Basic Energy Corp sets aside $1 billion for development
Basic Energy Corp. plans investments of up to $1 billion into geothermal and mini-hydro projects, and is in discussions with potential minority partner for the projects from China.
Reported from the Philippines, Basic Energy Corp. is reported to have plans “to invest $2 billion in geothermal, oil and gas exploration projects, according to company vice chairman Francis Chua.
Chua said that the company is currently negotiating with a Chinese partner for the projects.
Basic Energy has a service contract to develop geothermal energy in Mabini, Batangas.
It also eyes contracts for four frontier geothermal areas and 10 frontier mini-hydro areas.
Chua said Basic Energy will start building plants on these sites as early as the first half of the current year with a budget of $1 billion.
The other billion dollars will be set aside for the oil and gas exploration project in West Philippine Sea.
Chua said Basic Energy is offering these projects for joint venture but would retain control at 60 percent.
Basic got the Mabini geothermal service contract in 2008.
The project is located in Mabini town in Batangas. Basic Energy, through its contractor Filtech Energy Drilling Corp. has completed the preparation of the pre-feasibility study of the project which was conducted in 2011.
The contract area covered the whole of Calumpan Peninsula and based on the geothermal investigation indicate the existence of a low-temperature resource that could be suitable for small-scale power generation using binary units.
The pre-feasibility study shows it can produce 20 MW which is commercially viable.
The company’s indicated selling price of P5.102 to P5.228 per kilowatt hour compare favorable with the Wholesale Electricity Spot Market in Luzon in 2010 and fall within the Meralco franchise pricing in 2010.
Other geothermal renewable energy projects include: 1) East Mankayan, covering 49,000 hectares covering Benguet, Mt. Province and Ifugao. Thermal manifestation include hot springs and thermally-altered grounds;
2) Mt. Iriga covering 47,500 hectares in Camarines Sur. This is a small volcano and is part of the Bicol volcanic arc. It has only two known recorded eruptions;
3) Mt. Mariveles covering 25,000 hectares in Bataan and is part of the West Luzon volcanic arc. Thermal manifestations include Tiis, Saysain and Pucot hot springs.
4) West Bulusan covering 46,7000 hectares in the so-called Bulusan volcanic complex in Sorsogon.