Nickel Asia Corp. unit’s geothermal deal revoked due to slow progress - BusinessWorld - BusinessWorld Online
Published November 23, 2025
Nickel Asia Corporation's Geothermal Project Agreement Terminated Due to Delays
Nickel Asia Corporation (NAC) has announced that its subsidiary, the Philippine Geothermal Production Company, has had its geothermal service contract revoked by the Department of Energy (DOE) due to a lack of progress. The decision was communicated through a filing with the Philippine Stock Exchange, indicating that the DOE's action was prompted by the company's failure to meet the expected timelines for project development.
The geothermal service contract was originally awarded in 2014, covering an area of approximately 27,000 hectares in the provinces of Albay and Sorsogon. This contract was aimed at the exploration and development of geothermal energy resources within the designated region. However, the DOE has expressed concerns regarding the slow pace of work and the inability of the company to advance the project as initially planned.
NAC’s geothermal project was envisioned to harness the potential of the geothermal resources in the Bicol region, which is known for its volcanic activity and significant geothermal energy potential. The company had aimed to contribute to the country's renewable energy goals through the development of this resource. However, the revocation of the service contract highlights the challenges faced in the renewable energy sector, particularly in project execution timelines.
In its filing, Nickel Asia Corporation stated that it had made efforts to comply with the requirements set forth by the DOE. Nonetheless, the DOE's assessment concluded that the progress made was insufficient to justify the continuation of the service contract. The company has expressed its commitment to renewable energy and aims to explore other opportunities in the sector moving forward.
The decision to revoke the geothermal service contract comes at a time when the Philippine government is actively promoting renewable energy development as part of its strategy to transition to cleaner energy sources. The DOE has been encouraging investments in renewable energy, including geothermal, solar, and wind, to reduce the country’s dependence on fossil fuels and to meet the increasing energy demand.
Despite the setback in the geothermal project, Nickel Asia Corporation remains a significant player in the mining and energy sectors in the Philippines. The company has a diversified portfolio that includes nickel mining and processing, as well as investments in renewable energy projects. NAC has previously expressed its intention to expand its renewable energy initiatives and contribute to the country’s sustainability goals.
The revocation of the geothermal service contract serves as a reminder of the importance of adhering to project timelines and regulatory requirements in the renewable energy sector. As the Philippines continues to seek ways to enhance its energy security and sustainability, the development of geothermal resources remains a critical component of the country’s energy strategy.
As the industry evolves, stakeholders are hopeful that the lessons learned from this experience will lead to improved project management and execution in future renewable energy initiatives. The DOE has reiterated its commitment to supporting the development of renewable energy resources in the Philippines, emphasizing the need for timely and efficient project implementation.
In conclusion, while the termination of the geothermal service contract is a setback for Nickel Asia Corporation, it underscores the ongoing challenges and complexities associated with renewable energy project development in the Philippines. The company is expected to continue its efforts in exploring new opportunities within the renewable energy landscape, contributing to the country’s transition towards a more sustainable energy future.
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