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Chile and Peru project deals boost power firm’s geothermal global expansion plan

Philippines firm acquires 70 per cent stake in four geothermal projects

EDC’S Southern Negros geothermal production field
EDC’S Southern Negros geothermal production field

Philippines geothermal power producer Energy Development Corporation (EDC) has acquired a 70 per cent stake in four geothermal projects in Chile and Peru. Under the deal, first mooted in December, the firm is forming a joint venture with Australia’s Hot Rock Limited (HRL) to co-develop the Calerias and Longavi projects in Chile, and the Quellaapacheta and Chocopata projects in Peru with EDC obtaining a 70 per cent interest in each of the projects.

In December the two companies signed a conditional agreement for the venture, subject to usual due diligence procedures, which have now been completed.

EDC chairman and chief executive officer Federico Lopez, said: “We are pleased with the speedy conclusion of the negotiations with HRL as we now look forward to starting exploration work in what we view as attractive geothermal concessions in both Chile and Peru.” HRL had acquired 23 geothermal tenements across Chile, Peru and Australia.

“The company has been among the first to identify and obtain some of the most attractive concession areas in Latin America,” said EDC. As one of the world’s largest integrated geothermal power producers, EDC, in partnership with HRL, now seeks to accelerate the development of the projects. It is also “looking at the possibility of expanding the scope of partnership by including HRL’s other sites”, the firm said.

The news follows the recent confirmation by the Chilean energy ministry that EDC has been awarded exclusive development rights for the Newen, San Rafael and Batea geothermal exploration concession areas. EDC plans to deploy a full team of geothermal scientists to Chile this month to start development activities on the joint venture projects and the EDC granted projects.

As part of its global expansion plans, EDC has submitted 13 applications for geothermal concessions in Chile and is looking at opportunities in Indonesia and Kenya.

“The acquisition of these concessions in Latin America are the first steps in realising our vision to establish a global presence and further solidify our position as the pre-eminent international leader in geothermal power development,” Lopez said.

The company currently operates and maintains a portfolio of geothermal power plants with a combined capacity of 1130MW.