Initial 5 MW capacity planned for Biliran geothermal project
Nickel Asia raises its stake in Emerging Power Inc. (EPI) through a conversion of debt into equity. The debt was used for further development of among others the initial 5 MW Biliran geothermal project.
In adisclosure to the Philippine Stock Exchange, Nickel Asia Corporation, the Philippiens’s top nickel miner, has announced raising its stake in renewable energy subsidiary Emerging Power Inc. to 91 percent from 66 percent through the conversion of a P1.5 billion ($29 million) loan into equity.
The company entered into a Deed of Assignment with EPI for the assignment of its P1.5 billion ($29 million) advances in EPI following a Capital Call made by EPI.
In consideration for the assignment, EPI shall, subject to the approval by the Securities and Exchange Commission of an increase in EPI’s Authorized Capital Stock, 1.19 billion shares in favor of Nickel Asia.
Last year, Nickel Asia infused P660 million ($13 million) in additional equity into EPI together with the extension of a P1.5 billion three-year term loan.
These funds, together with bank financing at the project company level, was meant to complete EPI projects of 105 Megawatt (MW) lined up for 2016.
The funds were also used for the development of the first geothermal power plant with a capacity of 5 MW under its 60 percent-owned subsidiary, Biliran Geothermal, Inc. (BGI). The total project cost is estimated at about P800 million ($15.8 million).
Seven holes have previously been drilled in the Biliran geothermal field by its 40% partner in BGI, all of which exhibit the required temperatures for the production of geothermal power.
The development of additional plants and required infrastructure, as well as further drilling of this potentially large geothermal field, is currently under study.
“We have gained a lot of momentum in the past year especially in our Subic project and also in the other areas. EPI is determined to develop all of these clean energy projects in the soonest possible time,” –said NAC President Gerard H. Brimo.
Source: Manila Bulletin