PNOC back in the geothermal power generation
Posted on February 24th, 2010
The Philippine National Oil Co. (PNOC) was able to bag an exploration contract to develop the Mt. Isarog volcanic chain in Camarines Sur. The PNOC’s $60-million Mt. Isarog geothermal project is estimated to generate 18 gigawatt-hours of electricity per year from its potential capacity of at least 20 megawatts. It will be started in the third quarter of 2010.
It will be connected to the Luzon grid and the power generated will be sold to the local electric cooperatives and industries so household and industrial consumers in the Camarines province, as well as other areas in Luzon, would be able to benefit from it.
PNOC is not new in the geothermal power industry, it was the largest producer of geothermal power in the Philippines before it sold its geothermal subsidiary in 2007 to a Lopez-led consortium. During the negotiations then, PNOC president and chief executive officer Antonio Cailao asked that the “non-compete” clause be stricken off the contract so the government can still engage in geothermal explorations later on, just like what it is doing now.
Cailao said, “I want PNOC to actively participate again in the geothermal business, especially because the Philippines lies in the ‘ring of fire,’ a sweet spot in geothermal energy. It is no wonder that we are number two in the world today. Geothermal energy presently accounts for about 23 percent of the total energy mix in the country. We should continue our proven expertise in this sector of renewable energy.”
The Mt. Isarog exploration project is projected to have a geothermal potential equal to that of the Tiwi geothermal field, because the volcanic chain spans the entire Bicol Peninsula, to Samar and Leyte up to Diwata Range in Mindanao.
