EDC starts P1.3 billion expansion of BacMan geothermal plant, First Balfour bags EPC contract

Jan 15, 2021

MANILA, Philippines — Lopez-led Energy Development Corp. (EDC) has kicked off the construction of the P1.3-billion expansion of the Bacon-Manito (BacMan) geothermal power plant.

EDC has awarded the engineering, procurement and construction (EPC) contract for the 23-megawatt (MW) Palayan Binary Balance of Plant (BOP) work package to construction firm First Balfour Inc., also a Lopez firm.

The contract covers the installation of equipment necessary to generate energy using the residual brine flow from the existing EDC steam field.

It also includes EPC works for the civil, structural, and electromechanical works to complete the binary power plant, which is in the municipality of Manito in Albay.

“It was in 2018 when we first started discussing this prospect with EDC and original equipment manufacturers (OEM). But with the persistence of the tender team and the full support of our management, we were able to win this project despite limitations caused by community quarantine protocols,” First Balfour Business Development manager Joram San Luis said.

The Palayan Binary Plant, targeted to be completed in 2022, will boost the overall power generation capacity of the existing BacMan geothermal power plant.

The BacMan plant is composed of the 120-MW BacMan I and 20-MW BacMan II.

First Balfour said the project is expected to boost the region’s local economy as 70 percent of its target total manpower will be sourced from the provinces of Albay and Sorsogon.

After the BOP work package, two more related work packages namely the fluid collection reinjection system which will transport the steam from the existing EDC facility to this Binary Plant and the Connection Assets Works Package which will connect the plant to the electricity grid – will follow.

Last year, EDC president and CEO Richard Tantoco said the company is working on binary geothermal projects to expand its existing capacity particularly in BacMan, in Leyte and Mt. Apo.

He said these projects could yield an additional 80 MW in capacity.

In Leyte, the company owns and operates the 112.5-megawatt (MW) Tongonan, 180-MW Mahanagdong, 125-MW Upper Mahiao and 232.5-MW Malitbog geothermal projects.

EDC recently bagged awards from the Safety and Health Association of the Philippines Energy Sector Inc. (SHAPES) awards in partnership with the Department of Energy (DOE).

It took home seven corporate awards and five individual awards from the recently concluded 16th Energy, Safety, Health, and Environment Conference following its exceptional health and safety performance in the workplace.

EDC’s geothermal sites in BacMan and Leyte won the gold award for 10 million man-hours without lost time accident (LTA) while its geothermal site in Mt. Apo was awarded the bronze award for three million man-hours without LTA.

SHAPES’ gold award was also given to EDC’s wind power facility in Ilocos Norte.

EDC generates over 40 percent of the Philippines’ renewable energy output and serves about 10 percent of the country’s overall electricity demand with its installed capacity of over 1,500 MW.

It has a geothermal portfolio of over 1,200MW, which accounts for 62 percent of the country’s total installed geothermal capacity, putting the Philippines on the map as the world’s third largest geothermal power producer.