News
Icelandic Energy Companies, Reykjavik Energy Invest and Geysir Green Energy, Decide to Divest Themselves of Stake in Consortium that Acquired Geothermal Energy Firm PNOC EDC
Reykjavik, December 28, 2007 - On November 29, Red Vulcan completed the acquisition of 60% of the outstanding capital stock of Philippine geothermal energy firm PNOC EDC. Red Vulcan is a consortium between Philippine company First Gen Corporation (First Gen) and Icelandic sustainable energy firms Reykjavik Energy Invest hf (REI) and Geysir Green Energy ehf (GGE). The consortium was established to acquire a majority stake in PNOC EDC.
The participation of the three firms in Red Vulcan is governed by a collaboration agreement that covers financial involvement, business development, technical assistance and other areas. REI and GGE today announced that they have decided to divest themselves of their 40% stake in the consortium, and confirmed their intention to continue to support business development and technical assistance efforts.
In light of these developments, the consortium will be wholly-owned by First Gen and its subsidiary, Prime Terracota Holdings Corp.
Comments:
Mr. Gudmundur Thoroddsson, REI's President and CEO:
REI is committed to long-term involvement in the Philippines. Our plans regarding the EDC deal have changed. However, we remain committed to our other projects in the Philippines, including the Biliran steam field that we own in partnership with GGE and Fedco.
Mr. Asgeir Margeirsson, GGE's President and CEO:
The privatization of EDC has created a unique opportunity to accelerate the harnessing of the enormous geothermal sources in the Philippines. We have decided to cease our involvement in Red Vulcan. However, we are open to working with EDC and First Gen in the future on a project- to-project basis.