Iceland firm bids for Leyte power plant

Reykjavik Energy Invest (REI) of Iceland has tendered a bid to operate a 100-megawatt (MW) geothermal power plant in Biliran, Leyte.

REI was the only bidder.

The bid was preceded by an agreement with Filtech Energy Drilling Corp. (FEDCO) representing one party and REI and Geysir Green Energy (GGE) representing the other for a service contract on the Biliran geothermal field.

The company has prepared the establishment of a new company with 60-percent FEDCO ownership to comply with the 60-40 national requirement under the Constitution. The remaining 40 percent stake will be held by REI and GGE.

“Work on the establishment of the Philippine company with FEDCO is already under way. This will be a new joint venture company and is to be established in the Philippines by the three parties,” the company said.

REI is Reykjavik Energy’s international business development and investment arm. It invests in geothermal exploitation rights as well as site development, construction and operation of geothermal fields, and seeks to acquire geothermal plants currently in operation.

Reykjavik Energy is one of the world’s leading authorities in the utilization of geothermal energy. The company supplies a large portion of the Icelandic population with geothermal water for domestic heating and gradually develops new steam fields for power production.

REI, together with the Lopez-led First Gen Corp., is vying for the government’s 60-percent stake in PNOC-Energy Development Corp. (PNOC-EDC).