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EDC eyes P30-b capex for drilling, growth projects

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By Alena Mae S. Flores – December 3, 2024, 8:10 pm
from manilastandard.net

Geothermal power producer Energy Development Corp. is looking at a P30 billion capital expenditure budget for 2025, almost the same level as last year to finance its operations, a top executive said.

EDC senior vice president and chief finance officer Erwin Avante said the figures may still change and subject to approval of the board.

He said the capex will be used for drilling and ongoing growth projects, including binary geothermal projects and battery energy storage system projects.

Avante said they are also planning to borrow next year to fund its growth projects.

“We’re still ling up the financing but yes, we will definitely borrow,” Avante said.

EDC is undertaking a capital intensive drilling program involving 40 new wells until 2026 with capex of P60 billion to sustain and expand the operations of its geothermal projects.

“The main focus of EDC over the next three years is to make sure that we can continue to deliver the amount of renewable source of geothermal for our customers,” EDC vice chairman and chief executive Francis Giles Puno said earlier.

“Part of that is a need to drill close to 40 wells over the next three years… to make sure that we can continue to extract sustainable steam from the ground,” Puno said.

Most of EDC’s drilling operations will be in Leyte and Mt. Apo in Mindanao.

The company owns and operates the 232.5-megawatt Malitbog, 180-MW Mahanagdong, 125-MW Upper Mahiao, 123 MW Tongonan and 50.9-MW Optimization geothermal projects in Leyte.

EDC was also granted surface exploration and drilling rights also known as the preliminary survey assignments plus exploration (PSPE) for two greenfield geothermal projects in Indonesia with estimated investment cost of $456 million.

Koto Sani Tanjung Bingkung and Bora Pulu have an estimated capacity of 40 MW each concession area with a combined investment cost of about $456 million,

EDC expects to have a definite potential of the geothermal capacity of the concession areas after competing the 3G or geoscientific exploration survey.

The move aligns with EDC’s growth strategy as part of the 13,000-megawatts (MW) low-carbon energy portfolio of parent firm First Gen Corp. targeted by 2030, of which 9,000 MW will come from renewable energy.

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