DOE pushes for 2025 launch of geothermal de-risking

FILE PHOTO: Department of Energy (DOE) facade. Images from DOE / INQUIRER FILES

MANILA, Philippines — The Department of Energy (DOE) remains keen on launching a multi-million dollar facility meant to de-risk projects for geothermal companies. This, despite the planned changes in the DOE’s leadership mid-year.

Mylene Capongcol, director of the DOE’s Renewable Energy Management Bureau, said the agency was still on course to make the facility operational this year.

“We are targeting [to have it done the] soonest,” the official said.

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Capongcol, however, noted that the program has a loan component. Thus, the DOE needs to obtain approval from the Investment Coordination Committee of the Department of Economy, Planning and Development.

The DOE hopes to secure a credit facility from the Asian Development Bank, which could reach $250 million. This is an initial amount eyed to energize the platform.

The DOE official earlier said they were in talks with the state-run Land Bank of the Philippines for the possibility of managing the proposed geothermal resource de-risking facility (GRDF).

GRDF is envisioned to cost-share exploration drilling with qualified developers. This is in order to avoid risks related to the pre-development stage of geothermal resources.

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Under the program, the government can shoulder up to 50 percent of developers’ initial expenses. These usually cover the exploration and drilling activities, which are considered the riskiest and most capital-intensive.

Industry sources earlier said a company would need to shell out P1.5 billion to P2 billion for the first two geothermal wells. The estimates do not even cover the surface study and 3D seismic survey.