Maibarara Geothermal eyes sale of carbon credits

MANILA, Philippines - Maibarara Geothermal Inc. (MGI) said it expects to sell carbon credits by 2015 after the United Nations approved the company’s Clean Development Mechanism (CDM) registration.

In a disclosure to the Philippine Stock Exchange, Maibarara parent Petro Energy Resources Corp. said the secretariat of the United Nations Framework Convention on Climate Change has confirmed that MGI has been registered effective Dec. 26, 2012 as a Clean Development Activity Mechanism under the Kyoto Protocol.

MGI is a joint-venture company owned 65 percent by PetroGreen Energy Corp., a 100-percent subsidiary of PetroEnergy Resources; Trans-Asia Oil & Energy Development Corp. (25 percent); and PNOC-Renewables Corp. (10 percent).

MGI plans to start commercial operations of its 20-megawatt geothermal power facility in Sto. Tomas, Batangas by late 2013.

MGI president Francisco Delfin said the sale of carbon credits would provide the company additional revenues.

“We are pleased to obtain UN approval for the CDM registration of our Maibarara geothermal power project as carbon credits will supplement MGI’s revenue from electricity sales,” Delfin said.

Department of Energy-Renewable Energy Management (REMB) bureau director Mario Marasigan said the operation of the project’s first 20-megawatt unit is expected to reduce greenhouse gas emissions between 71,000 and 76,000 tons of carbon dioxide equivalent per year.

This is seen to contribute to the global efforts of mitigating man-induced global warming and climate change.

Delfin said that due to CDM facility protocol, MGI expects to verify and sell its first tranche of carbon credits by early 2015, after a full-year of power plant operation.

“MGI will sell the Maibarara carbon credits to Endesa Carbono S.L. by virtue of a certified emission purchase agreement that the two firms signed on Jan. 31, 2011,” the company said in its disclosure.

Delfin said MGI is nearing the completion of construction works for the 20-MW geothermal power facility, the first geothermal power project under the current Aquino administration and the first renewable energy project under the 2008 Renewable Energy Law declared commercial by the DOE.