News Releases 2023

Aug. 03, 2023

JGC Awarded Contract for Binary Geothermal Power Generation Project in the Philippines

Yokohama, Japan- JGC Holdings Corporation (Representative Director, Chairman and Chief Executive Officer: Masayuki Sato) announced today that JGC Philippines, Inc. (JGC Philippines) has been awarded the Engineering, Procurement and Construction (EPC) contract from Energy Development Corporation (EDC) for the Balance of Plant package of a geothermal power generation project planned in Mahanagdong District, Ormoc City, Leyte, Philippines.

This geothermal power plant will apply Organic Rankine Cycle (ORC) binary technology1 to generate an additional 28 MW of electricity power by recovering thermal energy from the existing geothermal brine resource at the Mahanagdong Geothermal Power Plant. JGC Philippines will provide EPC services to EDC which include construction and commissioning works of the powerplant. ORC technology will be designed and supplied by Exergy International Srl (Exergy) who has a supply portfolio of over 500MWe in capacity.

Geothermal power generation is currently being actively developed in the Philippines as it is a stable, climate-independent source of energy. EDC is a leading Philippines based renewable energy developer and one of the world's largest vertically integrated geothermal producer with almost 50 years of expertise in geothermal technology. The Philippines has the third largest installed geothermal capacity in the world after the US and Indonesia (source: WGC 2020 Update Report).

JGC Philippines has been providing EPC and operation and maintenance services to clients in the Philippines for over 30 years. JGC Philippines's demonstrated track record and strong project execution capabilities were highly evaluated by EDC and led to the award of this project.

This project has been selected for Financing Programme for the Joint Crediting Mechanism (JCM) Model Projects in FY20222. The programme is administered by the Ministry of the Environment, Japan and its implementing organization, the Global Environment Centre Foundation (GEC). JGC Corporation, as a representative participant, has supported EDC for this project which will both support reducing carbon emissions in the Philippines and contribute to Japan's attainment of its CO2 reduction target.

JGC Philippines is a part of JGC Asia Pacific Group (JGC Asia Pacific) which is led by JGC Asia Pacific Pte Ltd which was established in Singapore last year. This was created to strengthen its regional management in line with the JGC Group's long-term management vision "2040 Vision" and to implement the key strategy of "Expanding growth markets and areas of EPC business" as set out in the Group's medium-term management plan "BSP2025".

JGC Asia Pacific aims to expand its business by supporting the sales and project execution of Group companies in the Philippines, Indonesia, Vietnam, and Malaysia as a control base for the Asia-Pacific region. This project is part of these activities, and JGC Asia Pacific will continue to actively support its clients in the Philippines and throughout Southeast Asia by providing low-carbon and decarbonization solutions.

※1: ORC Binary cycle has two fluid cycles, the primary cycle (open system) consists of a heating medium which transfers heat, via a heat exchanger, to the working fluid in a secondary cycle (closed system). The working fluid is expanded in a turbine which drives the generator and generates electricity. This technology enables power generation using relatively low-temperature heat sources and can be applied not only to geothermal power generation but also to waste heat recovery from industrial facilities and LNG cold energy utilization.

※2: *Ministry of the Environment, Japan has been implementing the "JCM Model Projects," which provides financial supports covering up to half of the initial investment costs. The purpose of this model projects is to financially support the implementation of projects which reduce GHG emissions by utilizing leading decarbonizing technologies in developing countries, and in return, to acquire JCM credits for achievement of Japan's GHG emission reduction and the partner countries' emission reduction target.


Mahanagdong Geothermal Power Plant operated by Energy Development Corporation

(Photo courtesy of Energy Development Corporation)