MANILA, Philippines – Renewable energy firm Greenergy Holdings Inc. has signed an agreement with a Dutch firm to jointly pursue hydropower projects in the Philippines.
The partners will set up a new company with an authorized capital of four million euros to facilitate hydropower projects.
In a disclosure, Greenergy said it “entered into a preliminary agreement with Hydroring Capital BV for the development, operation and management of multiple hydropower projects, infrastructures and/or facilities in the Philippines.”
The companies will use a “Hydroring” concept, which involves multiple hydropower project.
Greenergy said it aims to provide “affordable access to environmentally friendly and sustainable sources of renewable energy.”
Hydroring Capital is a Dutch firm that has developed a hydropower concept based on a portfolio of proprietary turbine innovations with a variety of added value components, Greenergy said.
Under the preliminary deal, Greenergy and Hydroring Capital will create a joint venture vehicle. The new company will be 60-percent owned by Greenergy and 40-percent by Hydroring Capital.
It will have an authorized capital stock of about four million euros, Greenergy said.
“The project is subject to the conduct of a satisfactory financial and technical feasibility study and due diligence and the execution of definitive agreement,” Greenergy said.
The deal is expected to be finalized in the next four months, it added.
Greenergy is pursuing numerous renewable energy projects in the Philippines.
Last month, the company said it expects to raise P415.537 million by selling shares to Cleantech Projekgesellschaft mbH, a fund managed by the ThomasLloyd Global Asset Management (Switzerland) AG of Zurich.
The fresh capital will be used for the construction of a new biomass power plant in the Visayas.
In March, Greenergy’s board allowed the company to sign deals with government agencies and local government units for solid waste recycling and biomass generation projects.
Greenergy is also 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.
Initial investment will cost $200 million for a 49.5-MW wind energy project composed of 33 units of 1.5-MW wind mills.