Atlantic, Gulf and Pacific Company of Manila Inc. (AG&P Industrial) has ventured into renewable energy as it signed an exclusive memorandum of understanding (MOU) with Cresphil Inc., Energy Stream Power Corp. and Royal Eijkelkamp for a geothermal resource in Eastern Visayas.
AG&P Industrial said the MOU will be for the exploration, development, management of geothermal resources to promote the sustainable utilization of geothermal energy through the Biliran II geothermal energy project.
Under the partnership, Cresphil Inc. and Energy Stream Power Corp. as project proponents, will oversee all 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 and permits of all local government units involved in this project.
“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,” said Jose Silvestre Natividad, Cresphil chairman and chief executive officer, in a statement.
Natividad said the Biliran II project is expected to reduce reliance on foreign fossil fuels and create jobs to trigger overall socio-economic progress of the region.
Carlos Ruiz, Energy Stream Power chief executive officer, said the Biliran project has an energy potential of up to 50 to 70 megawatts (MW) in a 11,178 hectares area.
The parties said the project is in the pre-development phase in order to be brought to advanced drilling solutions, including training and supply of equipment.
AG&P Industrial will also serve as the technical partner and engineering, procurement and construction contractor for the project. It will handle civil works and earthworks and the construction of facilities for the drilling, power plant and other related infrastructure.
Prior to this RE venture in the Philippines, AG&P as a group earlier developed a liquefied natural gas terminal in Batangas.
