EDC expects hike in steam supply

MANILA, Philippines - Energy Development Corp. (EDC), a leading renewable energy development company run by the Lopezes, expects increase steam supply coming from its Northern Negros Geothermal Power Plant (NNGPP) in the remaining months of the year.

“We hope to do something about NNGPP this year,” EDC president and CEO Richard Tantoco said.

According to Tantoco, they are exhausting all efforts to maximize the operations of the geothermal power facility.

“We are still way short of our targets with a steam supply of only 7MW for a 49 WM plant,” he said.

He said they have hired a third party to help the company reach a decision on what to do with the plant. “We have a resource development plan and commissioned a third party to review our plans prior to taking a final decision on what to do next with NNGPP,” he said.

Tantoco said there are currently exploring options for the optimization of the plant’s operations.

“We’re also reviewing options to optimize the resource and the use of the power station,” he said.

In May 2009, EDC was also able to slowly synchronized NNGPP to the grid.

It would be noted that EDC was cautious in operating NNGPP until it is assured of steady supply of steam from Northern Negros Geothermal Production Field (NNGPF).

In 2008, EDC reported a decline in steam production in the field due to the clogging of wells by calcite minerals found in the current geothermal field. The clogging prevents the wells from releasing the steam from its very source underneath the earth. Calcification is a technical problem that is not attributable to or within the reasonable control of EDC.

The EDC has invested some P7 billion to P8 billion for the development of the NNGPP.

EDC had been encountering strong opposition in the development of Mt. Kanlaon as it is believed to be part of a National Park.

Due to the difficulty in entering the Mt. Kanlaon Park, EDC was able to produce only 15 to 18 MW from expected 49 MW capacity of the NNGPP during that time.

In February 2007, the $68.4 million NNGPF is the fifth geothermal field developed and operated by EDC and the first power plant constructed and fully-owned by EDC.

It is also the second for EDC in Negros island the first being the Palinpinon or the Southern Negros Geothermal Power Plant (SNGGP) in Valencia, Negros Oriental.

NNGPF is also the first renewable power project in the country to operate as a merchant plant under the new electricity environment.

The EDC has explored 15 wells for the NNGP. Of these, 11 wells have been producing steam to supply the 49 MW requirement of the geothermal plant.

The power plant’s output will be distributed via 25 kilometers of transmission line to the National Transmission Corp’s Mansilingan substation.