First Gen Corp. is preparing to secure as much as P60 billion to pursue drilling of as much as 40 wells to continue extracting steam for its existing geothermal projects.
First Gen, through its subsidiary, Energy Development Corp. (EDC), currently has around 1,185 megawatts (MW) of geothermal capacity that accounts for 62 percent of the country’s total installed capacity for such resource, making the Philippines the third largest geothermal producer in the world.
“A lot of it (wells) will be in Leyte and also in Mt. Apo. All of that is to be able to sustain the operations of EDC. Roughly, when you think about it, P30 billion (is needed) for the drilling operations and roughly another P30 billion to finish. Over the next three years, that’s a lot of capital for the operations,” said Francis Giles Puno, First Gen president and chief operating officer, at the sidelines of a corporate event hosted by the Net Zero Carbon Alliance in Pasig city yesterday.
Puno said the P60 billion will be sourced from a mix of internally generated funds and borrowings.
“That’s the only complication with geothermal, you need to clean up and invest to be able to extract more from the wells. Pretty much, to sustain and a little bit of expansion,” Puno said.
First Gen has a combined capacity of 3,500 MW with a portfolio including natural gas, geothermal, hydroelectric, wind and solar power capacities. -Jed Macapagal
