Greenergy allots P672 million for start-ups

MANILA, Philippines - Listed renewable energy firm Greenergy Holdings Inc. will invest 100 million yuan (around P672 million) to finance start-up science and technology firms and make their innovations commercially available.

In a disclosure to the stock exchange, Greenergy said its board of directors authorized the company’s entry into new businesses.

Greenergy said it secured board approval “to invest up to 100 million renminbi to form a joint venture China-based science and technology incubation company.”

The joint venture firm will finance start-up companies in economic zones for science and technology, renewable energy and environment-friendly products, it said.

“The joint venture is for us to capture Chinese technology and market,” Greenergy president and chief executive Antonio L. Tiu said.

Meanwhile, the board of directors also allowed Greenergy to sign deals with government agencies and local government units for solid waste recycling and biomass generation projects.

The board also granted authority “for the possible acquisition of Puncture Rescue Agent, a modern technology for tire puncture repair.”

Greenergy also said it will create a new subsidiary to engage in renewable energy.

Last week, Greenergy doubled its authorized capital stock to P2 billion following the approval of the Securities and Exchange Commission. The move finalized the P250-million fund infusion from Earthright Holdings, Inc.

The company’s board said Music Semiconductors Philippines Inc., which is 39-percent owned by Greenergy, will look for prospective investors to fund its expansion and list in the local bourse.

Furthermore, Greenergy said it can now give its consent for Tianjin Tianbao Investment and Development Corp.’s plan to transfer its power projects to subsidiary China Power (Tianjin) New Energy Development Co. Ltd.

Greenergy is in a joint venture with China-based Tianjin Tianbao for the construction of $1.3 billion worth of wind power projects with a total generating capacity of 1,000 megawatts (MW) in the Philippines in the next 10 years.

China Power and Greenergy will create a joint working committee to conduct final due diligence for planned power projects.

Initial investment will cost $200 million for a 49.5-MW wind energy project composed of 33 units of 1.5-MW wind mills. Tiu said the funds will be spent in the next six to eight quarters.

Greenergy is also looking at solar power, geothermal energy and hydrolectric power projects here and abroad.