Envent's Biliran geothermal project makes good progress

Envent Holdings Philippines Inc., backed by big geothermal developers from Iceland, said its Biliran geothermal exploration is making good progress.

The company said the surface exploration program by a group of sub-contractors, including Phoenix Geophysics of Canada and local geothermal consultancy Fedco, is expected to be completed by March 2009.

The exploration program is essentially an extension of a surface and exploration-drilling program geothermal power company PNOC-Energy Development Corp. (PNOC-EDC) performed in 1982.

If the exploration is successful, the substantial data available will form a solid basis for further development and construction of a power plant.

Envent is currently working on several geothermal projects in the Philippines and is committed to contributing to the Philippine government’s target of an additional 1,200 megawatts (MW) of renewable energy by 2013.

Envent’s key shareholders are Reykjavik Energy Invest and Geysir Green Energy, both global leaders in the renewable energy sector with specific focus on geothermal energy. Both companies are based in Iceland where an impressive 100 percent of their power is derived from renewable sources (23 percent geothermal and 77-percent hydro).

The Biliran geothermal development project is located on the island of Biliran in Eastern Visayas.

Biliran has an estimated potential of generating at least 100-MW of geothermal energy. Envent’s associate company Biliran Geothermal Inc. will execute the upstream part of the project.

“Because of the drilling that PNOC-EDC did in 1982, the data that we will have available at the end of the current exploration program will be much more substantial than is typical in projects of this sort. This will reduce our development risk as well as make the project more attractive to co-developers,” Gudmundur F. Sigurjonsson, Envent president and chief executive officer, said.

Geysir Green Energy is a leading developer in the geothermal industry, investing in development projects as well as geothermal operations. It has invested around $650 million in geothermal businesses and projects around the world.

Reykjavik Energy, on the other hand, is its international business development and investment arm and is a global developer of geothermal power plants and geothermal-based district heating systems.

Biliran Geothermal Inc., meanwhile, was specifically established to undertake upstream development activities on the island of Biliran.

Upstream geothermal activities include the exploration of geothermal areas, well field construction and the extraction of steam from the area. The company is owned by Filtech Energy Drilling Corp. (Fedco) and Envent.