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Geothermal energy development in the Philippines: country update

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Proceedings World Geothermal Congress 2005
Antalya, Turkey, 24-29 April 2005

Geothermal Energy Development in the Philippines: Country Update

Francisco A. Benito1, Manuel S. Ogena2 and James A. Stimac3

1
Department of Energy, Energy Center, Merritt Road, Fort Bonifacio, Taguig, Metro Manila, Philippines 1201
2
PNOC Energy Development Corporation, Energy Center, Merritt Road, Fort Bonifacio, Taguig, Metro Manila,
Philippines 1201
3
Philippine Geothermal, Inc., 12th Floor Citibank Tower, 8741 Paseo de Roxas, Makati City, Philippines 1226

[email protected]; [email protected]
Keywords: The Philippines, installed generating capacity, and dampened investors’ interest in the country. Thus, only
topping cycle plant, bottoming cycle plant, Mak-Ban, Tiwi, 22 MWe was added to the total installed capacity from
Bacman, Tongonan, Palinpinon, Mt. Apo. geothermal power plants since 1998 and a total of 28 wells
with total depth of 63.1 kms. drilled between 2000-2003
ABSTRACT (Table 2).
The Philippines is the world’s second largest producer of To date, since production began in 1977, the cumulative
geothermal energy for power generation. As of end 2003, electricity generation from geothermal energy totals 152,336
the total installed generating capacity from geothermal gigawatt-hour (GWh) from 100,602 GWh in 1998 or an
power plants was 1,931 MW, accounting for about 19% of increase of 51.4% (Table 1). The electricity generated is
the country’s power generation mix. about 262.65 million barrels of fuel oil equivalent
(MMBFOE), which translates to about US$5.57 Billion in
The Government has set a renewable energy target, dubbed
terms of foreign exchange (forex) savings (Department of
“100 in 10”, that aims to double the current installed
Energy, 2003).
generating capacity from renewable energy sources in the
next ten years. Geothermal energy will be a major
contributor to the attainment of this target, as the country 2. GEOTHERMAL RESOURCES AND POTENTIAL
also aims to become the world’s largest geothermal energy The geologic setting of the Philippine archipelago and
producer, having proven geothermal as a reliable and clean individual Philippine geothermal systems was described and
source of energy for the past 30 years. extensively discussed in Sussman et al. (1993). The service
contract areas that are either currently producing, or likely to
1. INTRODUCTION be developed in the next decade are discussed below which
is essentially an update of the country paper presented by
As of December 2003, the Philippine Government through
Karunungan et al. (2000) in the last World Geothermal
the Department of Energy (DOE) continue to administer the
Congress held in Japan in 2000.
operations of nine (9) geothermal service contract areas. Of
these contract areas, six (6) are producing fields and three
(3) are in advanced exploration stage (Figure 1). Two of the 2.1 Tiwi, Albay
contracts are operated by Philippine Geothermal, The Tiwi field is located about 300 km southeast of Manila
Incorporated (PGI), a subsidiary of the Union Oil of in the Albay Province of Luzon Island and operated by PGI
California (UNOCAL), while the rest are managed by the (Figure 1). Throughout much of the past five years,
government-owned and -controlled Philippine National Oil production in the Tiwi field has been limited by the
Company-Energy Development Corporation (PNOC-EDC). availability of aging power plant stations. The capacity of
the field was also derated from 330 MW to 275 MW with
The Philippines’ total installed generating capacity from the shutdown of Unit 4 as of December 2001 (Table 3).
geothermal power plants stood at 1,931 MWe and is about
12.7% of the country’s total capacity of 15,132 MWe (Table Rehabilitation of Plants A (Units 1 and 2) and C (Units 5
1). The country has likewise maintained its position as the and 6) commenced in 2003, and should be completed in
world's second largest producer of geothermal energy for 2005. As part of this rehabilitation, the rated capacities of
power generation. The largest geothermal installation is the units will be increased to 59 MW for Units 1 and 2 and
located in Tongonan, Leyte with an aggregate capacity of 57 MW for Units 5 and 6. By late 2005, it is therefore
722.68 MWe or 37% of the total installed geothermal expected that Tiwi will be operating at 232 MW capacity.
capacity. In terms of actual production, the contribution of Unit 3 will continue operation without rehabilitation, in a
geothermal energy to the country’s total power generation standby mode. During the period of relatively low plant
mix has decreased from 21.52% in 1998 to 19.1% in 2003 availability that has occurred from 1996 to 2005, reservoir
(Figure 2) due to the commissioning between 2000-2001 of pressures and fluid levels have recovered significantly,
about 2,760 MWe natural gas power plants. especially in the Naglagbong and Kapipihan areas (Protacio
et al., 2001), and this also helped to stabilize the overall
The onset of the 1997 Asian financial crisis slowed down steam production capability of the field. However, since no
the growth of the country’s economy, thereby reducing new wells have been drilled in Tiwi since 1997, some steam
electricity demand because the projected industrial activities, development projects were required to meet the anticipated
with its corresponding electricity requirement did not steam needs of the rehabilitated units (estimated at 4,400
materialize (Perez, 2004). This economic slow down was kph at the wellhead).
aggravated further by the 9/11 incident in the U.S. in 2001

1
Benito et al.

Figure 1: Philippine geothermal service contract areas

Table 1: Philippine geothermal industry performance

2
 Benito et al.

2004). Geochemical studies have helped identify the major

Oil based
11.20% Natural Gas avenues of dilute (1400 ppm Cl) but relatively hot recharge
25.80% to the main production zone, and attempted to quantify the
Hydro
15.30% relatively minor impact on field cooling (Abrigo et al.,
2004). Mak-Ban has been comparatively free of resource
problems, aside from injection breakthrough in the early
years of operation (e.g., Sta. Maria et al., 1995). This
problem was resolved by moving the large edgefield
Geothermal
Coal injection load of that area further to the west. Recent tracer
19.10%
28.60%
tests using thermally stable naphthalene sulfonates (Rose et
al., 2002) have shown that the present injection system now
provides relatively little recharge to the production area.
Figure 2. Power generation mix, 2003
These efforts included work-overs of a number of existing As of late 2003, 71 production wells and 15 injection wells
wells in 2003 and 2004, involving cleaning of silica scale were in service. PGI’s resource strategy is focused on
from wellbores and, in some cases, perforation of identified upgrading steam supply to match the requirements of the
production zones. Upgrades of the steam gathering system power plants once the ongoing rehabilitation is completed
were also made to improve system efficiency, flexibility, toward the end of 2005. New steam wells are being targeted
and reliability. These upgrades included construction of in the deeper portions of the resource to tap hotter, higher
new steam gathering and separation facilities employing pressure conditions and to better ensure the field’s long-term
“cascading brine scrubbing” and hot brine injection lines on sustainability. Mak-Ban gross generation ranged from 2248
the Matalibong Ridge, and upgrades of existing separators at GWh in 2001 to 1657 GWh in 2003 (Table 4). The
wellsites 1, 3, 5, 6, and 7a (Kitz and Toreja, 2002). declining trend was due mainly to limited government
Injection capacity in the southeast portion of the field was investment in make-up drilling and declining plant
also increased through construction of additional injection availability. Further production declines in 2004 were due
lines, commissioning of idle edgefield wells as injectors, and to ongoing plant rehabilitation efforts. Make-up drilling
scale cleanouts of existing injection wells. resumed in 2002 and 2003 with 6 new wells added to the
field. All of these wells were drilled to >2800 meters
Since 1979 up to end 2002, Tiwi geothermal field has vertical depth in order to tap the deep, high-pressure
generated a total of 39,179 GWh of electricity (Table 4). In reservoir. In 2004 an additional 4 to 6 wells will be drilled
that time, the field has experienced many problems common to reach the steam supply requirement. Commissioning of
to geothermal reservoirs (i.e., cold water influx, corrosion, several idle wells near the margin of the current production
scaling, HCl corrosion, etc.). PGI, in cooperation with the area as “trickle injectors” will be used as a low-cost method
state-owed National Power Corporation (NAPOCOR), has to meet the increased re-injection requirement of the field.
responded to and largely overcome these problems (Sussman
et al., 1993; Sugiaman et al., 2004). Despite these challenges, Rehabilitation of Plants A and B (Units 1 through 4)
a financial study conducted by ELC-Electroconsult for the commenced in 2004 and should be complete by late 2005.
Asian Development Bank showed that the net cash flows As part of this rehabilitation, the rated capacities of Units 1
including avoided oil cost had paid for the project through 4 will be increased to 63 MW each. With Units 5
investments by 1986. As of late 2003, 48 production wells and 6 (55 MW each) and Units 9 and 10 (20 MW each), it is
and 16 injection wells were in service, with production expected that Mak-Ban will then be operating at a full plant
coming mainly in the Kapipihan, Matalibong and Bariis baseload of 402 MW.
areas. Since expansion possibilities are limited, PGI’s
resource strategy is focused on maximizing the existing Table 2. Geothermal wells drilled from 2000-2003
generation potential of the field and ensuring its long-term
sustainability. Pilot tests of infield injection into the
superheated Matalibong steam zone, and downhole
neutralization of acid-sulfate fluids in well Bariis-8 (Gardner
et al., 2001) have indicated potential for augmenting steam
production without drilling new wells.

2.2 Makiling-Banahaw (Mak-Ban), Laguna

The Mak-Ban field is located about 70 km south of Manila
in the Laguna Province of Luzon Island and is also operated
by PGI (Figure 1). It is a mature geothermal field having
been in commercial production since 1979. Although
currently second in the Philippines to the Greater Tongonan
field in terms of installed capacity, Mak-Ban leads all
Philippine fields in terms of total lifetime generation with
more than 51,455 GWh (Table 4).

Recent resource summaries of this prolific resource stress its

relatively small size (about 7 km2); however, high porosity
(average of more than 10%), and high resource temperatures 2.3 Tongonan, Leyte
(up to 640oF) are factors that have allowed the field to be
The total installed capacity of the Leyte geothermal field
successfully produced at a high power density (Golla et al.,
which is operated by PNOC-EDC stands at 722.68 MWe
2001). A key factor in sustaining production is significant
(Table 3). This is broken down as follows:
recharge from the relatively lower permeability regions
surrounding the main production area (Nordquist et al.,

3
Benito et al.

• 112.5 MWe Tongonan I power plants are operated by MWe in the Palayang Bayan sector (Bacman I) was
NAPOCOR; commissioned in 1993. In 1994, a 20-MWe extension in the
• 219.48 MWe Tongonan II BOT power plants are Cawayan sector (Bacman II) was commissioned followed by
composed of the 141.98-MWe Upper Mahiao Binary the additional 20-MWe in the Botong sector, which was
and the 77.5-MWe Malitbog power plants; and commissioned in May 1998. To date, a total of 24
• 390.70-MWe Tongonan III BOT power plants which production and 12 reinjection wells have been drilled in
come from the 3 x 6.5-MWe Tongonan I Topping Bacman. As of December 2003, the power plants have
Cycle, 2 x 6.50-MWe Mahanagdong A Topping Cycle, delivered a cumulative total of 5,939.2 GWh of electricity
1 x 6.50-MWe Mahanagdong B Topping Cycle, 1 x (Table 4). A number of mechanical and other problems
16.70-MWe Malitbog Bottoming Cycle, 3 x 60-MWe related to the power-generating turbines have plagued the
Mahanagdong A&B and the 2 x 77.5-MWe Malitbog Bacman-I power plant for several years now. Most of the
power plants. time, Bacman-I was run with only one (1) unit operating,
Topping cycle plants are installed in Tongonan I, thus the low electricity output of the power plant. On the
Mahanagdong A and Mahanagdong B Sectors, while other hand, power plant operations in both Cawayan and
bottoming cycle in the Malitbog Sector. Tongonan II power Botong sectors have been relatively smooth, and steadily
plants commissioned in 1996 export electricity from Leyte supply power to the Luzon grid.
to Cebu via an AC submarine cable, while Tongonan III
commissioned in 1997 transports power from Leyte to Operation of the Manito Livelihood Geothermal Project
Luzon via DC submarine cable. inaugurated in 1998, has been suspended by PNOC-EDC.
The Project is a joint undertaking by the DOE, National
The power plants in Leyte have been in full operation since Power Corporation (NPC), National Electrification
May 1998. Consequently, Tongonan's electricity gross Administration (NEA), PNOC-EDC and the Local
generation of 3,111.98 GWh in 1998 escalated by as much Government of Manito. It is located at Pawa, Manito, Albay
as 200% as against the previous year’s 998.36 GWh. As of within the Bacon-Manito Geothermal Power Project. The
December 2003, Tongonan power plants have generated a drop in market demand as well as major turbine problems
cumulative total of 35,223.3 GWh of electricity. Gross have caused the shelving of the livelihood project.
generation for 2003 of 4,745.6 GWh was slightly lower (by
300 GWh) than the year previous because of minor fluid and 2.6 Mindanao, North Cotabato/Davao
operational problems encountered, but these have been dealt The country's sixth geothermal production field, the
with accordingly (Table 4). All ongoing activities in Leyte Mindanao field, is also operated by PNOC-EDC. It is
are geared towards sustaining the steam supply for the located on the northwest slopes of Mt. Apo in the northern
power plant requirements. These activities include drilling part of Cotabato and Davao provinces (Figure 1). It is made
of make-up and replacement wells, working-over old wells up of two power plants – Mindanao-I commissioned in
with reduced outputs and injection capacities, and dealing 1996 with an installed capacity of 54.24 MWe, and
with corrosion, erosion and mineral scaling problems. Mindanao-II put on line in 1999 with the same installed
capacity of 54.24-MWe. As of December 2003, total
2.4 Palinpinon, Southern Negros accumulated generation of both plants was 4,493.7 GWh of
The Palinpinon geothermal field, which is also operated by electricity (Table 4).
PNOC-EDC, is located in Southern Negros on the southern
flanks of a young volcanic complex. A total of 43 Existing idle production wells are planned to be used for an
production and 26 reinjection wells have been drilled in the expansion project beyond the existing Mindanao-I and -II
field. Power plants with a combined capacity of 192.5 MWe power plants. In the event that this project is realized,
are installed in Palinpinon. In Palinpinon-I (Puhagan), the Mindanao will have more than enough steam to supply
installed capacity is 112.5MWe, and the plants have been in another 20-MWe plant.
operation since 1983. Palinpinon-II is divided into three (3)
modular power plants (Table 3): Balas-balas (20 MWe), 2.7 Other Areas
Nasuji (20 MWe) and Sogongon (40 MWe). As of 2.7.1 Northern Negros, Negros Occidental (PNOC-EDC)
December 2003, all the above plants have generated a
cumulative total 16,244.8 GWh of electricity (Table 4). The Northern Negros Geothermal Project covers an area of
4,310.84 hectares situated in Mambucal, Negros Occidental
Power plant related problems have been encountered in the Island in the Visayas Region. A projected 40 MWe of
Palinpinon-I units, causing prolonged shutdowns and geothermal capacity is expected to be commissioned in
reduced loads. To date, however, all units are fully 2006. To date, a total of ten (10) exploratory wells have
operational. been drilled in Northern Negros by PNOC-EDC. Current
activities in this field are fluid collection and reinjection
Plans are underway to expand the capacity of Palinpinon-II system (FCRS) and power plant construction.
by adding another 20-MWe power plant. Idle and throttled
production wells from the Nasuji sector will be utilized and 2.7.2 Palinpinon-II Optimization (PNOC-EDC)
optimized for the additional plant. PNOC-EDC is in the As mentioned earlier, construction activities for the 20-MWe
process of discharging stand-by wells and constructing new Palinpinon-II optimization project will be underway by late
production and injection pads for the expansion project. 2004. The new plant will utilize excess steam from existing
Target commissioning year of this planned 20-MWe power Nasuji wells, and separated brine will be piped to the current
plant is 2006. Nasuji RI sink. No new well drilling is programmed for the
expansion. Like in Northern Negros, commissioning date is
2.5 Bacon-Manito (Bacman), Albay/ Sorsogon early 2006.
The Bacon-Manito Geothermal Production Field (BGPF) is
also operated by PNOC-EDC and is located in the provinces
of Sorsogon and Albay in the Bicol Peninsula (Figure 1). A
first stage geothermal power plant development of 110-

4
 Benito et al.

3. EXPLORATION AND DEVELOPMENT (Figure 3). The technical details of the prospective areas
The country’s geothermal resource potential from 35 and the contracting round activity are described in the
identified areas is estimated at 4,335 MW. Given this vast Geothermal Contracting Round-1 Brochure published by the
amount of potential reserves and the anticipated increase in Department of Energy (2004). Short description of these
energy demand, the Philippines has embarked on aggressive prospective areas are as follows:
exploration activities to bring the total geothermal capacity
to at least 3,131 MW and become the largest geothermal 3.1 Manito-Kayabon, Albay/Sorsogon
energy producer in the world in 2013. The Manito-Kayabon is a sector of BGPF located in the
Bicol Peninsula. BGPF is currently producing 110 MWe
As part of its Renewable Energy Policy Framework (REPF), from its Palayang Bayan sector (Bacman-1) and 20 MWe
the Philippine Department of Energy has undertaken in each from its Cawayan and Botong sectors. The Manito-
March to July 2004, the so-called Philippine Kayabon sector is the northernmost cluster of resource
"GEOTHERMAL-1", a contracting round aimed at blocks in BGPF. Stored heat calculations of this sector point
attracting investments in 10 prospective geothermal areas to a total power potential of 51.2 MWe.

Table 3. Utilization of geothermal energy for electric power generation.

5
Benito et al.

Table 4. Geothermal energy gross generation in GWh

Figure 3. Prospective geothermal areas offered for private sector investment

6
 Benito et al.

3.2 Tanawon-Rangas, Albay/Sorsogon 3.7 Dauin, Southern Negros

The Tanawon-Rangas is another sector of the BGPF. Based The Dauin geothermal prospect is situated about 6 kms
on the reservoir model of the BGPF, Tanawon and Rangas southeast of the Southern Negros Geothermal Production
sectors are considered well within the southern boundary of Field (SNGPF). Between 1973 and 1981, surface
the BGPF’s main upflow region. Two deviated wells exploration surveys were conducted in Dauin. As a result of
drilled in Tanawon, TW-1D and TW-2D in year 2000 these surveys, two exploration wells (DN-1 and DN-2) were
yielded power potentials of 8.9 MWe and 3.4 MWe, drilled in 1982-83. Based on available technical data, a
respectively, for a total of 12.3 MWe. Potential geothermal geothermal convective system is postulated in Dauin area
reserve estimates indicate a total power potential of about which is distinct from the brine system in Palinpinon. The
22.4 MWe and 23.5 MWe for Tanawon and Rangas, upflow in Dauin probably lies beneath the center of the MT
respectively. anomaly located between Mt. Talines and Cuernos de
Negros.
3.3 Mindanao Geothermal Production Field
Optimization, North Cotabato 3.8 Natib, Bataan
The Mindanao Geothermal Production Field (MGPF) which Surface geological, geochemical and geophysical surveys at
is found on the northwest flank of Mt. Apo, North Cotabato the Natib geothermal prospect in Bataan were completed in
is divided into 3 sectors from southeast to northeast – 1987. Two deep exploratory wells NA-1D and NA-2D were
Sandawa, Marbel and Matingao. In view of the current drilled in 1989. Wells NA-1D and NA-2D encountered a
excess steam and brine in MGPF, an optimization plan was reservoir temperature of 270 oC at depths of 2751 m and
conceptualized and results of the study dictate that 2916 m, respectively, based on alteration mineralogy. While
additional power generation facilities of at least 20 MWe both wells have low permeability to sustain commercial
could be realized. discharge, the hottest portion of the geothermal system
which is in between Natib dome and the Tigulangin and
Mamot springs show great potentials.
3.4 Mt. Cabalian, Southern Leyte
Drilling of the second exploratory well in Mt. Cabalian,
3.9 Mabini, Batangas
Southern Leyte was done in 2003. The well was spudded
from a new pad and deviated to the NNE to test the The Commission on Volcanology (COMVOL) initiated the
resistivity anomaly defined by the magneto-telluric survey detailed geoscientific investigation of the Mabini geothermal
conducted earlier. Two (2) permeable zones were prospect in the late 1970’s. Succeeding surveys led by
intersected by the well in the open hole section; the lower PNOC-EDC commenced in the 1980’s. Based on PNOC-
feed zone has an estimated temperature of about 280°C. EDC’s assessment, Mabini is an intermediate-temperature
During flow test, however, the hotter zone did not appear to geothermal resource with reservoir temperature of at least
contribute to the fluid discharge. Instead, fluid temperature 180 oC. It was postulated that the upflowing neutral-pH
was almost constant at 245-250°C reflective of the alkali chloride fluids are associated with the Pleistocene Mt.
temperature in the upper horizon (Bayon and Sanchez, Binanderahan volcanics. It is envisaged that this prospect is
2004). suitable for direct utilization or binary system power
generation.
The second exploratory well confirmed the presence of an
exploitable geothermal system in Mt. Cabalian. Future Montelago, Oriental Mindoro
plans for the area include acidizing and re-discharging well Reconnaissance survey at the Montelago eothermal
SL-2D, and drilling a third exploratory well to target the prospect, in Oriental Mindoro started in 1982. This was
center of the geophysical anomaly. followed by detailed geological, geochemical and
geophysical studies in 1988 until 1989. An integrated
3.5 Biliran Island geoscientific assessment revealed that the prospect hosts a
Geothermal exploration in Biliran started in 1979 up to hot, neutral-pH, alkali-chloride, water-dominated system
1981. Three prospective targets were delineated, namely, associated with a cooling igneous body beneath Mt.
Vulcan, Kalambis and Panamao areas. In 1982, three Montelago. The potential resource area of 3-5 km2 has been
exploration wells (BN-1, BN-2 and BN-3) were drilled to delineated with a reservoir temperature of 180-200 oC. It is
test the geothermal potential of Vulcan area. Results of envisioned that this prospect can be developed for either
exploration drilling indicated that the geothermal resource direct utilization or binary system of electricity generation.
area in Biliran ranges from 14 to 16 km2. The heat source is
a magmatic body beneath the Vulcan-Libtong area where 4. INDUSTRY OPPORTUNITIES AND CHALLENGES
acid fluids with temperature of ≈ 332 oC are presently While the Philippines may be one of the pioneers and in the
upflowing as intersected by well BN-3. Wells BN-1 and forefront of world geothermal energy production, the fact
BN-2 established the presence of neutral-chloride brine at remains that only two entities, PGI and PNOC-EDC, are
exploitable depths. currently involved in steamfield exploration and
development. Benito (1998) discussed the main reasons that
3.6 Amacan, Compostela hinder private sector investment in geothermal energy
The Amacan prospect is characterized by impressive thermal development such as the royalty tax imposed on the net
features including fumaroles, solfatara and hot springs that proceeds from geothermal operations.
are widely distributed. Significant data had been gathered in
the Amacan geothermal prospect from 1975 to 1985. The New laws have been passed that may have impacts or effects
deep exploratory well (AM-1) in Amacan encountered on geothermal energy development, investments as well as
measured temperature of 265 oC at 2700 m depth but with may prolong the gestation period of geothermal projects:
low permeability. The areas with the largest potential for
(1) Republic Act (RA) no. 8371 or the Indigenous Peoples
geothermal development are located around Ugos Dome,
Rights Act of 1997 promotes, protects and recognizes
Amacan and Gopod North Solfataras.
the rights of cultural communities and indigenous
7
Benito et al.

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Table 5. Geothermal direct heat uses

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