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First Gen Corp. is earmarking up to ₱25 billion to modernize and sustain the operations of its Southern Negros Geothermal Project (SNGP), a move aimed at extending the life of one of the country’s longest-running geothermal assets while strengthening renewable energy reliability in Negros Oriental.
Through its renewable energy subsidiary Energy Development Corp. (EDC), the Lopez-led company has sought government approval to amend the project’s environmental compliance certificate (ECC), paving the way for a series of infrastructure upgrades, expanded energy storage capacity, and additional drilling activities designed to secure geothermal steam supply for decades.
The investment program, which will run through 2057, focuses on improving steamfield performance, optimizing reservoir management, and enhancing operational flexibility rather than increasing the project’s installed generating capacity.
Long-Term Reliability Program
According to documents submitted to the Department of Environment and Natural Resources (DENR), EDC plans to undertake several upgrades across the Southern Negros Geothermal Project, which has been in operation for 43 years.
Among the major initiatives is the expansion of the project’s battery energy storage system (BESS), with capacity set to triple from 30 megawatt-hours (MWh) to 90 MWh. The larger storage facility is expected to help improve grid stability and provide greater dispatch flexibility for geothermal power generation.
The company also plans to construct a dedicated transmission line to support the expanded storage system.
In addition, EDC intends to drill eight new production wells and build two additional well pads. The proposed expansion would increase the total number of wells in the geothermal field to 137 and raise the number of well pads to 41.
The project also includes the installation of new pipelines and steam-gathering facilities that will support steam delivery and improve operational efficiency across the geothermal complex.
To ensure long-term resource sustainability, EDC is considering the drilling of up to 43 make-up and replacement wells over the life of the program. These wells are intended to compensate for natural declines in steam production and maintain a stable supply of geothermal resources.
“The proposed modifications are intended to support sustained geothermal steam production, improve reservoir management, optimize operational efficiency, and strengthen energy reliability within the Southern Negros Geothermal Project,” EDC said in its filing.
No Increase in Installed Capacity
Despite the scale of the investment, EDC clarified that the initiative is not intended to increase the geothermal field’s approved installed capacity of 282.5 megawatts (MW).
Instead, the focus is on maximizing the efficiency and longevity of existing resources.
The Southern Negros steamfield currently operates at 241.8 MW and supplies geothermal steam to the Palinpinon I, Palinpinon II, and Nasulo geothermal power plants. Together, the three facilities have a combined generating capacity of 222.5 MW.
“SNGP’s over four decades of sustainable operations have exceeded the 25-year average lifespan of geothermal steamfields and continue to help First Gen fulfill its decarbonization mission,” the company said.
Environmental Considerations
As part of the ECC amendment, EDC is proposing adjustments to the project’s land footprint.
While the operational area needed for facilities will expand significantly from 151.5 hectares to 400 hectares, the overall development block will be reduced from 5,163 hectares to 4,028 hectares.
First Gen described the move as a deliberate effort to limit land disturbance while concentrating development activities in areas with confirmed technical requirements.
“A cornerstone of this responsible development is the voluntary 22-percent reduction of the project’s development block,” the company said. “This focused approach restricts land use strictly to confirmed technical needs, significantly minimizing land disturbance in the area.”
The company added that refining the development area would help maintain renewable energy production while preserving the natural environment in Negros Oriental.
“Refining its development block will enable First Gen to sustain its renewable energy production while preserving the natural environment in Negros Oriental,” it said.
Supporting Energy Security
First Gen and EDC said the Southern Negros geothermal project continues to play a significant role in the country’s clean energy transition.
Because geothermal facilities rely on naturally occurring steam from underground reservoirs, the electricity generated can displace power that would otherwise come from coal- and oil-fired plants.
EDC said the project contributes to both emissions reduction and fuel security by providing a stable source of indigenous energy.
“As the project will be utilizing naturally occurring steam from the earth, the electricity generated by the project is expected to offset the power generated by coal and oil-fired power plants in the country,” the company said. “Further, the project will help improve fuel security and stability.”
Company data showed that the Negros geothermal facilities displaced more than one million tons of carbon dioxide equivalent emissions in 2025.
With the planned ₱25-billion investment, the company is seeking to extend the productive life of the Southern Negros geothermal field while strengthening the reliability of renewable energy supply in the Visayas and supporting the country’s long-term decarbonization goals.
Source:
https://business.inquirer.net/593477/first-gen-eyes-p25-b-funding-for-negros-geothermal-biz