The Department of Energy (DOE) has formally terminated the Geothermal Renewable Energy Service Contract for the Montelago project in Oriental Mindoro, citing the failure of Mindoro Geothermal Power Corp. (MGPC) to meet key development milestones.
MGPC is a subsidiary of Emerging Power Inc. (EPI), which in turn is owned by listed mining and energy firm Nickel Asia Corp. (NAC). In a disclosure to the Philippine Stock Exchange on Wednesday, NAC said the DOE deemed the termination “final and irrevocable,” and also directed MGPC to settle a financial obligation of $120,000 within 30 days, representing training assistance dues.
The Montelago geothermal project was previously re-evaluated by a third-party expert, who found that low mass flow and limited power generation potential rendered the site commercially unviable.
Despite the setback, NAC said the contract termination will not materially affect its financial position and reaffirmed its focus on expanding its solar energy portfolio.
“We remain focused on the execution of our existing pipeline in San Isidro, Leyte; Subic, Cawag; Botolan and others,” said Andre Dy, NAC vice president for investor relations, treasury and finance.
EPI is targeting 1,000 megawatts (MW) of renewable energy capacity by 2028. The first 120-MW phase of its San Isidro solar project is under construction, with a second 120-MW phase already issued a notice to proceed. The 145-MW Subic-Cawag project is slated to begin operations in 2026, while pre-development activities for projects in Botolan, Zambales (45 MW), and Nazareno, Bataan (50 MW) are ongoing.
