PH, New Zealand to continue cooperation on geothermal energy

by Philippine Resources - November 08, 2021

Energy Secretary Alfonso Cusi (left) and New Zealand Ambassador Peter Kell (right) sign the Second Amendment to the Arrangement on Geothermal Energy Cooperation between the Philippines and New Zealand on Friday (Nov. 5, 2021) at the DOE headquarters in Taguig City. (Photo from DOE Facebook page)

The Philippines and New Zealand will continue to explore cooperation on geothermal energy.

This as Department of Energy (DOE) Secretary Alfonso Cusi and New Zealand Ambassador to the Philippines Peter Kell signed the Second Amendment to the Arrangement on Geothermal Energy Cooperation between the two countries on Friday.

Cusi said this renewed interest for cooperation is aligned with the country’s push for indigenous energy as a power source.

"We welcome the formalization of the Second Amendment to the Arrangement on Geothermal Energy Cooperation which comes at such an opportune time, considering that one of our primary goals is to revitalize the state of geothermal energy development and utilization in the Philippines," he added.

Under the agreement, there will be an exchange of best practices and technical expertise in the sector of geothermal energy.

New Zealand previously provided the country with developing geothermal fields in Tongonan, Leyte, and Southern Negros Geothermal in Negros Oriental, which are still operating.

The DOE has also liberalized the geothermal sector as the government opened it to 100-percent foreign ownership to promote new energy sources. By Kris Crismundo


Article courtesy of the Philippine News Agency

Place your Ad Here!

Related Articles


Marcelle P. Villegas - December 21, 2020

PH now allows foreign ownership of geothermal projects

By Marcelle P. Villegas Department of Energy (DoE) announced that the Philippines now allows foreign companies to fully own large-scale geothermal projects in the Philippines. This decision was made to further promote renewable energy and to shift away from coal as an energy source. [1] DoE signed the circular on the guidelines for the third Open and Competitive Selection Process (OCSP3) in the granting of renewable energy service contracts. DoE Secretary, Alfonso Cusi signed it on 20 October 2020. He stated, “From an investment perspective, OCSP3 allows for 100% foreign ownership in large-scale geothermal exploration, development and utilization projects.” Geothermal projects are considered large-scale if it has an initial investment cost of about $50 million and approved through a financial and technical assistance agreement. From CNN PH report, “The project is entered into between the Philippine government and the foreign contractors.” [1] This requires the signature of the President. The Philippine Constitution requires 60% of a public utility to be Filipino-owned. However, DoE said that 100% foreign ownership is now allowed in the renewable energy sector. In 2019, DoE also reportedly allowed foreign companies to fully operate and own biomass power plants. DoE also released a moratorium on endorsement for greenfield coal power plants for sites that have not been used for commercial development or exploration. DoE’s objective it “to further brighten the prospects of our Renewable Energy landscape”. Secretary Cusi also aims for faster implementation of the Philippines’ national renewable energy program, hopefully generating 20,000 megawatts of renewable energy by 2040. Is geothermal energy the best energy source option we have to prevent an energy crisis from happening in the future? How about solar energy? According to a recent article published by Popular Mechanics Magazine, "It's Official: Solar Is the Cheapest Electricity in History" by writer and researcher Caroline Delbert, “Solar is now the cheapest form of electricity for utility companies to build.” This is based on the report of the International Energy Agency (IEA). Although the report mentioned that the reduction in cost of solar energy is based on the risk-reducing financial policies around the world, “it applies to locations with both the most favorable policies and the easiest to access to financing.” “IEA’s recommendations include similar projections and calculations for all renewables as well as nuclear.” Moreover, IEA forecasts that solar energy is well positioned to blow up in the next 10 years, “because right now it is in the sweet spot to lower cost and increasing availability… And while the news is very good for solar [power], it is still pretty good for all the other renewables as well as nuclear, the IEA says.” Why is solar power lower in cost of capital? According to Delbert, it depends on many factors. For renewable energy, she wrote, “There are a few low-hanging factors… As people and companies see more successful projects like Elon Musk’s South Australia solar battery farm, their investment confidence grows.” How did this year’s COVID-19 pandemic affect the global development of renewable energy? Last May 2020, IEA gave a market update and analysis on the impact of COVID-19 on renewable energy deployment in 2020 and 2021. They reported that “COVID-19 crisis is hurting but not halting global renewable energy growth.” “Half a year later, the pandemic continues to affect the global economy and daily life. However, renewable markets, especially electricity-generating technologies, have already shown their resilience to the crisis.” As a review of IEA’s analysis for 2020, they reported that global geothermal capacity additions are projected to amount to 0.3 GW in 2020, which is one-third of 2019’s level, which was the highest ever recorded. [3] “This year, Indonesia is again expected to lead new development, with 145 MV of capacity added (90 MV from the Rantau Dedap plant and 45 MW at the Sorik Marapi plant), followed by Turkey (+70 MV). These two countries are expected to account for more than two-thirds of new capacity additions in 2020, while the Philippines, the United States and Bolivia are responsible for most of the rest.” IEA also noted that this year, due to the COVID-19 crisis, a number of projects have been delayed by disruptions to the global supply chain for machinery and materials and by deferrals of strategic decisions, such as decisions in financing. In effect, several small and medium-sized projects originally scheduled to come online in 2020 are expected to be commissioned in 2021 instead. [3] In Turkey, the 10-year FiT scheme for new plants (originally scheduled to end at the end of 2020) has been extended until mid-2021 in order to cover projects affected by delays caused by the pandemic. (FiT or FIT refers to feed-in tariff. It is a policy mechanism designed to encourage and speed up investment in renewable energy technologies by offering long-term contracts to the producers of renewable energy.) “Global cumulative geothermal capacity is forecast to increase 7% to 16.5 GW by 2022, with Indonesia, Kenya, Turkey and the Philippines responsible for two-thirds of this growth.” IEA also reported that in Indonesia, the state-owned company PT Geo Dipa Energi (GDE) has received a USD 300-million loan from the Asian Development Bank for the 110-MW expansion of the Dieng and Patuha plants, expected to be carried out during 2020 – 2023. “Beyond 2022, Indonesia, Kenya and Turkey continue to lead capacity additions, which are projected to exceed 0.8 GW per year globally on average.” “The Indonesian government recently prepared a roadmap for geothermal energy, with the goal of having 8 GW of installed capacity by 2030 (up from 2.1 GW in 2019). However, wider exploitation of the country’s considerable geothermal potential will require the resolution of a number of challenges, including low energy prices, limited local electricity demand, a lack of capital investments, and environmental and social issues.” [3] In relation to this, the Indonesian government plans to conduct exploration and drilling in 20 geothermal areas during 2020 until 2024. Their view is to reduce development risks for future auction plans. They are also focusing on coming up with policies with the objective of providing better economic incentives to geothermal projects. If Indonesia overcomes the obstacles, they could match up with the accumulated installed capacity of the United States by 2025. In conclusion, IEA said that geothermal power is also receiving greater interest from oil companies. Most oil companies are open to opportunities to diversify their activities while capitalizing on their drilling expertise. [3] The International Energy Agency is an autonomous intergovernmental organization that is based in Paris, France. It was established in the framework of the Organization for Economic Co-operation and Development (OECD) in 1974 in the wake of the 1973 oil crisis. IEA is a reliable source of information and statistics about the international oil market and other energy sectors. IEA also acts as a policy adviser to its member countries and also with non-member countries like China, India and Russia. IEA’s mandate is focused on effective energy policies related with energy security, economic development and environmental protection. The Agency also promotes alternate energy sources such as renewable energy. Reference: [1] CNN Philippines Staff (27 October 2020). CNN Philippines. “PH now allows 100% foreign ownership in large-scale geothermal projects”. Retrieved from - [2] Delbert, Caroline (22 October 2020). Popular Mechanics. "It's Official: Solar Is the Cheapest Electricity in History". Retrieved from - [3] International Energy Agency website. Retrieved from - and Geothermal abstract Photo source: Philippine Geothermal Production Company, Inc. -

Place your Ad Here!

Place your Ad Here!

Recent Articles


Philippine Resources - August 05, 2022


Photo Credit: Arrow Creatives Nickel Asia Corporation, the Philippines’ largest producer of lateritic nickel ore, reported a 41-percent increase in attributable net income for the first semester this year. Based on unaudited financial and operating results for the six-month period ended June 30, 2022, attributable net income increased to P3.83 billion from P2.73 billion while earnings before interest, tax, depreciation, and amortization (EBITDA) increased by 19 percent to P6.33 billion from P5.32 billion the year prior. Despite lower ore volume sold during the period, revenues increased by 7 percent to P11.78 billion from P11.01 billion last year, owed largely to higher nickel ore prices and favorable exchange rates. NAC’s four operating mines sold a combined 6.95 million wet metric tons (WMT) of nickel ore during the first half of the year, down 16 percent from 8.30 million WMT in the same period last year. The drop in sales volume was almost in direct proportion to unrealized workable days caused by inclement weather that adversely affected the Company’s mining operations during the period. The weighted average nickel ore sales price over the first half of year 2022 rose by 18 percent to $30.03 per WMT against $25.54 per WMT in the same period last year. The Company also realized P52.56 per US dollar from these nickel ore sales, a 9-percent increase from P48.25 last year. Breaking down the ore sales, the Company exported 3.12 million WMT of saprolite and limonite ore at the average price of $42.05 per WMT during the six-month period compared to 4.55 million WMT at $37.62 per WMT in the same period last year. Likewise, the Company delivered 3.83 million WMT of limonite ore to the Coral Bay and Taganito high-pressure acid leach (HPAL) plants, the prices of which are linked to the London Metal Exchange (LME) and realized an average price of $12.52 per pound of payable nickel. This compares to 3.74 million WMT at $7.92 per pound of payable nickel in 2021. Expressed in US dollar per WMT, the average price for the deliveries to the HPAL plants were $20.23 and $10.85 in the first half of 2022 and 2021, respectively. “The first half of 2022 was not without its challenges especially for our mining operations, brought about by weather conditions at our mine sites, particularly in Surigao, and continuing lockdowns in China, our major market,” said Martin Antonio G. Zamora, President and CEO. "However, the higher LME nickel price and stronger US dollar tempered the impact on our revenues.” Owing to the higher LME nickel price during the period, NAC also recognized gains from its equity share in investments in the two HPAL plants in the combined amount of P1.09 billion against P244.1 million year-on-year. The stronger US dollar further enabled NAC to log a 353-percent hike in net foreign exchange gains from its foreign currency-denominated net financial assets to P863.5 million from P190.6 million the year prior. Total operating cash costs decreased by 2 percent year-on-year to P5.19 billion from P5.32 billion last year. On a per-WMT sold basis, total operating cash costs increased to P747 per WMT compared to P641 per WMT in 2021. For the Company’s renewable energy business, its subsidiary, Emerging Power, Inc. (EPI) energized in June 2022 another 38-megawatt (MW) solar farm in Subic, Zambales, bringing total capacity on this site to 100MW. For 2022, the Subic plant has been operating at an 18- 19% plant efficiency factor with 90% of generation contracted under power sales agreements. EPI has realized an average tariff of P4.65 per kilowatt hour. EPI has another 100MW service contract for the Subic site and will commence construction of a 68-MW farm in August. Completion is expected by the third quarter of next year. EPI was also chosen by Shell Overseas Investments B.V. to be its exclusive local partner in a solar, onshore wind, and battery storage joint venture that aims to contribute up to 3GW into the Philippines’ renewable capacity. NAC is evaluating a range of financing alternatives including accessing global debt capital markets to raise EPI’s share of the equity required for an initial 1GW target by 2028, among other uses. The Company’s strong financial position will allow it to be opportunistic in evaluating funding options that meet the primary objective of maintaining a flexible low-cost capital structure. “We remain confident that our mining and renewable energy businesses provide a solid foundation on which to realize the OneNAC Vision’s twin objectives, which is to become the premier ESG investment in the country and to be counted among the Top 25 PSE-listed companies in terms of market capitalization by 2025,” said Zamora.   Article courtesy of the Philippine Stock Exchange


Philippine Resources - August 04, 2022

Further shallow copper mineralisation identified at MCB

Figure 3. Cross section of drill hole MCB-039 relative to the interpreted geology and significant assay results. We (Celsius Resources) are pleased to announce we have received further shallow and high-grade copper assay results from the ongoing drilling program at our flagship MCB copper-gold project, held under our Philippine subsidiary Makilala Mining Company, Inc. (“MMCI”).  The results continue to identify new positions of shallow mineralisation which are in line with other recent drilling results from holes MCB-036, MCB-037 and MCB-038 (see CLA announcements dated 13 December 2021, 23 May 2022 and 4 July 2022 respectively) confirming the presence of an extensive shallow higher-grade position.  The results from MCB-039 were designed to further expand the size of the shallow higher-grade copper zones which are considered to have an important positive impact on early mining options at MCB. The current drill hole in progress (MCB-040) is similarly designed to further expand the higher-grade copper mineralisation leading to potential improvements to the economics of the already positive Scoping Study at MCB as reported by Celsius on 1 December 2021. “The results from MCB are continuing to grow the size of the shallow higher-grade copper zones,” said Country Operations Director, Peter Hume. “We are getting much better definition now on the various high-grade zones, which are important for the optimisation of the MCB mine plan. We can see many good high-grade intersections coming together to expand on the earlier understanding of these high-grade zones. Where we get multiple high-grade zones staked on top of each other, we can achieve outstanding results, as recently announced from hole MCB-038 which intersected 611.4m @ 1.39% copper and 0.75g/t gold from 32.5m.” RESULTS FROM MCB-039 Drill hole MCB-039 was drilled to further confirm the interpretation that further shallow high-grade positions exist as a relatively flat body extending into the surrounding host rocks (see Figures 2 and 3). This drill hole was more specifically targeted to fill a gap in the drilling information where there was previously defined lower grade copper mineralisation. The results from MCB-039 have confirmed the further extensions to the higher-grade copper mineralisation as part of a series of relatively flat lying, high-grade zones which are extending away from vertically orientated feeder structures which are all closely related to an intrusive Tonalite rock (Figure 3). Figure 2. Location of MCB-039 drill hole relative to recent and historical diamond drilling at MCB.​​​​​ A large broader envelope of copper mineralisation at a lower cut-off grade at approximately 0.2% copper also continues to be better defined, highlighting the very large scale of the copper-gold mineralisation at the MCB deposit. Table 1: Significant intersections from drill holes MCB-039.   Article courtesy of Celsius Resources. Full press release can be found HERE


Philippine Resources - August 04, 2022

Diokno banks on mining for sustained economic recovery, expansion

Photo credit: PNA - Finance Secretary Benjamin Diokno Finance Secretary Benjamin Diokno said the mining industry is a potential source of sustained economic growth as he underscored the benefit of mobilizing investments for mine development. “The mining industry holds the greatest potential to be a key driver in our economic recovery and long-term growth, especially now that world metal prices are high. The Philippines, after all, is one of the world’s most richly endowed countries in terms of mineral resources,” he said Wednesday at the listing of Philex Mining Corporation’s (Philex) common shares in the Philippine Stock Exchange (PSE). Philex is mobilizing investments for the development of its Silangan underground copper-gold mine in Surigao del Norte. In a disclosure to the PSE, the company said it is offering a maximum of 842 million common shares at the rate of one offer share for every 5.8674 shares owned for PHP3.15 each to raise a total of PHP2.652 billion new equity. The stocks rights offering (SRO) period started on July 12, 2022 and ended July 25, 2022. The Silangan project, considered one of the biggest copper-gold mines in the country, is planned to be mined in two phases. The first phase has a mineable ore reserve of 81 million metric tonnes which will be mined for 22 years at a rate of 4 million tonnes per year. The mine is targeted to commence commercial operations in the first quarter of 2025. Diokno said Philex’ SRO listing demonstrates the mining industry’s confidence in the country’s promising economic growth prospects.   He said the offering means more jobs will be created, local economies will be reinvigorated, and additional revenues will be contributed to the government.  The Department of Finance (DOF) estimates that the project will generate around PHP8.5 billion in excise taxes alone for its entire mine life. Diokno said the listing sends a strong signal to the mining industry that the country's capital markets are viable instruments for fast tracking the development of large mining projects.   He said the Marcos administration is committed to continue creating an enabling environment for mining activities to flourish in the country as he looks forward to similar listings in the future. “We recognize that apart from boosting local development, mining is a strong magnet for investments that can propel our economy into a higher growth trajectory,” he added. Diokno said the government expects the mining industry to strictly adhere to responsible and sustainable mining practices.  He said the mining industry should strike a balance between protecting the environment, uplifting local communities, and supporting the government’s socioeconomic agenda. “This is a non-negotiable condition so we can guarantee the sustainability of the industry and the strong economic growth of its host communities,” he said.    Article courtesy of the Philippine News Agency

Place your Ad Here!

Join the Philippines'

Mining and Construction Community

Be the "First" to get our exclusive Digital Magazine & Newsletter.