AP Renewables Inc., a subsidiary of Aboitiz Power Corp., is now studying the geothermal energy potential of two areas around Mt. Apo in power-starved Mindanao.
The Department of Energy (DOE) said that AP Renewables was issued two geothermal renewable energy service contracts in the vicinity of Mt. Apo on Nov. 29, 2013. The contracts are initially good for two years, but may be extended to a maximum of five years.
Geological, geochemical and pre-feasibility studies, plus local permitting, may be undertaken in the first two years of the service contracts. Drilling is not part of the work program, the DOE pointed out.
AP Renewables has “to determine and validate first the resource potential before drilling. Of course, it will need DOE’s approval,” said Mario C. Marasigan, director of the Energy department’s Renewable Energy Management Bureau.
Aboitiz Power earlier said in a statement that the group already started with the “first phase” of a work program for two areas around Mt. Apo, spanning North Cotabato, Davao del Sur and Davao City in Mindanao.
“This phase includes project introduction to relevant local government units and stakeholders,” said Artemio Magnayon, Aboitiz Power vice president for business development. “We will just conduct surface exploration and there will be no construction of any kind.”
Magnayon said the project would be aligned with Aboitiz Power’s “right-mix strategy” in its power generation business. The company hopes to maximize the potential of renewable energy for as long as it is available and affordable, while utilizing fossil-based power generation to ensure reliability, he explained.
Aboitiz Power is one of the biggest renewable energy firms in the country, producing 1,146 megawatts. It operates the 400-megawatt Tiwi-Makban geothermal complex in Laguna and Albay.