Lopez-led Energy Development Corp. (EDC) is preparing a P60-billion “war chest” to cover the cost of drilling 40 new geothermal wells and enhance the performance of its existing wells.
EDC has over 1,484.13 megawatts (MW) of total installed capacity and accounts for 20 percent of the country’s total installed renewable energy (RE) capacity. Its 1,189.34-MW geothermal portfolio accounts for 62 percent of the country’s total installed geothermal capacity, making the Philippines the third largest geothermal producer in the world.
EDC Vice Chairman Francis Giles Puno said the company is pursuing a 3-year plan that will not only increase the output of its geothermal wells but also add more capacity in its portfolio by drilling new wells.
“(Geothermal) is a 24-hour baseload source of RE. Having said that, over the next 3 years, we’re in a campaign to make sure that it’s in fact sustainable,” said Puno during the “Zeroing In On Net-Zero” forum organized by the Net Zero Carbon Alliance.
“The main focus of EDC over the next 3 years is to make sure that we can continue to deliver the amount of renewable source of geothermal for our customers.”
To fulfill this goal, Puno said EDC will drill “close to 40 wells over the next three years,” mostly in Leyte and Mt. Apo.
“Roughly, when you think about it, P30 billion is for the drilling operations and roughly another P30 billion to finish. Over the next 3 years, that’s a lot of capital for the operations. All of that is to be able to sustain the operations of EDC and to make sure that we can continue to extract sustainable steam from the ground,” said Puno.
EDC’s integrated geothermal power stations include the 123MW Tongonan, 180MW Mahanagdong, 134MW Upper Mahlao, 232.5MW Matibog, 110MW BacMan 1, 20MW BacMan II, 112.5MW Palinpinon 1, 60MW Palinpinon II, 52.3MW Mindanao I, 50.93MW Mindanao II, 49.37MW Nasulo, 3.6MW Mindanao III, 57.2MW Optimization Leyte.
Aside from geothermal, EDC also has a portfolio of solar, 11.99MW; wind, 150MW; and hydro, 132.8MW.
During the forum, NZCA, a pioneering consortium of Philippine enterprises committed toward collective net-zero carbon in local business, developed a Zero Carbon Gateway to help partners track their progress, including computing their carbon emissions.
“As always, climate action is a matter of urgency as we continue to experience the ever-increasing impacts of our warming planet around the world, most especially in the Philippines. NZCA aims to contribute practical measures toward decarbonization that Philippine businesses can take, starting with interventions such as renewable energy,” said Allan V. Barcena, NZCA Executive Director and EDC Assistant Vice President and Head of Corporate Relations and Communications.
NZCA, which is led by EDC, aims to engage with corporations in the Philippines to achieve carbon neutrality as a transition to net zero by 2050.
An analysis released in June found that almost half of the 2,000 largest publicly listed companies in the world have committed to a net-zero strategy. However, the report also revealed that many of these companies either do not count emissions produced by their supply chains, or depend on unreliable strategies to offset their carbon production.