Aragorn Power and Energy Corp. (APEC)
Aragorn Power and Energy Corporation (APEC)
APEC is still on the pre-operating stage. It was established to engage in energy resource exploration and development.
Kalinga Apayao Geothermal Service Contract.
In 2008, APEC was granted a Geothermal Service Contract (GSC) by the Department of Energy (DOE) located in the Province of Kalinga. The GSC was granted after a Certificate Precondition (CP) from the National Commission of Indigenous People (NCIP), covering a major portion of the geothermal service area, was secured. The GSC was converted into a Geothermal Renewable Energy Service Contract (RESC) in late March 2010 to avail of the incentives provided under the Renewable Energy Act (RE) of 2008. As at March 27, 2015, the consent of nine (9) out of eleven (11) ancestral domains has been secured covering 85% of the geothermal service contract area.
In November 2010, APEC and its partner Guidance Management Corporation (GMC) formed a partnership with Chevron Geothermal Philippines Holdings, Inc. (Chevron) in developing the geothermal area in November 2010. The parties signed a Farm-out Agreement which gives APEC and GMC the option to take an equity position of up to 40% in the geothermal project. The parties also signed a Joint Operating Agreement. Under the agreement, Chevron will be responsible for the exploration, development and operation of the steam field and power activities. The effectivity of the two agreements hinges on the approval by the government of the application for a Financial and Technical Assistance Agreement (FTAA).Under the Renewable Energy (RE) Act of 2008, a foreign company can own majority interest in an RE company provided the Service Contract is converted into an FTAA. The application for an FTAA has been filed with the DOE.
The project involves the development of steam fields that can generate around 100 megawatts (MW) of new capacity, providing an additional source of clean, indigenous and reliable base load power to the Luzon grid. A 100 MW geothermal project will approximately cost US$300 million. This GRESC will be the first major international investment in the country under the Renewable Energy Act of 2008.
As at December 31, 2014, APEC accomplished exploration activities that include Geological and Geochemical surveys and the Magneto Telluric Geophysical survey has been completed. Community development projects were also undertaken in the various ancestral domains.
Sub-Phase 3 (Drilling of Exploratory wells) of the exploration work program will be done in 2016. The exploration wells will take about six months to complete. If the results of the exploration wells prove positive, construction of the power plant will follow.
In September 2015, the DOE approved a one (1) year extension of the term of Geothermal Service Contract.