Lopez energy firm to acquire Chile power project

MANILA, Philippines - Energy Development Corp. (EDC), the Lopez-led geothermal firm, expects to sign a joint venture deal with Canadian power firm Alterra Power Corp. for a project in Chile, its top official said.

“Were working on a joint venture agreement with Alterra for the Mariposa project in Chile,” said EDC president Richard Tantoco.

Under the plan, EDC would acquire 70 percent of Alterra’s Mariposa geothermal project in the central region of Chile.

“We hope to sign the agreement within the next 90 days,” Tantoco said during the weekend.

The joint venture partnership with Chile strengthens EDC’s overseas presence, Tantoco said. He added that the company is looking into three other sites in Chile.

According to its website, Alterra is a leading global renewable energy company which operates six power plants totaling 566 megawatt of capacity, including two geothermal facilities in Iceland, a geothermal plant in Nevada, British Columbia’s largest run of river hydro facilities and the province’s largest wind farm.

Last week, the Lopez-led firm disclosed that it has partnered with Australian Hot Rock Ltd. for the development of the Quellaapacheta geothermal project in Peru.

EDC said the two companies established Geotermica Quellaapacheta Peru SAC for the project. Similar to the Mariposa project in Chile, EDC owns 70 percent of the joint venture, which would develop the Quellaapacheta project.

The company said Hot Rock agreed to transfer the Quellaapacheta project to Geotermica, a deal that was completed on April 15.

EDC has started preparing the work program for geological, geochemical and geophysical survey work at the Quellaapacheta project in Peru.

The Lopez-led EDC, an integrated geothermal energy producer has a portfolio of steam fields and power plants in the Philippines.

It remains the largest producer of geothermal energy in the Philippines, accounting for 62 percent of the total country installed geothermal capacity.  It has also obtained and is developing geothermal concessions in Chile aside its project in Peru.

It has set aside P32 billion for its capital expenditure program for the year as it strengthens its foothold in the country’s growing renewable energy industry.