Greenergy a step closer to San Carlos investment

MANILA, Philippines - Listed renewable energy firm Greenergy Holdings Inc. is a step closer to investing in P670 million in a local biomass power project.

In a disclosure, Greenergy said its subsidiary Biomass Holdings Inc. signed an investment agreement with San Carlos Biopower Inc. (SCB).

“Under the investment agreement, Biomass Holdings will acquire a 64-percent equity interest in SCB for a total consideration of P667.527 million,” Greenergy said.

“Subject to finalization with the banks for the balance of the project funding, SCB is ready to commence construction of an 18-megawatt (MW) biomass power generation plant in Negros Occidental,” Greenergy said.

For the buy-in, Greenergy partnered with Cleantech Projekgesellschaft mbH, a fund managed by the ThomasLloyd Global Asset Management (Switzerland) AG of Zurich.

The Swiss firm invested P415.537 million in the listed firm in exchange for primary shares of the latter as well as the issuance of stock warrants in favor of Cleantech.

In March, Greenergy’s board of directors 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 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. Tiu said the funds would be spent in the next six to eight quarters.