Nickel Asia unit’s geothermal service contract scrapped by DOE - The Manila Times
Published November 30, 2025
Nickel Asia's Geothermal Service Contract Terminated by DOE
Nickel Asia Corporation (NAC) has recently announced that its subsidiary, the Philippine Geothermal Production Company, has had its geothermal service contract terminated by the Department of Energy (DOE). This development comes as part of the government’s ongoing efforts to streamline energy operations and ensure compliance with regulatory standards.
The DOE’s decision to rescind the geothermal service contract was officially communicated to Nickel Asia through a letter dated September 29, 2023. The termination affects Geothermal Service Contract No. 2009-01, which was originally awarded in 2009. The contract covered a geothermal area located in the province of Leyte, where the company had been exploring for potential geothermal resources.
In its response to the DOE’s action, Nickel Asia expressed its disappointment but acknowledged the government's right to terminate contracts under certain conditions. The company emphasized its commitment to adhering to regulatory requirements and maintaining open communication with the DOE as it navigates this situation.
This contract termination is part of a broader trend within the Philippine energy sector, where the government is taking a more active role in regulating and overseeing energy projects. The DOE has been focusing on ensuring that energy companies comply with environmental standards and that they are effectively contributing to the country’s energy security.
Nickel Asia has been a significant player in the Philippine mining sector, primarily known for its nickel production. However, the company has also diversified its portfolio to include renewable energy initiatives, particularly in geothermal energy. As part of its strategy, Nickel Asia has sought to leverage its expertise in mining to explore geothermal resources, which are considered a sustainable energy source.
The company’s geothermal operations were intended to complement its nickel mining activities, providing a dual revenue stream and aligning with global trends toward renewable energy. The Leyte project was expected to contribute to the country’s energy supply while supporting the transition to cleaner energy sources.
Despite the setback with the geothermal service contract, Nickel Asia remains optimistic about its future in the renewable energy sector. The company has indicated that it will continue to explore other opportunities within the geothermal space and is committed to working closely with the DOE to ensure compliance with all regulatory requirements.
The DOE’s decision to terminate the contract has raised questions about the future of geothermal energy projects in the Philippines. The government has identified geothermal energy as a critical component of its renewable energy strategy, given the country’s rich geothermal resources. The Philippines ranks third in the world in terms of geothermal energy production, following the United States and Indonesia.
Geothermal energy is seen as a reliable and sustainable source of power, with the potential to significantly contribute to the Philippines’ energy mix. The government has set ambitious targets for increasing the share of renewable energy in the country’s overall energy generation, aiming for 35% by 2030 and 50% by 2040.
In light of these targets, the termination of Nickel Asia’s geothermal service contract underscores the challenges faced by energy companies in navigating regulatory frameworks while pursuing renewable energy projects. The DOE has made it clear that compliance with environmental and operational standards is non-negotiable, and companies must be prepared to adapt to evolving regulations.
The Philippine Geothermal Production Company, a subsidiary of Nickel Asia, had been actively engaged in exploration activities in the Leyte region. The company had invested significant resources into assessing the geothermal potential of the area, conducting geological surveys, and initiating drilling activities. The termination of the contract not only halts these efforts but also raises concerns about the financial implications for the company.
Nickel Asia has indicated that it will conduct a thorough review of its geothermal operations and assess the potential impact of the contract termination on its overall business strategy. The company remains committed to its renewable energy goals and will seek to identify alternative projects that align with its vision for sustainable energy development.
The DOE’s decision is part of a larger regulatory environment that is increasingly focused on accountability and sustainability within the energy sector. As the government seeks to enhance energy security and promote renewable energy, it is likely that more stringent measures will be implemented to ensure compliance and environmental protection.
In conclusion, the termination of Nickel Asia’s geothermal service contract by the DOE highlights the complexities of operating in the renewable energy sector in the Philippines. As the country continues to prioritize renewable energy development, companies must navigate a challenging regulatory landscape while striving to meet the growing demand for sustainable energy solutions.
Nickel Asia’s experience serves as a reminder of the importance of regulatory compliance and the need for energy companies to remain adaptable in an evolving market. The company’s commitment to exploring new opportunities in geothermal energy reflects its dedication to contributing to the Philippines’ renewable energy goals, despite the current setback.
As the renewable energy landscape continues to evolve, stakeholders across the sector will be closely monitoring the implications of this contract termination and the broader trends in regulatory oversight within the Philippine energy industry.