A company owned by Envent, the daughter company of Geysir Green Energy (GGE) and Reykjavík Energy Invest (REI), was yesterday granted permission for energy research and harnessing in a geothermal area in Biliran, a province in the Philippines.
If everything goes according to plan, a power plant will be constructed capable of producing about 100 megawatts of electricity, Morgunbladid reports.
“This is very good news,” said CEO of GGE Ásgeir Magnússon. “This agreement confirms the intent of Filipino authorities to work with us and it is certainly a step towards constructing a power plant in the region.”
Magnússon believes further research in the area will take two or three years. Next year surface research will be undertaken and if results look promising experimental holes will be drilled.
The decision to invest in this project and found Envent as the daughter company of GGE and REI was made while the so-called 100-day majority was at the helm in Reykjavík City Council. REI is owned by Reykjavík City.
Funds for surface research were contributed, which is expected to cost roughly USD 800,000 (EUR 508,000). Further funds are required for experimental drilling; USD 15 or 16 million (EUR 9.5 or 10 million).
It is uncertain whether REI, which has caused heated debates in Reykjavík City Council, will continue to invest in the project or whether other investors will be needed to complete it.
Envent was founded specifically for energy research in the Philippines and investigating the feasibility of establishing geothermal power plants in the archipelago.
Envent then founded Biliran Geothermal Inc. around the Biliran energy project. The company is owned by a local Philippine company (60 percent) and by Envent (40 percent).