Geothermal de-risking fund in the Philippines draws interest from 12 firms

The Department of Energy (DOE) of the Philippines is currently evaluating proposals from 12 developers that seek to secure financial assistance from the recently announced Philippine Geothermal Resource De-Risking Facility (PGRDF). The shortlist of applicants has been shared with multilateral partners associated with the fund, including the Asian Development Bank (ADB), the Department of Finance, and the Department of Economy, Planning and Development.

Officially launched in 2025, the PGRDF seeks to accelerate early-stage geothermal exploration by providing developers with a conditionally repayable loan for exploration drilling. Funding from the facility will be considered an obligation of the borrower should the exploration activities show strong opportunities. If not, it will be considered a grant. The facility has a total funding amount of PHP 10.7 billion (approx. USD 171 million).

Although DOE Undersecretary Rowena Guevara declined to name the companies included in the short list, she indicated the list includes foreign entities operating through joint venture companies with local partners, as required by statutory ownership requirements in the Philippines. The ADB has also indicated that it intends to engage with international technical experts to aid in evaluating the merits of the applications.

Geothermal steam field development and operations in the Philippines has so far been restricted to only three companies – First Gen Geothermal and its subsidiaries, the Philippine Geothermal Production Co. Inc (PGPC), and Maibarara Geothermal Inc. (MGI). The high level of interest in the funding facility signals the potential diversification of the local business sector, driven by lowering the barrier of entry at the capital-intensive initial phase of geothermal exploration. It would be interesting to see which new players gain funding from the facility, or whether the process favors the incumbent companies.

Source: Manila Bulletin