Alternergy, Shell surrender wind contract to DOE

By Alena Mae S. Flores – December 20, 2023, 7:20 pm
from manilastandard.net

The joint venture of Alternergy Group and Shell Overseas Investment B.V. found technical challenges in the Calavite Passage offshore wind (OSW) project and decided to return the contract to the government.

The joint venture concluded the preliminary studies and initial assessment on the technical feasibility of four offshore wind energy service contracts (WESCS) awarded by the Department of Energy (DOE).

Alternergy Holdings Corp. said in a disclosure to the Philippine Stock Exchange (PSE) Wednesday that the preliminary study was done to screen possible locations and determine the best sites for the OSW development over the contract areas covered under the four WESCs.

It said while the results of the preliminary study showed positive indications for three sites, the fourth one met technical issues.

“As with any offshore wind development, preliminary studies are used to understand the complexity and feasibility of the contract areas to select the best sites for development. Based on these studies, the three sites are deemed feasible for offshore wind development exploration,” Alternergy president Gerry Magbanua said.

The three sites are situated over the Tablas Strait issued to Tablas Strait Offshore Wind Power Corp. (TSOWPC), the project company.

Alternergy said, however, the results of the study for the Calavite Passage site located offshore and onshore Occidental Mindoro, identified several technical issues that could potentially make the development unfeasible at this time given the available technical innovations and market conditions.

The Calavite area has a potential of 5 gigawatts of wind power. Alternergy and Shell’s service contract has a potential capacity of 1 GW.

“The WESC covering the Calavite Passage located offshore and onshore Occidental Mindoro will be returned to the DOE pursuant to our obligations under the WESC while the development of the three Tablas Strait WESCs will be further explored,” Magbanua said.

Alternergy said the board of Calavite Passage Wind Power Corp. (CPWPC) discussed several technical issues that make the development of the Calavite Passage offshore wind power project “unfeasible.”

“As such, the board of CPWPC approved to surrender Wind Energy Service Contract No. 2022-02-198 covering the Calavite Passage Project to the Department of Energy,” it said.