Energy Development Corporation (EDC) took a big step in its global expansion in late January, bagging a contract to develop geothermal fields in Chile.

In an interview after the special stockholders’ meeting, president and COO Richard Tantoco said EDC was awarded a geothermal contract located near the Chilean capital of Santiago.

“We were finally awarded a service contract in Chile called Newen which we applied for in 2009,” Tantoco said. He noted that EDC will develop Newen’s steam field potential and will eventually build a power plant.

EDC had set up a subsidiary, EDC Chile Limitada, to bid for geothermal concessions in the country. The company is currently undertaking geological surveys in the area.

According to Tantoco, it will take at least a year to develop the field because drilling a well takes 70 to 80 days.

“This will be followed by the testing of wells for about 90 days. The drillings and tests could take a year, maybe a little more, depending on rig availability within Latin America.

It is only after that can you set up the power plant. Our general rule of thumb is from the time we get the concession contract to the time we generate the actual kilowatt-hours, it could take as long as six to seven years,” he said.

The EDC president also said the company is finalizing its partnership with Hot Rock Ltd. (HRL) to bid for more geothermal concession areas in Chile and Peru. HRL, an Australiabased international renewable energy company, holds one of the largest geothermal acreage in Australia.

Photo caption: EDC president and COO Richard Tantoco (3rd from right) and CENECO president Atty. Arnel Lapore (3rd from left) seal the power supply agreement. Also in photo are (l-r) CENECO treasurer Cesar Leonardia and VP Michael Maravilla, EDC EVP Ernesto Pantangco and GCGI SVP Lito Santos