Yuchengco and Zobel Family's Joint Venture to Invest Up to P8.9 Billion in Maibarara Geothermal Expansion
PetroGreen Energy Corporation (PGE) and ACEN Corporation plan to invest between P6.84 billion and P8.91 billion in the Maibarara 3 geothermal power project, expanding the existing Maibarara geothermal complex in Luzon. The project aims for a capacity of 25 to 40 megawatts and will help address power shortages while reducing greenhouse gas emissions. The expansion involves drilling new wells and integrating the new plant into existing infrastructure, with operations expected to commence in 2031.
Theia Market Signal Identification - AI AssistedIn a significant move towards enhancing the Philippines' renewable energy capacity, PetroGreen Energy Corporation (PGE) and ACEN Corporation, led by the Yuchengco and Zobel families respectively, are set to invest up to P8.9 billion in the Maibarara geothermal complex. This joint venture, known as Maibarara Geothermal Inc. (MGI), is earmarking between P6.84 billion and P8.91 billion for the Maibarara 3 geothermal power project (M3GPP), which promises to bolster the Luzon grid's power generation capacity amid ongoing energy shortages.
Spanning 10.57 hectares across Batangas and Laguna, the project is projected to yield between 25 and 40 megawatts of power. This expansion builds on the existing 20-megawatt Maibarara 1 and 12-megawatt Maibarara 2 facilities, thereby enhancing the overall output of the geothermal complex. Not only does the M3GPP aim to alleviate the persistent power deficits faced by the nation, but it also stands to significantly reduce greenhouse gas emissions—geothermal plants typically emit considerably less pollution compared to coal-fired power stations of similar size.
To facilitate this expansion, the project will involve the drilling of at least four new production wells and two reinjection wells in the northern sector of the service contract area. The new plant is designed to integrate seamlessly with existing transmission lines, switching stations, and waste management systems, ensuring a cohesive operational framework.
According to MGI's latest project timeline, the procurement and drilling phases are set to commence in the third quarter of 2025, with a completion target by the second quarter of 2028. Construction is anticipated to kick off in the fourth quarter of 2027, with the plant expected to become fully operational by the third quarter of 2031.
By harnessing local renewable energy resources, this initiative promises to enhance energy security, lessen dependence on imported fossil fuels, and promote sustainable development throughout the country. PGE holds a 65 percent stake in MGI, while ACEN and PNOC Renewables Corporation possess 25 percent and 10 percent, respectively.
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