay and Mak-Ban, which straddles the provinces of Laguna and Batangas. 

The steam fields supply geothermal power plants operated by AboitizPower’s AP Renewables Inc. (APRI) in these locations, which convert the steam into electricity.  

94 MW output for Aboitiz 2018 deal 

Meanwhile, Saporsantos shared that they have completed the drilling of 12 new production wells under a geothermal resources supply and services agreement (GRSSA) with AboitizPower, nearly doubling its initial power generation target. 

He confirmed that they have produced 94 MW within the Mak-Ban geothermal steam field, exceeding the original 50-MW target under the agreement.

“That has been completed, and PGPC has fully complied with the GRSSA terms. We delivered ‘yung 12 wells and 50 MW, we actually got 94 MW within Mak-Ban,” Saporsantos said.

The GRSSA was signed by the PGPC and APRI in August 2018, which tasked the former to drill 12 new production wells in the Tiwi and Mak-Ban geothermal complex over a six-year period to increase steam availability for the power plant facilities by about 20 percent. 

Saporsantos expressed interest in continuing the partnership with APRI in the future. 

“That’s how we foresee ‘yung relationship namin with APRI, to continue agreements in terms of future development,” he said.

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates.