Lopez-led EDC investing P25 billion to drill new geothermal wells
By Brix Lelis – October 16, 2024 | 12:00am
from The Philippine Star
According to a document submitted to the Department of Environment and Natural Resources (DENR), EDC will use the capital to drill new wells and add well pads to its Southern Negros geothermal project (SNGP).
Businessworld / File
MANILA, Philippines — Energy Development Corp. (EDC) of the Lopez Group is investing P25 billion to sustain steam flows at its massive geothermal project in Valencia, Negros Oriental.
According to a document submitted to the Department of Environment and Natural Resources (DENR), EDC will use the capital to drill new wells and add well pads to its Southern Negros geothermal project (SNGP).
The investment will also cover the construction of road networks, pipeline routes and other support structures, as well as the integration of emerging technologies.
Out of the allowed steam field capacity of 282.5 megawatts, SNGP is currently operating at about 241.8 MW through its existing 94 wells and 32 well pads.
Citing simulation studies, EDC said geothermal wells experience a pressure decline that may lead to decreased steam flows, which in turn could affect power generation.
As such, an average of two to five make-up and replacement wells should be drilled annually to address the forecasted and foreseen steam decline.
With this project, the company aims to sustain and maximize the power generation of the geothermal power plants by opening new areas and pads to support the drilling of wells.
To make this plan possible, EDC is seeking DENR approval for an amendment to its environmental compliance certificate covering the SNGP.
The proposal includes the modification of the boundary and shape of the project’s current development block and the expansion of the project area to 400 hectares from 151.5 hectares.
The proposed 4,027.6-hectare development block will help EDC sustain the operation of the Nasuji power plant, Palinpinon power project units and Nasulo power plant, as well as other possible future developments.
EDC said this project is expected to start next year, with completion targeted by 2057.
The project duration covers planning and pre-construction activities, road and pad construction, installation of steam field components and supporting facilities, testing and commissioning.
Earlier, EDC announced plans to invest roughly $456 million to develop two greenfield geothermal projects in Indonesia after obtaining exploration and drilling rights.
In the Philippines, meanwhile, the company intends to invest around P24 billion to develop and activate four geothermal projects within the year.
A subsidiary of First Gen Corp., EDC has a portfolio of 1,480 MW of installed capacity, accounting for 20 percent of the country’s total installed renewable energy capacity.
The company’s 11,185.40 MW provides around 61 percent of the country’s total installed geothermal capacity.
