Nickel Asia power unit to start first geothermal project

MANILA, Philippines — Emerging Power Inc. (EPI), the power unit of listed mining firm Nickel Asia Corp. (NAC), is venturing into geothermal energy production, with its maiden  project expected to start operating next quarter.

EPI is looking to pilot a two-megawatt geothermal project in Biliran through 45-percent owned subsidiary Biliran Geothermal Inc. (BGI) next quarter, NAC vice president for treasury, investor relations, and sales Andre Dy said.

For the pilot geothermal project, EPI has no plans to participate in the government’s Green Energy Auction Program (GEAP).

“Currently, we don’t want to participate in GEAP for now but it is a pilot program to fully test…at least in Biliran, that it can support two megawatts worth of power,” EPI chief operating officer Noel Gonzales said.

If proven it can generate energy consistently, BGI can expand its capacity to 10-20 MW from 2025 to 2027 and then to 50 MW out of the total 200-MW capacity.

“With regards to future expansions, we are looking into that and we’ll be looking at fully testing the other existing wells that are in Biliran,” Gonzales said.

“And then beyond that we’ll look at drilling some more wells in the future for exploration  and production, to expand to the full 50-MW capacity that we’re thinking that it can have,” he said.

Apart from Biliran, EPI is also working on a proof-of-concept two-MW pilot project in Mindoro under wholly owned unit Mindoro Geothermal Power Corp. (MGPC).

MGPC has set flow testing to start in the last quarter, and if successful, a modular plant will be installed.

MGPC’s geothermal power plant is intended to supply electricity to the Mindoro Island grid.

EPI is looking to spend $2 million per MW for the geothermal projects, Gonzales said.

Earlier, NAC invested P2.92 billion in EPI via a subscription deal, increasing its equity ownership to 95.8 percent.

Proceeds will be used for EPI’s operations, and operating expenses of affiliate BGI and subsidiary MGPC.

At present, EPI is operating a 100-MW solar farm in Mt. Sta. Rita in the Subic Bay Freeport Zone in Zambales through subsidiary Jobin-SQM Inc. (JSI).