Nickel Asia Corp. unit’s geothermal deal revoked due to slow progress - BusinessWorld - BusinessWorld Online
Published June 07, 2026
Nickel Asia Corp. Unit’s Geothermal Agreement Terminated Due to Insufficient Progress
Nickel Asia Corporation (NAC) has announced that its subsidiary, the Emerging Power Inc. (EPI), has had its geothermal energy project agreement revoked. This decision was made by the Department of Energy (DOE) in the Philippines, citing a lack of significant progress in meeting the project’s development milestones.
The DOE issued the termination order on the geothermal service contract (GSC) that EPI held for the Makban geothermal project in Laguna and Batangas provinces. This contract was originally awarded to EPI in 2013, and it aimed to develop geothermal resources in the area. However, the DOE has expressed concerns about the slow pace of development, which has led to the cancellation of the agreement.
In its announcement, Nickel Asia stated that the DOE’s decision was based on EPI's inability to progress through the necessary stages of project development as outlined in the service contract. The DOE emphasized that the revocation serves as a reminder of the importance of adhering to timelines and obligations set forth in energy contracts, particularly in the renewable energy sector.
The termination of the Makban geothermal project has implications not only for Nickel Asia but also for the broader renewable energy landscape in the Philippines. With the country aiming to increase its renewable energy capacity to meet its energy demands and climate goals, the loss of a geothermal project could hinder progress towards these objectives.
Nickel Asia has indicated that it will continue to explore other opportunities in the renewable energy sector. The company remains committed to its goal of diversifying its energy portfolio and contributing to the Philippines' transition to sustainable energy sources. In recent years, Nickel Asia has made strides in expanding its investments in renewable energy, including solar and wind projects.
The Makban geothermal project was expected to play a significant role in the region's energy supply, providing a stable and renewable source of electricity. Geothermal energy is recognized for its reliability and lower carbon footprint compared to fossil fuels, making it an essential component of the Philippines' energy mix. However, the challenges faced by EPI highlight the difficulties that can arise in the development of renewable energy projects.
Geothermal energy has been a focus for the Philippines, which is one of the largest producers of geothermal energy in the world. The country has a rich geothermal resource base, with several operational plants contributing to the national grid. However, the development of new geothermal projects has encountered various obstacles, including regulatory challenges, financing issues, and the need for advanced technology.
The DOE's decision to revoke EPI's geothermal contract underscores the importance of timely project execution in the renewable energy sector. As the Philippines seeks to increase its renewable energy capacity to 35% by 2030, ensuring that existing and new projects are developed efficiently will be crucial.
Nickel Asia's commitment to renewable energy remains strong, despite the setback with the Makban project. The company is actively pursuing other renewable energy initiatives and remains optimistic about its future endeavors in this sector. Nickel Asia has previously highlighted its intention to invest in various renewable energy technologies, including solar and wind, which are essential for achieving the country's energy goals.
As the Philippines continues to navigate the complexities of energy transition, the lessons learned from the Makban geothermal project's cancellation may serve as valuable insights for other developers and stakeholders in the renewable energy space. Effective project management, adherence to regulatory requirements, and collaboration with government agencies will be vital for the success of future renewable energy projects in the country.
In conclusion, while the revocation of the geothermal service contract for the Makban project represents a significant challenge for Nickel Asia and its subsidiary, the company remains focused on its renewable energy ambitions. The Philippine government’s commitment to increasing renewable energy capacity highlights the importance of continued investment and development in this sector. Moving forward, stakeholders will need to address the barriers that hinder project development to ensure a sustainable energy future for the Philippines.
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