Maibarara Geothermal Power Project Gets CDM Approval

May 15, 2013

The Secretariat of the United Nations Framework Convention on Climate Change (UNFCCC) confirmed that the Maibarara Geothermal Power Project has been registered effective December 26, 2012 as a Clean Development Mechanism (CDM) activity under the Kyoto Protocol. Maibarara Geothermal, Inc. (MGI) is expected to put the 20MW geothermal power facility in Sto Tomas, Batangas on commercial operations by late 2013. MGI is a joint-venture company owned 65% by PetroGreen Energy Corp., a 100% subsidiary of publicly-listed PetroEnergy Resources Corp. and 25% and 10% by Trans-Asia Oil & Energy Development Corp. and PNOC-Renewables Corp., respectively.

MGI President F.G. Delfin Jr. declared, “We are pleased to obtain UN approval for the CDM registration of our Maibarara geothermal power project as carbon credits will supplement MGI’s revenue from electricity sales. Our registration was handled by the independent validator AENOR (Asociación Española de Normalización y Certificación) of Spain and by Endesa Carbono who prepared the project design document.  Their joint efforts allowed MGI’s CDM registration submission to meet the December 2012 deadline under the Kyoto Protocol framework.”

DOE Renewable Energy Management (REMB) Bureau Director Mario C. Marasigan said, “DOE commends our service contractor MGI in reaching yet another milestone with the UN approval of Maibarara’s CDM registration.  The operation of the project’s first 20MW unit is expected to reduce greenhouse gas emissions between 71,000 and 76,000 tons of carbon dioxide equivalent per year, thus contributing to the global efforts of mitigating man-induced global warming and climate change. Just as important, MGI’s application for the facility’s Certificate of Compliance filed with the Energy Regulatory Commission (ERC) last April is a critical step towards eventual commercial operation this year. Given that Maibarara is a government-contracted power project, DOE-REMB will coordinate with ERC and other agencies to ensure that government permits are released in a timely fashion so that Maibarara can supply much needed additional power to the Luzon grid this year.”

Delfin added that due to CDM facility protocol, MGI expects to verify and sell its first tranche of carbon credits by early 2015, after a full-year of power plant operation.  MGI will sell the Maibarara carbon credits to Endesa Carbono S.L. by virtue of a Certified Emission Purchase Agreement that the two firms signed on January 31, 2011.

MGI is nearing the completion of construction works for the 20MW geothermal power facility, the first geothermal power project under the current Aquino administration and the first RE project under the 2008 RE Law declared commercial by the DOE. MGI’s contractors’ Fuji Electric of Japan and EEI Corp. started the installation of the major plant equipment such as turbine, generator, condenser, etc last May 2, 2013.  The power plant is expected to be ready for initial tests by the first week of July, for full commissioning tests by September, and for commercial operations by late 2013.