AboitizPower unit inks geothermal services, supply contract with PGPC

MANILA, Philippines — AP Renewables Inc. (APRI) has signed a geothermal resources supply and services agreement (GRSSA) with Philippine Geothermal Production Co. Inc. (PGPC), the company said yesterday.

In a disclosure to the Philippine Stock Exchange, APRI said the GRSSA involves the supply of steam and drilling of new production wells in the Tiwi and MakBan Geothermal Complex.

The company said the agreement aims to ensure the long-term operations of the two renewable power plant facilities.

APRI, a wholly-owned subsidiary of AboitizPower, operates the 458-MW MakBan Geothermal Power Plants that straddle the provinces of Batangas and Laguna, as well as the 289-MW Tiwi Geothermal Power Plants in Albay.

PGPC, the pioneer in the commercial development of geothermal energy in Southeast Asia, is the steamfields operator and geothermal resource provider to the power plants.

Under the GRSSA, PGPC will drill 12 new production wells over a six-year period to increase steam availability for the power plant facilities by about 20 percent.

The agreement also ensures a more competitive fuel pricing in the long term.

“APRI is committed to deliver reliable and renewable power to our customers. This agreement secures the continued viability of the power plant facilities allowing us to deliver that commitment,“ APRI president and COO Alexander Coo said.

“For three years now, the Philippines has been ranked No. 1 in energy sustainability in the World Energy Council’s Energy Trilemma report because we continue to maximize the potential of renewable energy in the country, we hope to continue that momentum,” he added.

PGPC president Napoleon Saporsantos Jr. said renewable baseload energy is critical for the Philippines to power its economic growth.

“The sustainable operation of the geothermal steamfield is our way of supporting the country’s long-term energy needs through the supply of reliable, clean, and indigenous energy resources,” Saporsantos said.

First commissioned in 1979, the Tiwi-MakBan Geothermal Complex is one of the biggest geothermal facilities in the country and the region. PGPC has since operated the steamfield facilities.

AboitizPower took over the operations and management of the power plant facilities from the National Power Corp. in 2009.