Toshiba offers to build geothermal plant in Negros

Japanese firm Toshiba Engineering Corp. has offered to construct the 20-megawatt (mw) Nasulo power plant project of PNOC-Energy Development Corp. (EDC).

PNOC-EDC president Paul Aquino told reporters that this is the only bid they have received so far for the Nasulo geothermal project in Southern Negros.

The Toshiba unit is engaged in electric power-related construction, including planning, project design and construction.

“We are in the process of evaluating Toshiba’s bid. We may have something decided by end of March,” Aquino said.

PNOC-EDC, now majority-owned by the Lopezes, is currently the largest geothermal producer in the country with an installed capacity of 1,149.4 mw or 60 percent of the country’s total geothermal capacity.

The Nasulo project located at the municipality of Valencia in Negros Oriental is estimated to cost P2.3 billion.

Based on PNOC-EDC’s timetable, the construction of the Nasulo power facility is set to start this year. If everything goes as planned, the geothermal facility will be completed by 2010.

The electricity to be generated by the Nasulo geothermal project is expected to displace grid electricity from fossil fuels and reduce green house gas emissions by 74,975 tons of carbon dioxide annually for the 20-year duration of the project.

Aquino said the load factor of the plant is estimated at 80 percent, resulting to an average of 140 gigawatthours produced annually. Steam supply will come from the Southern Negros production field.

PNOC-EDC has set a capital expenditure of P10.8 billion this year to include the construction of the Nasulo plant and another 50 mw geothermal project in Mindanao of around P4.6 billion. The remaining capex will be used for maintenance and other expenses of the company’s geothermal facilities.

“We have set our capex at an average of P5.6 billion annually but this year its around P10.8 billion,” he said.

The company plans to build steam and power generating facilities totaling 310 mw by 2015 to capitalize on the projected demand growth and supply shortages foreseen by the Department of Energy.

These include new steamfields in Dauin in Negros Oriental and three sites in Bicol (Tanawon and Rangas in Sorsogon and Kayabon in Albay) to generate 40 mw from each between 2011 and 2012. Its biggest prospect is the Cabalian field in Southern Leyte, from which 100 mw to 150 mw could be onstream by 2015.