AboitizPower subsidiary to take over wind project
By Ed Paolo Salting – January 15, 2025
from The Manila Times
ABOITIZ Power Corp. (AboitizPower) said on Tuesday that its subsidiary, Aboitiz Renewables Inc. (ARI), would be taking full control of Cornerstone Energy Development Inc. (CEDI) after a joint venture partner, Mainstream Renewable Power Philippines Holdings B.V. (MRP), sold its shares and effectively terminated an agreement to co-develop an onshore wind project in Camarines Sur.
In a disclosure, Aboitiz Power said it was informed by ARI that it “reached an agreement” with MRP last Friday, Jan. 10, for the transfer of its shares in CEDI through a share purchase agreement.
CEDI had been MRP’s partner for the development of a 58.5-megawatt (MW) onshore wind project in Camarines Sur since 2017. In October 2022, AboitizPower, through ARI, also signed an agreement with MRP to build a 90-MW onshore wind project in Libmanan, Camarines Sur, in which ARI was set to acquire a 60-percent stake.
“The closing of the agreement effectively terminates the agreements previously entered into by the parties for the development of an onshore wind project in Libmanan, Camarines Sur,” AboitizPower said.
Separately, AboitizPower said that its joint venture with Upgrade Energy Philippines, Aboitiz Upgrade Solar Inc. (AUSI), had signed a long-term solar power purchase agreement with Republic Cement & Building Materials Inc. (RCBM).
Under the deal, AUSI will develop, build and operate a ground-mounted solar project in RCBM’s facility in San Mateo, Norzagaray, Bulacan, while RCBM will purchase the clean energy that will be generated from the project.
AboitizPower said that AUSI would shoulder the upfront capital investment and the operations of the project, and would also help RCBM to achieve long-term operational savings while reducing its carbon footprint.
The ground-mounted solar project is set for completion in the second half of this year.
“This project sets a new benchmark for solar adoption in the industrial sector. By bridging AUSI’s expertise in delivering innovative energy solutions and RCBM’s sustainability goals, we are creating a blueprint for how renewable energy solutions can power the Philippines’ industrial future,” AboitizPower First Vice President James Yu said.
Republic Cement Services CEO Roman Menz, meanwhile, said “this partnership reflects our dedication to sustainability in terms of addressing the pressing need for cleaner energy solutions.”
“By integrating solar energy into our operations, we take a decisive step toward reducing emissions and contributing to a more sustainable Philippines,” he added.
AboitizPower shares on Tuesday were unchanged at P39.50 each amid a 0.69-percent dip for the benchmark Philippine Stock Exchange index.
