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Envent to Increase Profitability With New Contract With Philippine Authorities
Power Purchase Contracts Worth More Than USD 350 Million Already Signed
| Source: Envent Holding Phillipines
MANILA, PHILIPPINES--(Marketwire - February 1, 2010) - Envent Holding Philippines Inc.
(Envent), a major geothermal developer in the Philippines and Indonesia,
today announced that the contractual base for its Biliran geothermal
project has been substantially enhanced with a new contract with the
Philippine Department of Energy (DOE).
With the new contract, Biliran Geothermal Incorporated (BGI), the project
company executing the project in Biliran, will take advantage of the
ground-breaking Philippine Renewable Energy Act that was passed December
16, 2008. The new contract converts the 2008 "Geothermal Service Contract"
(which is based on the older legislation) to a "Renewable Energy Service
Contract" (which falls under the new legislation). Advantages include
various fiscal incentives such as income tax exemption for the first seven
years of commercial operations and special tax rates on equipment and
machinery.
Envent is a geothermal developer active in Indonesia and the Philippines.
Envent´s most advanced project is its Biliran island project. Additionally,
Envent has multiple applications for new geothermal working areas pending
consideration by the Philippine DOE, and is preparing applications for
geothermal working areas in Indonesia.
Envent recently announced the signing of Power Purchase Agreements worth
more than USD 350 million for the Biliran geothermal project. Biliran Unit
1 is scheduled to come online in 2012 with a capacity of 50 MW. Biliran,
which lies just a few kilometers north of the island of Leyte, is located
in the Eastern Visayas region of the Philippines and has an existing
connection to the national power grid.
Comment:
Mr. Gudmundur F. Sigurjonsson, Chief Executive Officer, Envent:
"The signing of this agreement with the DOE allows the Biliran project to
take advantage of the multiple advantages that the recent ground-breaking
Philippine renewable energy legislation offers. With that legislation, the
Philippines has taken a leadership position in Asia in terms of enabling
private renewable energy companies to utilize renewable energy resources in
a clear and well-defined manner."
About Envent
Envent (http://www.envent-power.com) is a renewable energy business
dedicated to the exploration and development of geothermal resources in the
Philippines and Indonesia. Envent possesses a strong link with the
Icelandic geothermal community; its key shareholders are Iceland-based
Geysir Green Energy and Reykjavik Energy Invest. Iceland is considered a
world leader in renewable energy with an impressive 100 percent of the
power capacity derived from renewable sources (23 percent geothermal and 77
percent hydro).