Geothermal project seen to bring huge profits to Biliran

TACLOBAN CITY, Philippines — A proposed geothermal project in Biliran province in Eastern Visayas is expected to greatly benefit the island’s economy and hopefully make the Philippines the biggest producer of geothermal energy in the world. "This is a very good project. It is going to change the life of people in Biliran," President Gloria Macapagal-Arroyo said during a meeting with members of the Regional Development Council of Region 8. The project is one of three geothermal contracts awarded by the government last week. Biliran Geothermal, Inc. (BGI) expects to spend an initial $1 million for surface exploration, $15 million for drilling and $150-$450 million for the geothermal plant. BGI is a joint venture company formed by Filtech Energy Drilling Corp. and Envent Holding Philippines, Inc. Envent’s key shareholders are Reykjavik Energy Invest and Geysir Green Energy, both based in Iceland and leaders in the renewable energy sector with focus on geothermal energy. In an E-mail, Envent Chairman Thor Gislason said BGI was established specifically to undertake upstream development activities, including exploration of geothermal areas, well field construction and extraction of steam from the area. "We are pleased to have been chosen by the Department of Energy to undertake the project in Biliran. Envent’s key shareholders have over the past decade established themselves as global leaders in the start-up of new geothermal power plants," Mr. Gislason said. The contract area has 20 to 40 megawatts of target capacity. One of the smallest provinces in the country, Biliran is just 555 square kilometers and is estimated to hold at least 100 megawatts of geothermal energy. It is home to Biliran Volcano. The National Power Corp.’s geothermal plant in Kananga, Leyte supplies the energy needed by the province through Biliran Electric Cooperative (Bileco). Bileco has energized 96% of the villages. Power supply is estimated at 3.5 megawatts, while the demand over the past few years has been a little over two megawatts. Aside from BGI, two groups of Australian and Filipino investors have also committed to develop geothermal power plants of up to 40 megawatts each in Mabini, Batangas and Compostela Valley province in Southern Mindanao. — Sarwell Q. Meniano, BusinessWorld