ENERGY Development Corp. (EDC) has signed an engineering, procurement and construction (EPC) contract with Hyundai Engineering Co., Ltd. (HEC) for its 31-megawatt (MW) Bacon-Manito (BacMan) 3 geothermal power plant project.
The Lopez-led firm signed an engineering and design contract with Hyundai Engineering and a construction services contract with HEC affiliate Galing Power & Energy Construction Co. Inc.
HEC is an international engineering, procurement and construction contractor based in South Korea.
The Bac-Man 3 geothermal power plant is located in Barangays Capuy, Bucalbucan, Rizal and Bulabog, Sorsogon City, Sorsogon Province.
The project has an estimated project cost of P7.6 billion and is targeted to be completed and operational by the last quarter of 2017.
Vincent Villegas, EDC Business Development vice president, said that given its specifications, the Bac-Man 3 power plant is expected to withstand harsh weather conditions and improve plant reliability.
“Once operational, the Bac-Man 3 project will augment the power generating capacity of the Luzon grid and address the projected demand growth in the region with clean and affordable power,” said Villegas.
HEC Power and Energy head Park Jun Sung welcomed the signing.
“This project is meaningful to HEC since we will be focusing largely on renewables as one of our strategic businesses in the future,” said Sung.
The Bac-Man 3 project will reduce greenhouse gas emissions by about 270 kilotons of carbon dioxide (CO2) annually if a similar capacity of fossil-fired power plant were to be built.
The addition of Bac-Man 3 project to EDC’s geothermal portfolio solidifies its leadership in the Philippine geothermal industry.
EDC owns and operates 1,169 megawatts of integrated geothermal projects in Leyte, Negros Islands, Bicol and North Cotabato.
It also successfully commissioned the 150 MW Burgos wind project, the largest in Southeast Asia. Besides geothermal and wind, EDC also operates hydropower and solar energy plants.