In our geothermal operations, EDC faced challenges  in steam decline and reservoir processes, insufficientreinjection capacity, well integrity issues, and the  experimental nature of major innovation projects. To  ensure these risks are addressed, we implemented  a management-approved Drilling Program and  a Project Stage Gating Process, along with Well  Risk Review Framework and Well Risk And Asset  Management that reinforced the operational  efficiency of our facilities. We also implemented  the Leytex Bilateral Steam Exchange as part of  our Fluid Collection and Recycling System (FCRS)  optimization initiative.     

    

In addition, we installed a scale-inhibition system  by Nalco Water (an Ecolab company) to address  the crucial blockage in the two-phase header where  all the wells of a production pad are connected.  This was caused by mineral deposits of silica and  iron sulfide, obstruction that could have decreased  the geothermal output of the wells by 65%. Two  products were used to prevent or slow down  future blockage rate. blockage: Nalco® GEO980  and Nalco ® GEO962. The first tool, Nalco®  GEO980, greatly reduced silica buildup, while  Nalco ® GEO962 dispersed and controlled the  iron sulfide. These products were selected through  Nalco Water’s Geomizer™, a digital modeling  tool that determines the proper remedies for a  plant’s scale and corrosion risk. Then, Nalco Water  implemented a treatment plan following a technical  evaluation. After four months, the treatment plan  resulted in a 70% annual reduction in scaling and  prevented production decline. It also reduced  downtime, reduced chemistry usage, and increased  the interval between mechanical pipeline cleanings  twice a year to once every two years.  

    

We also introduced Low Temperature Arc Welding  for our power plants and qualified the methods for  our rotating equipment repairs. As a result of the  considerable time spent in workshops employing    another type of cold submerged arc welding  (SAW), turbine diaphragms no longer warp and  rotors don’t bend. In the past, the SAW method  would often result in bent rotors that would have to  be shipped to Indonesia, Australia, Scotland or the  US, with substantial costs and prolonged outages.  One rotor that bent ultimately cost close to PHP  40 million to repair. In collaboration with our local  partners, we slowly worked to establish capability,  developed work procedures, and qualified both  the technology and methodology. We started with  non-rotating parts to prove our technology. In the  first stage of the process, we repaired valves and  valve flanges (the part of the valve where gaskets  are embedded) and proved successfully that the  technology works. Our age-old expensive issue of  warping flanges with the old welding and rebuilding  methods are now a thing of the past. Crucially, the  turbine rotor journals, the part of the rotor that rests  on the bearing, used to take six months and caused  considerable risk of bent rotors given that the repairs  expose the equipment to 650°C temperatures.  If the rotors are bent, shipping would take two to  three months round-trip, and stress relieving or  straightening would take another three months.  

    

As of January 2022, we now have 100% rotating  spares, many of which have used the new method.  The method is also used to repair eroded leading  edges of blades normally in the low pressure stages  on the back end of the turbine, where most of the  condensation takes place.  

    

In the past, a turbine repair that ended up with a bent  rotor cost us over USD 1 million to repair, with close  to 13 months of opportunity cost. Today, the repair  takes three months at a cost of sub USD 300,000,  with certainty in the outcome and substantially less  stress on the equipment along the way.  

    

Considering the importance of EDC to integrating  these new systems with our operations, we continue  to implement initiatives to protect, maintain, and  upgrade our manufactured capital. These are  enhanced resource management, geoscientific  activities, continuous development and testing  of existing wells, drilling of new wells, and well  intervention, to name a few. For our geothermal  reservoirs, we have routine monitoring and  maintenance, which include preventive and  corrective maintenance.  

    

All of these underscore EDC’s focus on purposeful  innovation, leveraging technology to further  advance its mission to build a decarbonized and  regenerative future.