Geothermal producer Energy Development Corp. (EDC), a unit of First Gen Corp., allocated P40 billion for 2024 capital expenditures to fund its expansion and growth projects, a top executive said Monday.
“We have a mix of capex for existing operations and growth projects. Total target is around P40 billion,” EDC senior vice president and chief finance officer Erwin Avante said.
Avante said the company would spend the 2024 capex to complete its binary geothermal and battery energy storage system (BESS) projects.
The amount is higher than the P18-billion capex it allocated in 2023.
Binary projects use heat from brine, which is usually produced from the wet steam operations to generate electricity from the new power plant before re-injecting back to the reservoir.
EDC assistant vice president Allan Barcena said the company is completing its binary projects in Leyte, Sorsogon and Negros Island.
He said the company is also developing BESS projects within its geothermal sites. Barcena said offshore wind is also a prospect in the future.
“The technology for offshore wind is still is very expensive. We also need to do more technical feasibility studies,” he said.
EDC’s board approved the public offering, issuance and listing of the second tranche of the company’s shelf-registered ASEAN Green Bonds worth up P10 billion.
The company said it would use the proceeds from the bonds to cover the growth projects for 2024 and other general corporate purposes.
EDC has an installed geothermal capacity of around 1,200 MW. It was awarded two geothermal projects under the 4th Open and Competitive Selection Process (OCSP4).