PNOC returns to geothermal exploration with Mt Isarog project

MANILA, Philippines - State-run Philippine National Oil Co. (PNOC) is back in the geothermal energy business as it bagged an exploration contract to develop the Mt. Isarog volcanic chain in Camarines Sur.

The $60-million Mt. Isarog geothermal project has a potential capacity of at least 20 megawatts and is estimated to generate 18 gigawatt-hours of electricity per year.

The project will be connected to the Luzon grid and power generated will be sold to the local electric cooperatives and industries to benefit households and industrial consumers in the Camarines province and other areas in Luzon.

The geothermal potential of Mt. Isarog is estimated to have the same potential as that of the Tiwi geothermal field, as the volcanic chain spans the entire Bicol Peninsula, to Samar and Leyte up to Diwata Range in Mindanao.

PNOC was the largest producer of geothermal power in the country until it sold its geothermal subsidiary, the then PNOC Energy Development Corp., to a Lopez-led consortium in 2007.

During the sale, PNOC president and CEO Antonio Cailao initiated that ‘the non-compete’ clause be stricken from the contract so that the government can still engage in geothermal exploration.

“I want PNOC to actively participate again in the geothermal business, especially because the Philippines lies in the ‘ring of fire,’ a sweet spot in geothermal energy. It is no wonder that we are number two in the world today. Geothermal energy presently accounts for about 23 percent of the total energy mix in the country. We should continue our proven expertise in this sector of renewable energy,” Cailao said.

“PNOC helped make the country the second largest geothermal producer in the world. We will solidify this effort until we become number one,” he added.

“Renewable energy is the new dot.com of the energy industry not only locally, but globally as well. In fact, PNOC is now the biggest solar energy company in the country. And we just recently inaugurated late last year the first solar campus in the Philippines,” he pointed out.

Recently, PNOC appointed Roger Buendia as president of PNOC-Renewables Corp. (PRC), PNOC’s renewable energy implementing arm and the subsidiary in charge of the project.

PRC will commence exploration activities for Mt. Isarog in the third quarter of 2010.