Philippines seeks $100M from ADB for geothermal de-risking

The Philippines is seeking an initial $100 million from a $250 million Geothermal Resource De-Risking Facility managed by the Asian Development Bank (ADB), with the facility targeted for approval this year.

Energy Undersecretary Rowena Cristina L. Guevara said that the project aims to reduce risks for potential geothermal power investors and will be funded with $190 million from ADB's ordinary capital resources and an additional $60 million from ASEAN Catalytic Green Finance concessional funds.

The facility, which is expected to supply contingent convertibles up to 50% of total cost of drilling to reduce investment risk at the geothermal development exploration stage, will be managed by LANDBANK with talks ongoing for its operational launch next year.

As of 2023, the Philippines has an installed geothermal capacity of 1,952 megawatts, making it the third-largest producer globally.

The Department of Energy said that the project awaits approval from the Investment Coordination Committee of the Department of Economy, Planning, and Development (DEPDev).