AG&P Industrial (Atlantic, Gulf and Pacific Company of Manila Inc.) entered the renewable energy (RE) space after signing a memorandum of understanding (MoU) with Cresphil Inc., Energy Stream Power Corp. and Royal Eijkelkamp for the exploration and development of geothermal resources.
The consortium is initially developing the Biliran II Geothermal Energy project in the Biliran with an estimated capacity of 50 megawatts (MW) to 70 MW.
Cresphil and Energy Stream, as the project proponents, will oversee government permitting, procurement of requirements, planning and reporting in compliance with the rules, regulations, and policies of the Department of Energy (DOE), Department of Environment and Natural Resources (DENR) and local government units.
AG&P Industrial said it would serve as the technical partner and EPC contractor, bringing its expertise and resources in infrastructure development and project management, including civil works and earthworks and the construction of necessary facilities for the drilling, power plant and other related infrastructure to support the successful implementation of the project.
“AG&P Industrial has built over a century of legacy from shaping the modern face of the Philippines to building oil and gas and clean energy mega-projects worldwide. This alliance signifies our entry into renewables in the clean energy sector that we are spearheading through our leading downstream, liquid natural gas/natural gas line of business,” AG&P Industrial president Alex Gamboa said.
He said the Biliran project would not only enhance energy security but also drive sustainable economic growth and environmental stewardship.
The project is expected to be constructed and operationalized within three years, he said.
“The partnership brings together our forward looking vision for clean energy through increasing geothermal capacity in the Philippines and nearby regions. A stable source of renewable energy, with a small land and visual footprint, geothermal energy reduces the use of fossil fuels, producing minimal carbon dioxide and near-zero nitrous oxide and sulfur dioxide,” Cresphil chairman and chief executive Jose Silvestre Natividad said.
Energy Stream chief executive Carlos Ruiz said the alliance is a critical step towards bringing the Biliran II geothermal project online.
Ruiz said the latest 3G evaluation of the Biliran II Geothermal project area suggested that it is a separate and distinctive geothermal system of Biliran Island.
“Based on ‘power density’ calculations in areas with initial resource boundaries, the BIIG project has geothermal energy potential of up to 50 to 70 MW in a 11,178-hectare area that will increase the capacity of renewable energy and contribute towards Green Energy Auction Program, designed by DoE to help achieve the government’s target of expanding renewable energy in the energy mix to 35 percent by 2035 and 50 percent by 2040,” he said.
Netherlands-based Royal Eijkelkamp chief executive Huug Eijkelkamp said they are honored to be a part of the consortium to bring online the project and unlock the geothermal assets value.
“Currently in the pre-development phase, we will bring to the project advanced drilling solutions, including training and supply of equipment for the geothermal exploration scope,” he said.
