PGPC lines up new projects to double geothermal capacity

MANILA, Philippines — Philippine Geothermal Production Co. Inc. (PGPC), a wholly owned unit of SM Investments Corp. (SMIC), has lined up new exploration projects as part of efforts to double its geothermal capacity.

PGPC plans to invest about P3 billion annually for new projects in Kalinga, Daklan, and Cagayan in Northern Luzon, and in Mount Labo and Malinao in Southern Luzon.

Through these new exploration projects, PGPC is targeting to increase its steam production by 300 megawatts (MW) of baseload renewable energy.

This will hike the company’s geothermal capacity to an estimated total of 600 MW.

The SM Group, through SMIC, acquired PGPC for P26.6 billion last year.

SMIC is boosting its investments in renewable energy in support of the country’s growing advocacy for green energy and sustainable development.

“SM is committed toward harnessing clean energy by increasing its capacity to provide steam,” SMIC president and CEO Frederic DyBuncio said.

“The Philippines’ location within the ring of fire provides a huge opportunity for a low-carbon source of power. This is proven by PGPC’s half a century of reliable and consistent production of steam converted into renewable baseload electricity for its communities,” he said.

PGPC operates the Tiwi geothermal steam field in the province of Albay and the Mak-Ban geothermal steam field in the provinces of Laguna and Batangas.

The Tiwi and Mak-Ban geothermal steam fields capitalize on the earth’s natural heat to produce steam that is captured by production wells.

The steam is delivered to third party power plants to generate electricity which then goes to power transmission lines for distribution to homes and offices.