Philippines Remains Second-Largest Producer of Geothermal Energy

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Researched by Industrial Info Resources (Sugar Land, Texas)--About 11,000 megawatts (MW) of geothermal power are produced in 28 countries. Geothermal energy is considered a sustainable energy and is clean, reliable, and cost-effective. Since geothermal has been harnessed for electricity generation, plants have been primarily located around the Pacific Rim's Ring of Fire and other areas with significant tectonic boundaries. Although advances in technology have made access in less favorable regions possible, the massive amount of tectonic activity in the Pacific Rim provides developers with straightforward access to power sources. Because of their minimal fuel usage, geothermal plants are relatively immune to the fluctuations in the prices of fossil fuels.

The Philippines is the largest consumer of geothermal energy in Asia and is the world's second-largest producer, behind the United States. The Philippines has almost 2,000 MW of geothermal capacity linked to regional grids. Geothermal energy represents about 27% of the country's total electricity production and has the potential to produce at least another 600 MW. Basic Energy Corporation (PSE:BSC) (Makati, Philippines), which has been responsible for the majority of petroleum development in the country since 1978 under the name Basic Petroleum Corporation, is beginning to move into the geothermal industry. Basic Energy submitted bid documents for the Mabini geothermal project to the Philippines' Department of Energy (DoE) in May 2007 and was awarded the project in July 2008.

After receiving approval from the DoE, Basic Energy began conducting geophysical and geological surveys of more than 60 prospective sites on the Mabini Peninsula, which is about 100 kilometers south of Manila. Basic Energy concluded surveys earlier in the year and selected a site based on existing infrastructure, proximity to transmissions lines and local demand. Pleistocene volcanics at the site were deemed optimal for direct utilization in binary production. Construction on the $60 million Mabini power station is expected to begin next year and should be wrapped up by mid-2013, assuming everything moves according to schedule. Basic Energy is expecting the new power station to generate about 20 MW for the local grid.

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