Publicly-listed Basic Energy Corporation (BSC) has completed a strategic cross-sale of shares between its subsidiaries, marking a crucial step in its partnership with RENOVA, Inc. and the finalization of their joint development agreement for the 50-megawatt Mabini Wind Energy Project.
The company, in a disclosure to the local bourse said, BSC shares held by wholly-owned subsidiary, RDG Wind Corporation (formerly Mabini Wind Energy Corporation), were transferred to another wholly-owned unit, Basic Diversified Industrial Holdings Inc. Basic Diversified Industrial Holdings acquired 18 million shares in RDG Wind Energy at P0.125 per share, totaling P2.25 million.
The cross-sale paves the way for the finalization of the Joint Development and Shareholders Agreement (JDSHA), which BSC entered into in April 2024 with Renova, a Tokyo-based renewable energy firm.
Under the agreement, BSC, through its subsidiary Mabini Energy Corporation (MEC) will enter into a 50:50 joint venture with Renova. BSC will transfer 10 million MEC common shares to RENOVA at a par value of P1 per share, securing the Japanese firm a 50% ownership stake in the Mabini Wind Energy project.
The P5-billion wind energy project recently completed a Wind Resource Assessment (WRA), which yielded positive results, confirming the site’s potential for strong wind energy generation. This assessment strengthens the project’s viability, bringing it closer to full-scale development.
The flagship project covers a substantial area of 4,860 hectares on the Mabini peninsula in Batangas, situated south of Metro Manila. Construction is expected to commence in 2026 for completion in the first quarter of 2028.
In recognition of its potential, the Department of Energy awarded a 25-year service contract to BSC in 2021, encompassing a five-year pre-development phase, with the option to extend for an additional 25 years.
BSC’s strategic move underscores its commitment to expanding the country’s renewable energy portfolio. With wind power emerging as a key contributor to the Philippines’ clean energy future, the company’s partnership with RENOVA positions it at the forefront of the national energy transition.
What are your thoughts on BSC’s and RENOVA’s wind power expansion in the Philippines? Do you see wind energy playing a bigger role in the country’s renewable energy mix? Share your insights in the comments and follow Power Philippines for more updates on the latest energy developments!
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