PNOC returns to GT business with Mt. Isarog project

In the Philippines, the Department of Energy awarded a geothermal exploration contract to state-run Philippine National Oil Co., which will spend upwards of $60 million to put up a geothermal power plant on Mt. Isarog, Camarines Sur. PNOC says the project has a potential capacity of at least 20 MW and an 18 gWh of electricity per year. The plant will be connected to the Luzon grid and electricity will go to the local electric cooperatives and industries. Exploration is to begin in the third quarter of 2010. PNOC used to be the largest producer of geothermal power in the country, until it sold Energy Development Corp. in 2007. During the sale, PNOC president and CEO Antonio Cailao moved that ‘the non-compete’ clause be stricken from the contract so that the government could still engage in geothermal exploration and the Mt. Isarog project marks the return of the government to the geothermal energy business.