The United States government, through its US Trade and Development Agency (USTDA), has extended financial assistance for the conduct of a feasibility study (FS) on the 50-megawatt Amacan geothermal prospect being pursued by Lopez-led Energy Development Corporation (EDC) in Mindanao.

The grant was formally launched during this week’s official visit of US Vice President Kamala Harris to the Philippines. The launch is in line with the key pillars of the Biden-Harris administration’s Partnership for Global Infrastructure and Investment, aimed at tackling the global climate crisis and to reinforce energy security.

Deadline of submissions of proposals for the FS grant by interested US firms, including qualifications and proposal data, is on Dec. 9 this year, at 5:00pm (Philippine standard time).

The US company that will be selected to undertake the feasibility study will be paid $413,120 from the USTDA grant.

In a statement to the media, the US government noted that “the power plant will support the Philippines’ clean energy transition and reduce greenhouse gas emissions.”

The planned Amacan power facility has been accorded with a geothermal service contract by the Department of Energy (DOE) via open and competitive selection process (OCSP), and the Philippine government sets tendering process on that based on potential geothermal resources as determined by the department’s technical data and research.

Under the OCSP, it was emphasized that “EDC received the exclusive rights for geothermal power at the Amacan site,” which is in the eastern coast of southern Philippines.

According to USTDA Director Enoh T. Ebong, the financial assistance will “catalyze private sector investment in geothermal technologies that US companies are well positioned to supply.”

She emphasized that by partnering with EDC, the US agency “is enthusiastic about bringing additional renewable energy resources online so that people across the Philippines have a clean and reliable source of power.”

The American government qualified the “USTDA study will help EDC confirm geothermal resource availability and conduct initial technology and financial assessments for the implementation of a geothermal power plant with around 50 megawatts of energy capacity.”

EDC President and Chief Operating Officer Richard B. Tantoco reiterated that “geothermal energy has been providing the Philippines with baseload renewable energy and helping our country avoid at least a million tons of carbon emissions each year compared to coal.”

He stressed that the country needs more geothermal energy that has round-the-clock operations “to decarbonize our energy sector and help achieve a net zero country.”