Awarded Contract for Binary Geothermal Power Generation Project

by | Aug 3, 2023 | News and Events, Press releases

JGC Philippines, Inc. has been awarded the Engineering, Procurement and Construction (EPC) contract from Energy Development Corporation (EDC) for the Balance of Plant package of a geothermal power generation project planned in Mahanagdong District, Ormoc City, Leyte, Philippines.

This geothermal power plant will apply Organic Rankine Cycle (ORC) binary technology※1 to generate an additional 28 MW of electricity power by recovering thermal energy from the existing geothermal brine resource at the Mahanagdong Geothermal Power Plant. JGC Philippines will provide EPC services to EDC which include construction and commissioning works of the powerplant. ORC technology will be designed and supplied by Exergy International Srl (Exergy) who has a supply portfolio of over 500MWe in capacity.

Geothermal power generation is currently being actively developed in the Philippines as it is a stable, climate-independent source of energy. EDC is a leading Philippines-based renewable energy developer and one of the world’s largest vertically integrated geothermal producer with almost 50 years of expertise in geothermal technology. The Philippines has the third largest installed geothermal capacity in the world after the US and Indonesia (source: WGC 2020 Update Report).

JGC Philippines has been providing EPC and operation and maintenance services to clients in the Philippines for over 30 years. JGC Philippines’s demonstrated track record and strong project execution capabilities were highly evaluated by EDC and led to the award of this project.

This project has been selected for Financing Programme for the Joint Crediting Mechanism (JCM) Model Projects in FY2022※2. The program is administered by the Ministry of the Environment, Japan, and its implementing organization, the Global Environment Centre Foundation (GEC). JGC Corporation, as a representative participant, has supported EDC for this project which will both support reducing carbon emissions in the Philippines and contribute to Japan’s attainment of its CO2 reduction target.

JGC Philippines is a part of JGC Asia Pacific Group (JGC Asia Pacific) which is led by JGC Asia Pacific Pte Ltd which was established in Singapore last year. This was created to strengthen its regional management in line with the JGC Group’s long-term management vision “2040 Vision” and to implement the key strategy of “Expanding growth markets and areas of EPC business” as set out in the Group’s medium-term management plan “BSP2025”.

JGC Asia Pacific aims to expand its business by supporting the sales and project execution of Group companies in the Philippines, Indonesia, Vietnam, and Malaysia as a control base for the Asia-Pacific region. This project is part of these activities, and JGC Asia Pacific will continue to actively support its clients in the Philippines and throughout Southeast Asia by providing low-carbon and decarbonization solutions.

※１：ORC Binary cycle has two fluid cycles, the primary cycle (open system) consists of a heating medium which transfers heat, via a heat exchanger, to the working fluid in a secondary cycle (closed system). The working fluid is expanded in a turbine which drives the generator and generates electricity. This technology enables power generation using relatively low-temperature heat sources and can be applied not only to geothermal power generation but also to waste heat recovery from industrial facilities and LNG cold energy utilization.

※２：*Ministry of the Environment, Japan has been implementing the “JCM Model Projects,” which provides financial supports covering up to half of the initial investment costs. The purpose of this model projects is to financially support the implementation of projects which reduce GHG emissions by utilizing leading decarbonizing technologies in developing countries, and in return, to acquire JCM credits for achievement of Japan’s GHG emission reduction and the partner countries’ emission reduction target.

Staff Training Program

Staff Training Program helps employees learn specific knowledge or skills to improve performance in their current roles, those occupying supervisory functions or those being prepared to assume such role (e.g., Problem Solving and Leadership).

Cadetship Training Program

The Cadetship Program is for new engineering graduates with no work experience. It is designed to build the technical and behavioral foundation for engineers’ professional careers. The training program aims to develop the technical skills and capabilities which will be needed in the real world of Engineering-Procurement-Construction or EPC business.

Information Security

JGC Philippines, Inc., a reputable Engineering, Procurement, Construction (EPC) company, shall establish, control and maintain a secured business environment with its business partners.

For this purpose, JGC Philippines shall recognize the value of all information assets including those of customers, vendors and subcontractors and establish an Information Security Management System (ISMS) that conforms to the requirements of ISO 27001:2013. Based on this management system, JGC Philippines is committed to:

  1. Comply with all legal, corporate and other requirements pertinent to information security;
  2. Prevent unauthorized use, reproduction and destruction of all information assets including those related to customer, vendors and subcontractors and established documented procedures to secure the confidentiality, integrity and availability of the information;
  3. Protect the intellectual property rights of the company;
  4. Recognize, respect and protect the personal information of all employees entrusted to the company;
  5. Establish a contingency plan to ensure business continuity in the event of a natural disaster, act of terrorism, and computer attacks;
  6. Provide all employees with proper education and training to implement, maintain and improve the effectiveness of the ISMS; and
  7. Review regularly the effectiveness of the ISMS and subsequently aim for its continual improvement.

Environment

JGC Group is committed to contributing to the protection of the global environment based on the JGC Group's purpose of "Enhancing Planetary Health". Based on the above, we have established an environmental management system for project execution and set the following environmental policy.

  1. Set environmental goals, review them periodically, and strive to achieve them.
  2. Utilize our technologies to make proposals to customers related to the protection of the global environment.
  3. Comply with all laws and regulations related to environmental protection, as well as agreements with customers and other interested parties.
  4. Pursue continuous improvement of our environmental protection activities through the implementation of the environmental management system.
  5. Implement the following practices during the design, procurement, and construction phases of each project.
  • In our design work for projects, we shall take into consideration resource and energy conservation and work to prevent pollution of the air, soil, and water and limit greenhouse gas emissions using energy-efficient materials and equipment.
  • In procurement, we shall encourage vendors and other cooperating companies to adopt a positive attitude toward environmental protection, including the reduction of greenhouse gases.
  • In construction, commissioning, and maintenance work, we shall make every effort to reduce the impact of the environment by minimizing resource use and energy consumption, reducing and recycling waste, preventing air and water pollution, and minimizing the emission of greenhouse gases.

Quality

Under the "2040 Vision" plan, our long-term management vision established by JGC Group, we have positioned 2021 to 2025 as the "five years of challenge", and established a new medium-term business plan -- "Building a Sustainablle Planetary Infrastructure (BSP2025)".

JGC Corporation established its own-medium-term business plan based on BSP2025 and institute the following Quality Policy to implement challenges and transformation in accordance with the medium-term business plan.

  1. We shall provide the quality that fulfills all of the applicable requirements, by utilizing our wide-ranging technological expertise and project execution skills built up through years of experience and through the promotion of DX (Digital Transformation).
  2. We shall fully comply with the agreed requirements with our customers, and shall aim to establish ourselves as an organization that will prompt customers to view us as their first-choice partner when they are faced with new or advanced technical challenges in an ever-changing business environment.
  3. We shall pursue the realization of an evolving organization the promises continual improvement and gives rise to innovation and improvement, through combining a strong sense of individual responsibility and creativity, along with a will to go beyond barriers between departments and among individuals.
  4. We shall always be conscious of enhancing Planetary Health. In face of various social issues, we will become a company that is required by society by synchronizing businesses with solving such social issues.

Health and Safety

JGC Corporation's commitment to providing the highest quality products and services in accordance with the JGC Group's ""Purpose"" of Enhancing Planetary Health and the basic principles of its HSSE philosophy is evidenced by the establishment of our occupational health and safety management system for both construction work at our construction sites and for office activities at our offices as expressed in the tenets of our occupational health and safety policy described below:

  1. Establish occupational health and safety objectives and strive to achieve them. Those occupational health and safety objectives shall be reviewes periodically.
  2. Comply with all laws and regulations related to occupational health and safety, as well as agreements with interested parties, including customers.
  3. Identify the sources of risks related to occupational health and safety in advance and through thorough assessment work to prevent their occurrence.
  4. In setting and implementing objectives and plans related to occupational health and safety management, the opinions of employees and construction workers shall be considered together with their participation.
  5. Bring about continuous improvement of our occupational health and safety activities through the implementation of an occupational health and safety management system.