12 MW Maibarara Geothermal Project Expansion Breaks Ground for 4Q, 2017 Operation
Maibarara Geothermal Inc. (MGI) held a ceremonial groundbreaking for its 12 MW Maibarara-2 Geothermal Power Facility (MGPF) in Sto. Tomas, Batangas. The event which was held yesterday, October 26, 2016, was led by Department of Energy (DOE) Assistant Secretary Atty. Richie Avigale R. Pilares and Atty. Jose M. Layug, former DOE Undersecretary. It was also graced by Sto. Tomas LGU officials led by Mayor Edna P. Sanchez and representatives from major equipment supplier, Fuji Electric of Japan.
MGI is a joint-venture company owned by PetroGreen Energy Corp. (65%), Trans-Asia Oil & Energy Development Corp. (25%), and PNOC-Renewable Corporation (10%). PetroGreen Energy Corp. (PGEC) is a subsidiary of listed PetroEnergy Resources Corporation (PERC).
Maibarara-2 is currently the only new geothermal power station being constructed in the country. MGI Chair and PGEC President Milagros V. Reyes declared “We target Maibarara-2 to be on-line by 4Q, 2017. Thus, we expect MGI revenues to increase further by 2018 along with our royalty remittances and tax payments to our host LGU. And as important, Maibarara-2 when commissioned will be the fourth power station completed by parent company PGEC in four years following our 20MW Maibarara-1 in 2014, 36MW Nabas-1 wind in 2015 and the 50MW(DC) Tarlac-1 solar facility in 2016.
MGI President F.G. Delfin Jr. said, “The 20MW Maibarara-2 project was based on the successful drilling, completion, and from testing of wells MB-15D and MB16RD in 2014-2015. After California-based Geothermal Science, Inc. (GSI) independently validated that Maibarara reservoir has more than sufficient resources for combined M1 and M2 power generation for 25 years, the MGI partners decided to increase M2 from the original capacity of 10MW grows to 12MW. This improved the project economics that led to the signing of an offtake agreement for M2 with Phinma Energy and a ₱ 1.4B project loan with Rizal Commercial Banking Corp. (RCBC). Despite its modest size, Maibarara-2 combines the advantages of being base-loaded, not FIT-dependent, renewable, and free of harmful greenhouse gas emissions.”