The Energy Development Corporation (EDC) of the Lopez Group is set to invest PHP25 billion to maintain and expand its geothermal operations in Valencia, Negros Oriental.
The funding will support the drilling of new geothermal wells, installation of additional well pads, and infrastructure enhancements at the Southern Negros Geothermal Project (SNGP).
According to a document submitted to the Department of Environment and Natural Resources (DENR), the investment aims to sustain the power generation of EDC's geothermal plants.
"Geothermal wells typically experience a pressure drop, which can lead to reduced steam output and affect electricity generation," the company said, as reported by Philstar.com.
To address this, EDC plans to drill two to five new wells annually.
Currently, the SNGP operates at around 241.8 megawatts (MW) from its allowed capacity of 282.5 MW, utilizing 94 wells and 32 well pads.
The new investment will also cover road construction, pipeline routes, and the integration of new technologies to maximize efficiency.
To facilitate the project, EDC is seeking DENR approval to amend its environmental compliance certificate for the SNGP.
The amendment includes expanding the project area from 151.5 hectares to 400 hectares within a larger 4,027.6-hectare development block.
This expansion will help sustain operations at the Nasuji, Palinpinon, and Nasulo power plants.
The project is expected to start next year and be completed by 2057.
EDC, a subsidiary of First Gen Corporation, manages 1,480 MW of installed capacity, representing 20% of the country's renewable energy. Its geothermal portfolio accounts for 61% of the Philippines' total geothermal capacity.
In addition to its local projects, EDC is also investing $456 million to develop two new geothermal projects in Indonesia.
The company is also set to invest PHP24 billion this year to launch four geothermal projects in the Philippines.
