EDC, Canadian firm secure JV for geothermal projects
MANILA, Philippines - Lopez-led power firm Energy Development Corp. (EDC) and Canadian energy company Alterra Power Corp. signed a Joint Venture Agreement (JV) to develop geothermal projects in South America.
In a disclosure submitted to the Philippine Stock Exchange (PSE) on Monday, May 20, EDC said the joint venture agreement with Alterra Power will cover geothermal projects in Chile and Peru.
"(The agreement will cover) the Mariposa Project in Chile and three (3) geothermal projects located in Peru, namely Tutupaca, Loricosta and Crucero," the disclosure said.
The agreement, according to the disclosure, "sets the framework and main commercial principles for EDC's potential acquisition of a 70% interest in each of the four (4) projects."
In 2012, EDC had the choice of taking over the geothermal projects in the two South American countries if they are willing to pay for the project's past development cost under an initial agreement with Alterra.
The current agreement and transaction, however, is still subject to the preparation of fully termed documentation and necessary regulatory approvals, according to the disclosure.
EDC, a pioneer in the geothermal energy industry, currently has more than 1,400 megawatts (MW) of capacity under its green power portfolio. - Rappler.com