Two PetroEnergy RE projects certified as commercially viable

Business World Online
Posted on October 01, 2015 08:07:00 PM

PETROENERGY Resources Corp. has secured the go-signal to move forward with its two renewable energy (RE) projects in Luzon.

The company told the stock exchange yesterday that the Energy department confirmed the commercial viability of the 12-megawatt (MW) expansion of the Maibarara geothermal power plant in Batangas and a 50-MW solar farm in Tarlac.

In its disclosure, PetroEnergy said the Energy department issued the confirmation of commerciality and certificate of additional investment for Maibarara Geothermal, Inc.’s (MGI) expansion project.

MGI is 65% owned by PetroGreen Energy Corp., which in turn is 90% owned by PetroEnergy. The company owns and operates the 20-MW geothermal plant in the municipality of Sto. Tomas. The expansion of the geothermal plant, PetroEnergy said, is expected to add at least 95,000-MW hours to MGI’s annual generation.

MGI was originally planning to expand the project by only 10 MW but has since expanded this to 12 MW to utilize the available resource in the area.

“We opted to increase Maibarara-2’s gross capacity from 10 MW to 12 MW after the successful flow-test of well... and the release of an independent resource validation by California-based Geothermal Science, Inc., which confirmed more than sufficient reserves for combined M1 and M2 power generation for 25 years,” MGI President Francisco G. Delfin, Jr. was quoted in the statement as saying.

This expansion will start to contribute revenue when it starts commercial operations in the third quarter of 2017.

A similar confirmation was secured by PetroEnergy for the first solar energy project of the company.

The project company, PetroSolar Corp., is 56% owned by PetroGreen. The project will be developed in Central Technopark in Tarlac City.

PetroEnergy and PetroSolar President Milagros V. Reyes said: “The commerciality affirmation not only converts the solar service contract from pre-development to development/commercial stage, giving us the go-signal to proceed full blast towards development...”

She added that this also serves as the first step for the Tarlac solar project, which is targeted for commercial operations in the first quarter of 2016.

“With two new RE projects declared commercial and expected to be commissioned in 2016 and 2017, PERC’s (PetroEnergy) expansion and transition to power generation is proceeding deliberately as planned,” Ms. Reyes said.

PetroEnergy -- through 40% owned PetroWind Energy, Inc. -- is also building a 50-MW wind farm in Nabas, Aklan. The first 36-MW phase of the project is undergoing testing and commissioning. -- Claire-Ann Marie C. Feliciano source