Additional funding provided to Biliran geothermal project by EPI
Nickel Asia, as majority owner of Emerging Power Inc., is providing additional funding for the development of the Biliran geothermal project in the Philippines.
Announced this morning, the board of Nickel Asia Corp. has approved an additional equity contribution of P660 million ($14 million) to its 66-percent-owned renewable energy subsidiary Emerging Power Inc.
The board also approved a separate P1.5-billion ($33 million) three-year term loan to be provided by the listed firm.
“These funds, together with bank financing at the project company level will complete EPI projects of 105 megawatts lined up for 2016,” Nickel Asia said in a disclosure to the stock exchange.
Nickel Asia said part of the funds would be used for the development of the first geothermal power plant with a capacity of 5 MW under 60-percent-owned subsidiary Biliran Geothermal Inc. The total project cost is estimated at P800 million ($17 million).
It said seven holes were drilled in the Biliran geothermal field by 40-percent partner Orka Energy of Iceland, all of which exhibited the required temperatures for the production of geothermal power.
The development of additional plants and required infrastructure and further drilling of the 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 Nickel Asia president and chief executive Gerard Brimo.
Emerging Power is also said to be developing a 10-MW solar project in Camarines Sur, a 2.5-MW biogas project in Quezon and a 10-MW solar and bunker hybrid project in Northern Palawan.
Source: The Standard