First Gen eyes P25-B funding for Negros geothermal biz

MANILA, Philippines – First Gen Corp. is allotting up to P25 billion to optimize the group’s geothermal operations in Negros Oriental, including boosting the business with stronger power storage systems.

Through its subsidiary Energy Development Corp. (EDC), a major player in the renewables space, the group sought the government’s clearance to amend its environmental compliance certificate for the Southern Negros Geothermal Project (SNGP).

READ: First Gen sets P41.7B for projects

This would allow the project operator to pursue expansions and invest in technology upgrades.

The Lopez-led firm said the multibillion-peso fund will help finance these plans through 2057.

Currently, SNGP, which has been running for 43 years, operates at 241.8 megawatts (MW) out of its allowable 282.-MW capacity.

Based on a document from the Department of Environment and Natural Resources, EDC hopes to increase the project area from 151.5 hectares to 400 hectares. At the same time, it hopes to reduce the development block area from 5,163 hectares to 4,028 hectares.

“A cornerstone of this responsible development is the voluntary 22-percent reduction of the project’s development block,” First Gen said in a statement.

“This focused approach restricts land use strictly to confirmed technical needs, significantly minimizing land disturbance in the area,” the company said.

“Refining its development block will enable First Gen to sustain its renewable energy production while preserving the natural environment in Negros Oriental,” it added.

Aside from these, EDC is aiming at adding eight production wells and two well pads, as well as deploying more pipelines and steam-gathering facilities.

EDC is also looking at drilling up to 43 make-up and replacement wells to “ensure a stable, indigenous supply of geothermal steam for Negros for decades to come.”

The company likewise proposed to expand its battery energy storage system capacity from 30 megawatt-hours (MWh) to 90 MWh.

This would be supported with a dedicated transmission line.

First Gen has 31 renewable energy facilities that harness the power of solar, wind, hydro and geothermal resources. INQ