SMIC unit starts geothermal drilling in Albay

MANILA, Philippines — Philippine Geothermal Production Co. Inc. (PGPC), a unit of the Sy family-led SM Investments Corp. (SMIC), has started its geothermal exploration activities at Mt. Malinao in Albay.

Through PGPC’s drilling rig, Pioneer 1, exploration activities are now in full swing as part of efforts to develop a geothermal steam field at Mt. Malinao.

The project is expected to generate up to 49 megawatts (MW) of geothermal power, the company said.

Mt. Malinao, a potentially active stratovolcano, is among the new concession areas being developed by PGPC across Luzon.

This is aligned with the company’s goal of providing up to 300 MW of power in the region over the next few years.

PGPC currently has project concession sites in geothermal-rich provinces of Kalinga, Benguet, Cagayan, Quezon, Camarines Norte and Camarines Sur.

Typically developed near volcanoes, a geothermal steam field is a source of baseload power, or the minimum amount of electricity needed on the grid to meet constant demand.

Earlier, PGPC president Napoleon Saporsantos Jr. said the company’s new projects would help minimize the risk of power supply shortages in the Luzon grid.

“They will also play a pivotal role in the Department of Energy’s target of having renewable energy sources account for at least 50 percent of the country’s total power capacity by 2040,” Saporsantos said.

As the first commercial geothermal power resource provider, PGPC currently operates the Tiwi steam field in Albay and the Mak-Ban steam field spanning Laguna and Batangas.

With a combined capacity of 300 MW, the assets have been supplying geothermal energy to client power plants since 1979.