PNOC, Canada's Enerasia tie up for renewable energy projects

MANILA, Philippines - State-run Philippine National Oil Co. (PNOC) has entered into an agreement with a Canadian power firm for the development of renewable energy.

PNOC president Antonio Cailao said the joint venture will be carried out by its renewable energy arm, PNOC Renewables Corp. (PNOCRC).

Cailao said PNOCRC and the Constellation Energy Corp. (CEC), a subsidiary of Toronto-based Enerasia Renewable Corp., entered into a strategic alliance to develop renewable energy projects in the Philippines.

In a memorandum of agreement (MOA) signed recently, both parties agreed to share industry expertise and utilize each other’s management, financial and technical resources. PNOCRC and CEC have extensive renewable energy know-how and potential renewable energy property leases for renewable applications.

“PNOCRC is hitting the ground running with this new joint venture.  I have instructed them to make their renewable energy projects operational by 2010 at the earliest. This company is the vehicle for PNOC to engage in renewable energy projects such as solar, hydro, wind, and naturally, re-enter geothermal. When we sold PNOC Energy Development Corp. in 2007, I did not agree to a non-compete clause that would tie PNOC’s hands from re-entering geothermal,” Cailao said. 

PNOCRC is mandated to promote and undertake research, development, utilization and commercialization of new, renewable, non-conventional energy sources.  

 “We are optimistic that this MOA with Constellation Energy will fasttrack our hydro, solar and wind energy projects,” said PNOCRC president Pedro Maniego Jr.”

”We are initially looking at projects that will produce from 25 to 50 megawatts of energy.” 

Enerasia CEO Jane Mackay,for her part, said  “Enerasia has a great deal of confidence that this joint venture with PNOC, combined with our international development partners, is going to greatly contribute to the growth of renewable energy in the Philippines.”

Jose Leviste Jr, Enerasia chairman and former president and CEO of Mirant Philippines, added that green energy is the wave of the future and welcomed government initiatives in the sector and the strategic alliance with PNOCRC.

Both companies are initially looking at projects in the Mindoro, Palawan, and Visayas areas, which are already experiencing energy shortages.

In a related development, Enerasia, and Philcarbon said they are planning to put up the 28-megawatt Bongabong hydro electric power project estimated to cost $84 million, or $3 million per MW.

The project is located in the province of Mindoro Oriental.

The proposed Bongabong hydropower scheme diverts flows from the Bongabong River north-eastwards to the nearby Tangon Creek where the available head difference between the two rivers can be utilized by hydropower turbines for power generation.