Manila Times.net
ARAGORN Power and Energy Corp. (APEC) said it has teamed up with Chevron Corp. for the development of a geothermal power project in Kalinga province. In a disclosure to the Philippine Stock Exchange, APEC said its joint venture with Guidance Management Corp. (GMC) has signed a farm-out agreement with Chevron, giving the former the option to take an equity position of up to 40 percent in the geothermal project.
“Being a [Renewable Energy Service Contract], this will be the first major international investment to the country under the Renewable Energy Act of 2008,” APEC said.
The parties also signed a joint operating agreement, under which Chevron will be responsible for the exploration, development and operation of the steam field and power plant activities for the geothermal project.
The project involves the development of steam fields that can generate around 100 megawatts of new capacity, providing an additional source of clean, indigenous and reliable base load power to the Luzon grid.
A 100-megawatt geothermal project costs approximately $300 million to put up.
The service contract for the project, which covers an area of over 26,000 hectares, was awarded to the consortium of GMC and APEC in 2008.
GMC is a tie up between Spanish, Australian and American investors while APEC is a unit of the Belle Corp.-led APC Group.
Chevron is the largest producer of geothermal energy in the world.
EUAN PAULO C. AÑONUEVO
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