SM Group geothermal plant goes online by 2018

Plant will have a capacity of 300 megawatts.

SM Group subsidiary, APC Group Inc., expects to start commercial operations of a US$300 million geothermal power project in Kalinga province in northern Luzon. It will mark SM Group’s entry into the energy business.

The SM Group is one of the largest conglomerates in the Philippines with interests in shopping malls, retail, real estate, banking, tourism and energy.

APC Group president Frederic DyBuncio sid the company will focus on the completion of a financial restructuring program and the exploration of its geothermal resources.

APC expects to drill exploration wells by third quarter of 2014 and should the exploration wells prove the existence of a commercial source, it will begin building a power plant.

APC Group said it will invest US$300 million to build the 100 MW power plant, which is a joint venture with Chevron Geothermal Philippines Holdings Inc.

SM Group, through private firm All First Equity Holdings, is Chevron’s partner for the latter’s geothermal power business in the Philippines. They organized Philippine Geothermal Power Production Co., Inc. to advance their interests in the Philippines.