APC to delay large geothermal project in North Luzon, Philippines

Binga Dam, Luzon, Benguet/ Philippines (source: flickr/Storm Crypt, creative commons)

Alexander Richter 23 Eyl 2014

APC Group Inc. from the Philippines said on Monday it had delayed by one or two years the opening of a USD $300 million geothermal power plant in northern Philippines due to construction-related problems.

According to Reuters, the project is currently being developed between APC and Chevron Geothermal Philippines Holdings Inc and it was expected to go online in 2018.

“But difficulties in reaching the mountainous project site and safety issues are hampering the completion of the 100-megawatt (MW) facility, APC Group director Bernardo Lim told reporters.”

Jackson Ongsip, APC chief finance officer said that “You need to consider the terrain. It is far and the road network is difficult,”

The expected output of the plant is around 100-MW according to the information of the Ministry of Energy of Philippines, Ongsip said.

The same news source details that “APC currently has a farm-in agreement with the local unit of Chevron, which is seeking the department’s approval to take up as much as 60 percent of the project once operational.”

Bearing all of this in mind, there is a lingering issue in the Philippines. Despite being the world’s second-largest geothermal power producer, the country needs “600 MW of new power supply before March to avert rotating brownouts on the main Luzon Island, home to its manufacturing and call centre industries.”

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Source: Reuters via ABS-CBN News