DOE extends Aragorn geothermal contract for another year

The Department of Energy has granted the extension of Aragorn Power and Energy Corporation's geothermal renewable energy service contract (GRESC) to operate its Kalinga project for another year, Aragorn's parent company APC Group announced Thursday. "The extension, which is allowed under the provisions of the GRESC, was granted to finalize the pre-development stage activities necessary for the evaluation of the geothermal resource," APC said in its disclosure to the Philippine Stock Exchange. The 26,000-hectare area in Kalinga owned by Aragorn and partner Guidance Management Corp. has an estimated power generation potential of 120 to 200 megawatts. The DOE granted them the five-year contract in 2008. Aragorn and Chevron Geothermal Philippines subsidiary Chevron Kalinga signed a farm-in agreement in 2010 for the Kalinga project. The latter will operate the power plant and explore and develop the steam field. The APC Group's investments include energy and mining businesses. It is 46.59-percent owned by another publicly listed company, Belle Corporation. Guidance Management Corp. is a consortium of 14 investors from the Philippines, Australia, Spain and the US. Chevron is part of the global Chevron Group of Companies. — BM, GMA News