The Department of Energy (DOE) has terminated its contract for the 40-megawatts (MW) Montelago Geothermal Power Project in Naujan, Oriental Mindoro after the project failed to meet required milestones.
Nickel Asia Corporation said its subsidiary, Mindoro Geothermal Power Corporation, received notice Oct. 13, 2025 of the “final and irrevocable termination” of Geothermal Renewable Energy Service Contract No. 2010-02-013.
The DOE cited MGPC’s failure to comply with the project’s approved five-year work program. The project started in 2017.
The agency ordered MGPC to pay $120,000 in training assistance within 30 days.
Nickel Asia said it would pay the obligation and noted the termination would not affect the company because it had already recorded an impairment of its investment in its 2024 financial statements.
Geothermal energy contracts in the Philippines require companies to meet specific development milestones and work program commitments.
Failure to comply can result in contract termination and financial penalties.
The Philippines is among the world’s top geothermal energy producers, with the renewable energy source providing a large portion of the country’s electricity needs.
Training assistance fees are standard penalty payments required under DOE regulations when service contracts are terminated due to non-compliance.
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