Marubeni looking at Philippine geothermal

Tokyo-based Marubeni, a diversified trading house, has expressed interest in geothermal development in the Philippines, according to Manila power company First Gen.

In a filing with Manila's stock exchange, First Gen said Marubeni entered into an agreement to "seriously consider" investment of up to 40 percent in Red Vulcan Holdings, the company which controls both First Gen and geothermal power producer Energy Development Corp., or EDC.

First Gen said Marubeni is in the process of firming up the composition of the consortium that will make the investment.

"This investment into Red Vulcan is a clear sign of confidence in the intrinsic value of EDC," said Richard Tantoco, chief operating officer of First Gen, in a statement.

"We firmly believe that a partnership with the consortium is formidable and strengthens EDC's ability to grown, especially overseas."

The companies expect to close the deal within the fourth quarter of this year.

First Gen said Energy Development is currently the largest supplier of geothermal energy in the Philippines, the No. 2 geothermal producing country in the world.

Marubeni, with twelve business divisions including agri-marine products, chemicals, and energy, has dipped into the cleantech industry before. In December 2007, the company grabbed a majority interest in a California wind project developer (see Marubeni buying majority stake in Oak Creek wind).

Under that deal, Escondido, Calif.-based Oak Creek Energy Systems said Marubeni would invest $16.6 million for a 55.4 percent stake in Oak Creek, with the California company also signing an agreement to become Marubeni's exclusive wind energy development partner for North America.

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