First Holdings pursues $1-B Indonesian project

MANILA, Philippines - First Philippine Holdings Corp., (FPHC) of the Lopez family is pursuing a $1-billion geothermal project in Indonesia, marking its first foray in Southeast Asia.

“We are looking at several projects in ASEAN (Association of Southeast Asian Nations) particularly in the field of geothermal power,” FPHC chairman and CEO Federico R. Lopez said in a briefing following the company’s annual stockholders meeting.

“In the context of ASEAN, the likelihood where we will begin is the geothermal investment in Indonesia,” said FPHC chief financial officer and treasurer Francis Giles B. Puno.

The energy holding firm will venture into Indonesia through Energy Development Corp., the Philippines’ largest integrated geothermal power producer.

“EDC is having partnership discussions with an Indonesian concession holder for the possible joint development of one of their geothermal sites with a target development capacity of at least 200 megawatts (MW) and with an estimated project cost of $1 billion,” the company said.

Puno said the 4x55-MW geothermal power plant will cost $1 billion but EDC will pour in around $200 million in funding, with the rest of the requirements to be taken care of by the Indonesian partner and project financing.

While EDC will start with a minority, it will operate and maintain the power plant, Puno said, adding that the company has more than 40 years of experience in the field of geothermal power.

“We hope that by this year, we will make an announcement on the joint venture,” Puno said.

Aside from Indonesia, EDC is also expanding to Chile with a $12-million investment to drill geothermal wells. In May last year, EDC signed a joint venture agreement with a Canadian renewable energy firm Alterra Power Corp. for four geothermal projects in Chile and Peru.

The Lopez-led firm also partnered with Australian Hot Rock Ltd. to establish a joint venture company for the development of the Quellaapacheta geothermal project in Peru.

EDC, an integrated geothermal energy producer, has a portfolio of steam fields and power plants in the Philippines. It remains the largest producer of geothermal energy in the Philippines, accounting for 62 percent of the country’s total installed geothermal capacity.