LISTED PetroEnergy Resources Corp. (PERC) said on Tuesday that the Department of Energy (DOE) has recently confirmed the commerciality of the 20-megawatt Maibarara geothermal integrated steamfield and power plant project in Sto. Tomas, Batangas.
In a disclosure to the Philippine Stock Exchange, PERC said Energy Secretary Jose Rene Almendras signed on November 11 the confirmation, which serves as the basis for the project to enter the development and commercial stage of the service contract.
Maibarara Geothermal Inc., the joint venture of PERC, Trans-Asia Oil and Energy Development Corp. and Philippine National Oil Co.-Renewables Corp. (PNOC-RC), is developing the 20-MW Maibarara geothermal integrated steamfield and power plant project.
Maibarara targets to complete the 20-MW power plant and put it online to provide additional power supply to the Luzon grid by 2013.
Unlike other renewable-energy (RE) projects, geothermal energy development is not covered by the proposed feed-in-tariff mechanism.
Energy Undersecretary Jose Layug Jr. said the DOE found the project for commercial development after a thorough review of the work accomplishments, project funding and related construction, power sales and transmission agreements reached by Maibarara.
Layug said the Maibarara geothermal power project is the first renewable-energy project entirely initiated and implemented under the Renewable Energy Act of 2008 framework to achieve commerciality.
“It’s a milestone that demonstrates not only Maibarara’s operational achievements but also the growth potential of the country’s renewable- energy industry,” he said.
Maibarara Chairman Cesar Buenaventura said the company is proud to hold the distinction of having the first upstream energy project under the RE Act of 2008 to be confirmed commercial by the DOE.
He said such distinction testifies to the soundness of the company’s investment decision, the inspired work of the team and to the productive relationship forged with the DOE, the Sto. Tomas local government units and the joint-venture partners.
“With the confirmation of commerciality, we shall strive to make Maibarara the first new geothermal facility in the country under the Aquino administration,” Buenaventura said.
The Maibarara service contract was originally awarded to PetroEnergy Resources Corp. in February 2010
following an open and competitive selection process conducted by the DOE in October 2009.
PERC then formed and took 65-percent ownership of Maibarara, through PetroGreen Energy Corp., its renewable-energy arm, with local partners Trans-Asia and PNOC-RC holding 25-percent and 10-percent interest in the project, respectively.
PERC said Maibarara has finalized a P2.4-billion loan facility from the Bank of the Philippine Islands and Rizal Commercial Banking Corp. to fund the construction of the power facility.
