A Singapore-based unit of a Japanese firm is investing in Aboitiz Power Corporation to expand its clean energy projects in the Philippines.
AboitizPower’s parent firm Aboitiz Equity Ventures (AEV) said its board approved the sale of 1.84 billion common shares of its power arm to JERA Asia Pte. Ltd., AEV said in a series of disclosures to the Philippine Stock Exchange.
The sale, upon approval by AEV shareholders, would result in JERA owning 25.01% of AboitizPower. AEV has called for a Special Stockholders Meeting on December 9 to approve and ratify the deal.
In a separate statement by JERA, the firm said that it invested $1.58 billion (around Php80.6 billion) in AboitizPower, the Philippines’ largest power generator.
JERA said that it and AboitizPower are exploring a number of areas of collaboration including the potential joint development of power projects, including those using liquefied natural gas (LNG), collaboration on new generation technologies, and potential participation in aspects of plant operation and management.
The Japanese firm has also signed a memorandum of understanding with AboitizPower to collaborate in fuel sourcing and management of the LNG required for potential LNG power plants which can supplement intermittent RE.
In addition, JERA and AboitizPower are collaborating on a roadmap to reduced CO2 emissions in the Philippines, and will work together to explore potential opportunities to develop “zero-emission thermal power generation” technologies that JERA is developing in Japan. Such technologies avoid CO2 emissions during power generation by using green fuels such as ammonia and hydrogen.
“We have had a very good relationship with the Aboitiz family for many years, since Tokyo Electric Power Company joined the power business in the Philippines through TeaM Energy Corporation in 2007. In cooperation with AboitizPower, JERA will contribute to further development in the Philippines by both supporting the stable supply of energy in the country and contributing to an expeditious, cost-competitive roll-out of clean and renewable energy while taking into consideration the unique circumstances of the country,” said JERA President Satoshi Onoda.