EDC to build up power portfolio via partnerships

MANILA, Philippines - Lopez-led Energy Development Corp. (EDC), the world’s second largest integrated geothermal company, said it will continue growing its portfolio this year.

The company is banking on partnerships for long-gestating projects, its top executive said.

“We will continue to build our portfolio of growth opportunities through partnerships,” EDC president and chief operating officer Richard B. Tantoco told reporters.

“We are open to forging partnerships in geothermal projects, both locally and internationally.”

In February, EDC and Hot Rock Ltd. of Australia signed an agreement to acquire four geothermal projects in Chile (Calerias and Longavi) and Peru (Quellaapacheta and Chocopata). However, the partners dropped Calerias and Longavi in July and Chocopata late last year after finding out that the projects are not commercially viable.

EDC is set to start preliminary survey work in its three geothermal exploration concession areas of Newen, San Rafael and Batea as part of the company’s efforts to put up the first geothermal power plant in Chile.

Tantoco said geothermal power production is a high risk, long gestation business that needs efficient operations.

Hence, EDC will focus on operational excellence, systems and process upgrades and growth for this year, he said.

Aside from Latin America, EDC is also looking at opportunities to develop geothermal projects in Indonesia and Kenya, where it already has local offices.

EDC 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.

In the nine months that ended in September, the power producer posted a net income of P7.1 billion, reversing the net loss of P670 million a year earlier on the back of higher revenues of its operating units.