Nov 25 2010
Aragorn Power and Energy, subsidiary of APC Group Philippines, has contracted two accords with Chevron Kalinga, subsidiary company of Chevron, a renowned geothermal power generating company for building a geothermal power project valued around $300 million.
Both the companies will be jointly involved in exploring and developing a geothermal project in the steam fields of the country to produce around 100 MW of renewable energy. The power generated from the steam field will be linked to the power grid of Luzon, the main island of the country.
Aragorn Power has signed a contract with the Philippines government and received a permit to explore geothermal potential in over 26,000 hectares of land in Kalinga province located in the northern Philippines. The company informed the stock exchange of the nation that it has also signed a sub-contract agreement with Chevron with an option to buy up to 40% equity in the geothermal project.
According to APC, the current geothermal project would remain the foremost overseas investment in any renewable energy project since 2008, when the renewable energy act of the country was formulated.