MANILA, Philippines - Phinma unit Trans-Asia Oil and Energy Development Corp. has dropped its participation in a waste-to-energy venture project with two firms.
The listed power producer and upstream oil firm is now focusing on wind power generation projects, it said.
“Trans-Asia notified Geopower Energy Ltd. and Thor Energy Philippines Inc. that it is terminating its participation in the memorandum of agreement dated July 25, 2011,” the company said in a disclosure.
Last year, the company signed a deal with Australia’s Geopower and local firm Thor Energy. The agreement resulted in a joint assessment for the possible commercial operations of a power plant whose energy will be sourced from waste heat resources.
Trans-Asia earlier said potential clients include cement and glass manufacturers.
The termination of Trans-Asia’s deal with the two energy firms will be effective in the next 45 days.
“We had reordered our priorities,” Trans-Asia president Francisco Viray said in a text message.
Viray said the company has set wind projects as its priority.
Specifically, Trans-Asia will push through with the P6.5-billion, 54-megawatt (MW) Guimaras wind project given the release of the feed-in tariff (FIT).
The FIT scheme, whose implementation is already delayed by almost three years, guarantees investments of renewable energy firms through fixed rates that would be shouldered by consumers over a set period of time.
Late last month, the Energy Regulatory Commission approved the final rates for the FIT, which brings closer to reality the P106.85 billion worth of renewable energy projects planned under the scheme.
Approved FIT that shall apply to wind power generation projects is P8.53 per kwh for wind.
To date, Trans-Asia’s generating capacity from power plants under administration is at 186.4 MW. It is also in a joint venture with Ayala Corp.’s AC Energy Holdings Inc. to start operations of a P13-billion, 135-MW circulating fluidized bed power plant in Calaca, Batangas in 2014.
Trans Asia holds oil and petroleum service contract (SC) 6A and 6B in Northwest Palawan, SC 14 (Tara Block) and SC 14B-1 (North Matinloc) in Northwest Palawan, SC 51 in the East Visayan Basin, SC 55 in Southwest Palawan and SC 69 in the Visayas Basin.
Each SC has a predevelopment term of three years and a 25-year development stage, which may be extended for another 25 years.