By Lenie Lectura - January 31, 2017
ABOITIZ Power Corp. (AboitizPower) will no longer pursue its geothermal investment in Indonesia.
“AboitizPower has decided to exit from the greenfield geothermal exploration and development project of its wholly owned Singapore-based subsidiary, AboitizPower International Pte. Ltd. [AP Intl] in Ijen, East Java Province, Indonesia,” the power firm said on Tuesday.
AP Intl entered into the agreement with PT Medco Power Indonesia to participate in the exploration and development of a potential 2×55 megawatt (MW) geothermal-power plant in September 2015.
“AboitizPower has decided it will focus and allocate its resources for other ongoing and pipeline projects and has agreed to step aside to allow its partner to proceed with the project,” it said.
PT Medco Cahaya Geothermal, the project company as the subsidiary of PT Medco Power Indonesia, had been awarded the concession to develop the project.
Earlier, the company failed to win in the recent auction involving the geothermal assets of energy giant Chevron Corp. in the Philippines and Indonesia.
Still, the power firm is keen on other renewable projects and hopes to add solar energy to its portfolio to supplement its hydroelectric and geothermal projects.
AboitzPower targets to put up 2,000 MW of additional power capacity in the next five years. It has programmed P125 billion to achieve this target.