Business Mirror
Published on Thursday, 10 January 2013 19:56 Written by VG Cabuag / Reporter
ARAGORN Power and Energy Corp. (Apec) of the APC Group Inc., successfully sought an extension of its Geothermal Renewable Energy Service Contract (GRESC) from the Department of Energy (DOE).
In a disclosure to the stock exchange, APC Corporate Secretary Edmundo Tan said the extension is good for one year. “The DOE recently approved a one year extension of the term of the GRESC of Apec. The extension was granted to finalize the pre-development stage activities necessary for the evaluation of the geothermal resource,” said Tan.
Apec and its partner Guidance Management Corp. own the GRESC for a 26,000-hectare area in the province of Kalinga. The site is estimated to have a power-generation potential between 120 megawatts (MW) and 200 MW. The project is estimated to cost $300 million.
APC and Chevron Corp. earlier signed an agreement to put up a geothermal power plant in Kalinga.
The parties signed a farm-out agreement which gives APC the option to take an equity position of up to 40 percent in the geothermal project. Chevron, meanwhile, will be responsible for the exploration, development and operation of the steam field and power plant activities
The project is meant to provide an additional source of clean, indigenous and reliable base-load power to the Luzon grid. source
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