The Department of Energy (DoE) has given its go-ahead to Maibarara Geothermal Inc. (MGI) to start the development and construction of the 20-megawatt Maibarara integrated geothermal steam field and power plant project in Sto. Tomas, Batangas, the first geothermal project covered by the Renewable Energy Act of 2008.
In a disclosure to the Philippine Stock Exchange, the company said the DoE’s issuance of a confirmation of commerciality was the first step to making the planned facility a reality.
“After a thorough review of the work accomplishments, project funding, related construction, power sales, and transmission agreements reached by MGI, the DoE finds the project viable for commercial development,” Energy Undersecretary Jose Layug Jr. said.
“The Maibarara geothermal project is the first renewable energy project entirely initiated and implemented under the 2008 RE Law framework to achieve commerciality, a milestone that demonstrates not only MGI’s operational achievements but also the growth potential of the country’s RE industry,” he added.
The service contract for the Maibarara development area was awarded to listed firm PetroEnergy Resources Corp. (PERC) in February 2010 after emerging the winning bidder for the block in October 2009.
PERC, through subsidiary PetroGreen Energy Corp., forged a joint venture with Trans-Asia Oil and PNOC Renewables Corp. to form MGI. PetroGreen holds a 65-percent stake in the company, while Trans-Asia has 25 percent and PNOC Renewables holds the remaining 10 percent.
From February 2010 to September 2011, MGI worked to secure the various permits required to undertake a geothermal project, including an environmental compliance certificate from the Department of Environment and Natural Resources, as well as local government endorsements and business permits from the Sto. Tomas local government.
MGI also successfully registered the project at the Board of Investments, forged an emissions reduction purchase agreement, and inked a grid connection agreement with the National Grid Corp. of the Philippines.
