DOE, ADB prepare P250M geothermal de-risking facility

A $250 million geothermal de-risking facility is being prepared by the Department of Energy (DOE) in collaboration with the Asian Development Bank (ADB) and the Department of Economy, Planning and Development (DEPDev).

The facility aims to encourage investments in geothermal exploration and development by mitigating the high costs and risks associated with the initial exploration stage.

DOE Undersecretary Mylene Capongcol explained that the program intends to 'derisk' the high cost of exploration.

Under the proposed loan facility, the government will cover at least 50% of the exploration or drilling costs through a loan.

This loan can be converted into a grant if the exploration proves unsuccessful, meaning there is not enough steam to generate power.