First Deal Commits 10 Percent of Capacity
On Wednesday June 10, 2009, 11:12 am EDT
MANILA, PHILIPPINES–(MARKET WIRE)–Jun 10, 2009 — Envent, a major geothermal developer in the Philippines, today announced the signing of a Power Purchase Agreement (PPA) with the Biliran Electric Cooperative (BILECO) for about 8,600 MWh per year of clean, renewable electricity at a levelized price of $94 per MWh. The total value over the 10-year term is about USD 47 million. The baseload electricity will come from Envent’s 50 MW Biliran Unit 1 geothermal power plant, which is scheduled to come online in 2012 on the Biliran Island in the Philippines.
The agreement is the first in a line of PPAs to be executed with several electric cooperatives in the Leyte region. This agreement commits about 10 percent of capability of the Unit 1 geothermal power plant. The remaining capacity is 45 MW. Envent expects to enter into additional PPAs for a total value of USD 515 million in the coming months.
Envent’s Biliran Unit 1 project is located on the island of Biliran in the Eastern Visayas region of the Philippines. Biliran, which has a good connection to the national power grid, lies just a few kilometers north of the island of Leyte. The upstream part of Envent’s Biliran Unit 1 project is being executed in collaboration with Biliran Geothermal Incorporated and several other local companies.
Envent is a renewable energy business dedicated to the exploration of geothermal resources in the Philippines as well as to the development of geothermal power plants in the region. Envent’s majority owner is Geysir Green Energy; Reykjavik Energy Invest is a co-shareholder. Both companies are based in Iceland.
Mr. Gudmundur F. Sigurjonsson, Chief Executive Officer, Envent:
“The execution of this PPA reflects the good spirit of cooperation between Envent and the local electric cooperatives in the Leyte area. This is a significant milestone in the development of our Biliran Unit 1 project and an important steppingstone as the corporation moves forward with its plans. Parallel to working on completing more PPAs we will be working on the financial structure of the project, which we expect will take between 6 and 12 months.”
Envent (http://www.envent-power.com) is a renewable energy business dedicated to the exploration of geothermal resources in the Philippines as well as to the development of geothermal power plants in the region. Envent is currently working on several geothermal projects and is committed to contributing to the Philippine government’s target of adding 1,200 MW of renewable power capacity by 2013. Envent’s key shareholder is Geysir Green Energy, a global leader in the development of geothermal energy. Geysir’s co-shareholder is Reykjavik Energy Invest. Both companies are based in Iceland, where an impressive 100 percent of the power capacity is derived from renewable sources (23 percent geothermal and 77 percent hydro).
About Geysir Green Energy
Geysir Green Energy (http://www.geysirgreenenergy.com), the global geothermal company, is a leading developer and investor in the geothermal renewable energy industry. Since its founding in January 2007, Geysir has invested around USD 650 million in geothermal businesses and projects around the world. Building on the extensive experience from the Icelandic geothermal arena, Geysir has received significant attention within the industry and is being recognized as a serious and dynamic player in the field.
About Reykjavik Energy Invest
Reykjavik Energy Invest (REI, http://www.rei.is) is Reykjavik Energy’s (Orkuveita Reykjavikur, www.or.is) international business development and investment arm. Reykjavik Energy is a geothermal power generation business providing the Iceland capital region with power and multi-utility services.
For further information, contact:
Gudmundur F. Sigurjonsson
President & CEO
Envent Holding Philippines
Phone +354 8494960
e-mail: Email Contact