MANILA, Philippines - Lopez-led Energy Development Corp. (EDC) has finalized its takeover of a majority stake in three of four targeted renewable energy projects in South America.
“EDC executed shareholders’ agreements and their ancillary documents with Hot Rock Ltd. of Australia, the company told the local bourse yesterday.
The agreement finalized the plan of EDC and partner Hot Rock to create project companies for each of the Longavi geothermal concession in Chile, as well as the Chocopata and Quellaapacheta geothermal authorizations in Peru.
EDC added that the deal allowed “the joint venture to commence exploration activities at each of the foregoing sites.”
In February, EDC and Hot Rock signed an agreement to acquire four geothermal projects in Chile (Calerias and Longavi) and Peru (Quellaapacheta and Chocopata). However, EDC has yet to disclose if it has completed the acquisition of the Calerias project in Chile.
“Pursuant to the terms of the shareholders’ agreements, EDC will hold 70 percent of the outstanding capital stock of each of the project companies, with Hot Rock taking the remaining 30 percent,” EDC said.
In February, EDC deployed a full team of geothermal scientists to start the development activities on the joint venture projects.
EDC’s partner Hot Rock is listed on the Australian Stock Exchange. It has so far acquired 23 geothermal tenements across Chile, Peru and Australia.
In January, EDC bagged its first international concession contract in Chile called Newen, allowing it to develop the area and later build a geothermal facility should reserves in the area prove economically feasible.
Aside from Chile and Peru, the company is also looking at opportunities to develop geothermal projects in Indonesia and Kenya.
EDC is the world’s largest integrated producer of geothermal power. It is into the exploration, development and optimization of geothermal fields, as well as the operation and maintenance of the geothermal power plants with an aggregate capacity of 1,130 megawatts (MW).
Aside from geothermal projects, the company also owns and operates the 132-MW Pantabangan-Masiway hydroelectric plants and has investments in wind energy projects in Ilocos Norte and other provinces.