Iceland-based group hikes equity in RP geothermal firm

MANILA, Philippines -- Geysir Green Energy, backed by Iceland-based investors and a global geothermal company, has increased its ownership in Envent Holding Philippines from 50 percent to 80 percent as an indication of continued interest in the Philippine geothermal development.

Gudmundur F. Sigurjonsson, Envent president and chief executive officer, said this is an indication of continued interest of investors in the Philippine geothermal development.

“We are pleased with the increased attention that Geysir is showing our business in the Philippines. Our geothermal projects are making good headway; the surface exploration program in Biliran is now entering its final stage. Our business is well set to take advantage of the new Renewable Energy Act and to help the Philippines develop its substantial geothermal resources,” he said.

Envent is currently working on several geothermal projects in the Philippines and is committed to contributing to the Philippine government’s target of an additional 1,200 MW of renewable energy by 2013.

Envent´s most advanced project in the Philippines is on Biliran island, located in the Eastern Visayas region of the Philippines.

The Biliran project is being executed through Envent´s associate company, Biliran Geothermal Inc.

The project is currently progressing well with surface explorations scheduled to be completed in the second quarter of 2009.

Geysir´s increased ownership of Envent complements the recently promulgated Philippines Renewable Energy Act of 2008. The Act seeks to accelerate the exploration and development of renewable energy resources in the Philippines.

The law promotes the purchase, grid connection and transmission of electricity generated from renewable energy sources, and provides for incentives such as exemption from various taxes and duties to renewable energy developers in the country.  

Thor Gislason, chief technology officer, Geysir Green Energy and Chairman of the Board of Envent, believed that these are interesting times in the Philippines for renewable energy.

“The new Renewable Energy Act is an important stepping-stone for the power industry here and for the sustainability of the renewable power industry in the Philippines. We are pleased to increase our ownership in Envent and are committed to taking advantage of the benefits that the new Renewable Energy Act has to offer,” he said.

Geysir’s co-shareholder is Reykjavik Energy Invest. Both companies are based in Iceland, where an impressive 100 percent of the power capacity is derived from renewable sources (23 percent geothermal and 77 percent hydro).

Since its finding in January 2007, Geysir has invested around $650 million in geothermal businesses and projects around the world. Building on its extensive experience from the Icelandic geothermal arena, Geysir has received significant attention within the industry and is recognized as a serious and dynamic player in the field.

Reykjavik Energy Invest is Reykjavik Energy’s international business development and investment arm. Reykjavik Energy is a geothermal power generation company providing the Iceland capital region with power and multi-utility services.

Biliran Geothermal Inc. was specifically established to undertake upstream geothermal development activities on the island of Biliran in the Eastern Visayas region of the Philippines.

Upstream geothermal activities include the exploration of geothermal areas, well-field construction and the extraction of steam from the area. The company is owned by Filtech Energy Drilling Corp. (Fedco) and Envent Holding Philippines.