Aboitiz Power Corp. has decided to pull out its participation in a geothermal project in Indonesia to focus its resources on ongoing projects.
“Aboitiz Power has decided that it will focus and allocate its resources for other ongoing and pipeline projects and has agreed to step aside to allow its partner to proceed with the project,” the company said in a disclosure to the Philippine Stock Exchange yesterday.
Aboitiz Power said that it will exit the greenfield geothermal exploration and development project of is Singapore – based subsidiary, AboitizPower International Pte. Ltd, in Ijen, East Java Province in Indonesia.
However, AboitizPower will push through with its hydropower projects in the country.
“We are actively pursuing hydro possibilities and keeping our eyes open for other potential projects,” AboitizPower president and COO Antonio Moraza said.
The power company partnered with SN Power AS and PT Energi Infranusantara on feasibility studies for the exploration and development of a possible 127 MW hydropower generation project along the Lariang River in Central Sulawesi, Indonesia.
Meanwhile, in the Philippines, Aboitiz power has 3, 350 MW worth of sellable capacity from its renewable energy power plants.
The Indonesia-based greenfield geothermal plant is a 2×55 MW project deal with PT Medco Power Indonesia that was inked in September 2015.
Under the deal, AboitizPower will take in 49 percent in PT Meco Cahaya, a subsidiary of PT Medco Power.