A Spain-based energy company is entering the Philippines’ hydropower business sector through a tie-up with Basic Energy Corp. to help fund the latter’s existing projects, the locally listed company said in a disclosure.
Basic Energy said in its filing with the Philippine Stock Exchange on Wednesday that it has signed a Memorandum of Understanding with the Barcelona-registered From Energies International Limited for the joint development of business opportunities for its existing hydropower projects.
Currently, Basic Energy holds service contracts for four small hydropower projects—Puntian 1 and 2, Malogo 2, and Talabaan—located in Negros Occidental, with a combined capacity of 9MW. The 25-year service contracts were awarded to Basic Energy earlier this year by the Department of Energy.
“From Energies International will seek to explore and identify sources for the funding and technical expertise requirements of said projects, through its networks in the international energy business,” Basic Energy explained in its disclosure. It did not give a specific figure for the investment required.
In addition to hydropower, Basic Energy is also pursuing geothermal development.
In December last year, the DOE approved Basic Energy’s geothermal project in West Bulusan, Sorsogon. The Geothermal Renewable Energy Service Contract awarded by the DOE will allow Basic Energy to proceed with feasibility studies and further development of the West Bulusan project, which has been estimated to have an energy-producing potential of 50MW, according to the company’s website.
Prior to that, Basic Energy has also received three service contracts from the energy department for other exploration areas in Luzon, which covers three projects: the Iriga Geothermal Power Project in Camarines Sur, the Mariveles Geothermal Power Project in Bataan, and the East Mankayan Geothermal Power Project, which covers parts of Benguet, Ifugao, and Mountain Province in Northern Luzon.