Nickel Asia sets $2-M capex per MW for pilot geothermal projects

NICKEL ASIA Corp.’s (NAC) renewable energy subsidiary is allocating approximately $2 million per megawatt (MW) as a capital expenditure (capex) budget for its pilot geothermal power plants in Biliran and Mindoro.

“Capex, I think… about $2 million per megawatt is our current estimate,” Emerging Power, Inc. (EPI) Chief Operating Officer Noel M. Gonzales said during a briefing on Tuesday.

EPI is currently conducting discharge testing for the 2-MW Biliran Geothermal project, which is projected to begin commercial operations by the fourth quarter of this year.

The first phase of the Mindoro geothermal power plant is scheduled to commence operations by the second quarter of 2025.

“Currently, we don’t plan to participate in GEAP (green energy auction program) for now but it is a pilot program to fully test… show, at least in Biliran, that it can support two megawatts worth of power,” he said.

Upon completion, the pilot operations could be expanded to achieve an additional 20 MW or potentially 50 MW through further drilling works.

“With regards to future expansions, we are looking into that and we’ll be looking at fully testing the other existing wells that are in Biliran,” Mr. Gonzales said.

In January, NAC’s board of directors approved an additional investment of P2.92 billion in EPI through a subscription to more common shares. This will support EPI’s operations, cover the operating expenses of its affiliate, Biliran Geothermal, Inc., and provide for the operating expenses of its unit, Mindoro Power Corp.

For the three months ending in June, NAC reported an attributable income of P776.70 million, marking a 72% decrease from P2.78 billion the previous year, mainly due to lower revenues and higher expenses.

Revenues saw a decline of 14.90% to P6.88 million, while gross expenses increased by 9.37% to P4.77 million.

On Thursday, NAC shares dropped by 45 centavos or 7.88%, closing at P5.26. — Sheldeen Joy Talavera