EDC and Hot Rock execute JV agreements for Chile and Peru projects

Colca Canyon, Peru (source: flickr/ CmdrGravy, creative commons)
Alexander Richter 8 May 2012

Energy Development Corp of the Philippines and Australian Hot Rock Limited executed agreements that will found JVs around geothermal concessions and projects at Longavi in Chile, Chocopata and Quellaapacheta in Peru, with EDC taking a 70 percent stake in the projects.

Reported last week, the Philippine Energy Development Corp. (EDC), reports it has executed shareholders’ agreements (SHA) and ancillary documents with Hot Rock Ltd. (HRL) of Australia.

“In a disclosure to the Philippine Stock Exchange, EDC said the agreement will set up project companies for each of the Longavi geothermal concession in Chile, and the Chocopata and Quellaapacheta geothermal authorizations in Peru.

The project companies will allow the joint venture to commence exploration activities at the said sites.

Under the signed SHA, EDC will hold 70 percent of the outstanding capital stock of each of the project companies, while HRL will take the remaining 30 percent.

In February, EDC said it acquired a 70-percent stake in four geothermal projects in Chile and Peru. “We are pleased with the speedy conclusion of the negotiations with HRL as we now look forward to starting exploration work in what we view as attractive geothermal concessions in both Chile and Peru. These projects will showcase EDC expertise and help elevate the company as a Philippine corporate champion on the world stage,” Federico Lopez, EDC Chairman and Chief Executive, earlier said.

EDC said HRL acquired 23 geothermal tenements across Chile, Peru and Australia. With an experienced and accomplished geothermal team, EDC said HRL has been among the first to identify and obtain some of the most attractive concession areas in Latin America.

As the world’s largest integrated geothermal power producer, EDC and HRL now seeks to accelerate the development of the projects and offer a clean, reliable and indigenous source of energy to the people of Chile and Peru.

EDC and HRL are looking at the possibility of expanding the scope of partnership by including the latter’s other sites.

With the recent confirmation by the Chilean Ministry of Energy of the award to EDC of the Newen, San Rafael and Batea geothermal exploration concession areas to be exclusively developed by EDC, the company boasts a portfolio of geothermal exploration projects in Chile.

EDC said a full team of geothermal scientists will be deployed to Chile this month to start development activities on the joint-venture projects and EDC granted projects.

With over 35 years of experience in developing geothermal power projects in the Philippines, EDC now looks to leverage its technical expertise and expand its operations globally.

EDC has also submitted 13 applications for geothermal concessions in Chile, and is also looking at opportunities to develop geothermal projects in Indonesia and Kenya.

EDC is the world’s largest integrated producer of geothermal power and the acknowledged global leader in wet steam technology. EDC is engaged in the exploration, development and optimization of geothermal fields, as well as the operation and maintenance of the geothermal power plants with an aggregate capacity of 1,130 megawatts.

“The acquisition of these concessions in Latin America are the first steps in realizing our vision to establish a global presence and further solidify our position as the pre-eminent international leader in geothermal power development,” Lopez said.”

Source: Philippines Business Mirror