As part of their parent conglomerate’s goals of having net zero greenhouse gas emissions, AC Energy (ACEN) has signed a power supply agreement (PSA) with sister firm Ayala Land to provide it with renewable energy (RE) until 2050.
AC Energy will be sourcing its supply from its 120-megawatt (MW) Alaminos solar farm in Laguna, which it opened in June.
The long-term partnership seeks to eliminate 102,540 metric tons of carbon dioxide equivalent (MTCO2e) annually, or the equivalent of taking 22,291 cars off the road per year.
The two Ayala firms inked their deal ahead of the opening of the United Nations Climate Change Conference, or COP26, in Scotland this Monday, November 1.
Prior to the PSA, the two companies have partnered in Alaminos through ACEN’s pioneering Sustainability Hub, wherein the solar facility is surrounded by Ayala Land’s Carbon Forest, a woodland reserve that acts as a carbon trap and home to biodiversity.
AC Energy said it envisions to recreate the Sustainability Hub and close the loop through the development of Community Eco Hub recycling facilities within its project locations, fulfilling its goal of protecting the environment, creating jobs to reignite the economy, and engaging its host communities meaningfully while creating clean energy.
It also aims to create awareness on various climate action programs such as renewable energy and nature-based solutions through reforestation and biodiversity protection.
“ACEN commits to being at the forefront of energy transition, working alongside with our partners. We are happy to work with Ayala Land on this important initiative that will help the Ayala group achieve net zero greenhouse gas emissions by 2050,” ACEN President and CEO Eric Francia said in a statement.
“We are pleased that this transaction with ACEN enables us to leverage synergies across the Ayala group and provides a platform to advance our net zero goal. As we strive to deepen our commitment to sustainability, we recognize how these efforts contribute to the shift towards a low-carbon future,” said Ayala Land President and CEO Bobby Dy.
AC Energy recently announced plans to build a 5,000MW all-RE portfolio by 2025, which includes the early retirement program of its 270MW South Luzon Thermal Energy Corporation coal plant in Calaca, Batangas.