PNOC-EDC shortlists 4 foreign firms keen on geothermal plant

The country’s leading producer of geothermal energy, the state-owned Philippine National Oil Co.-Exploration Development Corp. (PNOC-EDC) shortlisted four international firms eyeing the P1.6 billion, 20-megawatt Nasulo or Palinpinon II optimization geothermal power plant in Negros Oriental.

PNOC-EDC said four firms passed eligibility requirements for the full turnkey contract. These are ALSTOM Power New Zealand Ltd., Kanematsu and Hyundai consortium, Marubeni Corp., and Ormat International Inc.

The P1.6 billion full turnkey contract includes the construction, installation and commissioning of a 20 MW geothermal power plant, and the construction of a switching station that will be connected to Napocor’s 138 kilovolt transmission line in Nasuji. The four eligible bidders will inspect the project site prior to the submission of technical bids.

The Nasulo geothermal project formerly referred to as the Palinpinon II Optimization Project is one of PNOC-EDC’s geothermal projects in Southern Negros.

Scheduled for commissioning in 2007, the project is aimed at meeting the projected growth in energy demand and supplying stable electricity to the Visayas grid.

The power demand for Visayas is expected to grow at an average of 5.5 percent annually from 1,113MW in 2005 to 1,849MW in 2014. To meet the demand, an additional 600MW is required.

Aside from providing power, the Nasulo geothermal project is projected to earn $224,000 annually based on the Kyoto Protocol incentives for clean energy.

"The Dutch Government has offered to buy credits equal to the avoided carbon dioxide gas of 40,000 tons per year from the geothermal project at $5.6 per ton carbon starting 2008," PNOC- EDC president and chief executive officer Paul Aquino said. The Philippines is one of the 155 signatories of the Kyoto Protocol.

Under the Kyoto Protocol, ratifying countries set mandatory targets on emissions of six gases that contribute to global warming: carbon dioxide (CO2), methane (CH4), nitrous oxide (N20), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulfur hexafluoride (SF6).

Most industrialized nations are required to cut emissions below 1990 levels, although some will be allowed to increase emissions by up to 10 percent over 1990 levels. In general, developing nations have no obligation to cut emissions now, but may be asked to make future cuts. Overall, the protocol’s goal is to reduce carbon emissions by five percent below 1990 levels by 2008-2012, with further reductions to be negotiated in the future.

Countries can also compensate for their emissions by helping developing nations develop less polluting energy sources. Ultimately, they may also be given credit for creating carbon "sinks" – such as forests – that soak up and store carbon.

PNOC EDC operates the 192.5-MW Southern Negros Geothermal Production Field in Negros Oriental. This facility has been providing energy to Negros Oriental, Negros Occidental, Cebu and Panay.

In addition, the state-owned firm has three other operating geothermal fields in Leyte, Bicol and North Cotabato. PNOC-EDC’s geothermal fields which have a total capacity of 1,149.4 MW account for more than 60 percent of the country‚s installed generating capacity.