Aboitiz Power Corporation has described its recently-formed partnership with Japanese firm JERA as a “key enabler” in its ten-year renewable energy (RE) expansion plan.
Parent firm Aboitiz Equity Ventures (AEV) announced JERA’s $1.46 billion acquisition of 27% of AboitizPower via a disclosure to the Philippine Stock Exchange on September 27, which was characterized as a “transaction [that] unlocks significant capital that will be used toward fueling the [AEV] Group’s growth initiatives.”
“This transaction will deepen our bonds and represents a leap forward in our shared mission to support economic development in the Philippines and beyond while supporting the energy transition towards a decarbonized future,” AboitizPower President and CEO Emmanuel Rubio said in a statement.
JERA is one of the world’s largest power producers and the largest single liquefied natural gas (LNG) buyer in the world. Rubio said that as the energy sector undergoes a transition, this presents a great opportunity for AboitizPower.
With a presence in over ten countries worldwide, JERA’s international footprint provides AboitizPower with further opportunities for collaboration and new market entry.
Rubio shared that this partnership with JERA will result in a more future-ready organization with access to new perspectives, capabilities, and a global network.
“Through this partnership, we hope to build on our ten-year plan, where we aim to reduce the carbon intensity of our business. We intend to explore new pathways toward decarbonization that will complement our renewable energy growth plan and our nature-based carbon sequestration program,” Rubio said.
AboitizPower, the country’s largest power generator, earlier announced its plan to invest around Php190 billion to expand its RE capacity and achieve 4,600 megawatts in renewables or half of its target generation portfolio by 2030.
The company said that both parties have already identified potential areas for collaboration across multiple fronts including joint development of LNG-to-power projects, LNG fuel sourcing and management, potential participation in aspects of plant operations and maintenance, as well as the exploration of the use of new generation technologies.
Rubio assured that there will be no management changes resulting from the partnership, but rather a “greater diversity of perspective at the board and enhanced governance.”
“We are optimistic that our partnership will bring about positive change not only for our organizations but, ultimately, for the customers and communities we serve,” Rubio said.