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LISTED APC Group, Inc. said a subsidiary has signed two deals with Chevron Kalinga Ltd. to develop a geothermal project in Kalinga.
APC said unit Aragorn Power and Energy Corp. was the signatory to the deal with Chevron Kalinga, a wholly owned subsidiary of oil giant Chevron.
Aragorn Power is the holder of a geothermal renewable energy service contract from the government. The service contract in Kalinga covers around 26, 000 hectares.
“Under the agreement, Chevron will be responsible for the exploration, development and operation of the steam field and power plant activities,” the company said in its disclosure.
The steam field is expected to generate around 100 megawatts of power. It will cost $300 million to develop.
Shares in APC closed at P0.80, down 3.6% from its previous close of P0.83.