Investor group report on proposed Kalinga plant in the Philippines

Investor group report on proposed Kalinga plant in the Philippines Approaching Tinglayan, Kalinga, Philippines (source: Panoramio/ Valencerina clifton)
Alexander Richter 12 Mar 2011

Representatives of an investor group that are planning to build a geothermal power plant in Kalinga, Philippines gave a report on the status of the project and plans. The companies represented were Chevron Geothermal Philippine, Aragorn Power and Energy Corp. and CGPHI.

Reported from the Philippines, “Two international investors took the floor during the Sangguniang Panlalawigan regular session on March 8 to report the proposed Kalinga Geothermal Project here.

Mr. Antonio Yee, President and General Manager of Chevron Geothermal Philippine Holdings Inc. (CGPHI), Bernardo Lim, President and Chief Executive Officer of Aragorn Power and Energy Corporation (APEC) and Ed Sevilla of CGPHI each presented their reports covering their company background, how geothermal production works, status of the consultations and the plans which they intend to undertake.

In his presentation, Lim said that eight out of the 11 ancestral domains have signed a memorandum of agreement (MOA) through the partnership of APEC and Guidance Management Corporation (GMC).

In November 12, 2010, he said that APEC-GMC signed a farm-out and joint operating agreements with CGPHI giving the later a legal status in the operation.
Providing an update on their community visits, Yee said that the recent consultations made by CGPHI delivered the re-affirmation of support from seven out of the ten ancestral domains.

He said that surface sampling was also completed in Colayo and Balatoci Pasil.

Based on the Service Contract Work program timeframe submitted to the Department of Energy, Lee said that for 2011, their company will be working on the geophysics or surface exploration of the area.

From 2012 to 2013 activities will be more on drilling and testing which would require the installation of instruments and equipments to test the capacity of the geothermal project. 2014 will be the evaluation of the tests.

If found positive and with the consent of the involved ancestral domains, drilling and operation will take place on 2015.

The scope of the renewable energy service contract ,he said would give the company a maximum of 50 year term including renewals. The contract covers geothermal exploration, development and production phases.

“The activity will not involve mining of oil, gas or minerals,” he said assuring that the company will be observing utmost responsibility in the operations which he said is safe for the environment.

The area would cover at least 25,682 hectares of land involving the ancestral domains of Culayo, Balatoc, Guinaang, Dangtalan and Ableg of Pasil; Uma of Lubuagan; and Tinglayan, Dananao, Sumadel, Tulgao and Bangad of Tinglayan.

As of press time, the companies have yet to secure the Free Prior and Informed Consent from the people of Sumadel and Tulgao.

If successful, Kalinga according to Yee will be the third geothermal plant to be operated by Chevron in the country or the seventh in the world. The Philippines is the second largest geothermal producer in the world ,second to the United States of America.

Chevron, he said pioneered the geothermal industry in the country and remains as the world’s leading geothermal energy developer.”

Source: Philippine Information Agency