MANILA, Philippines — AC Energy Corp. (ACEN) is removing oil exploration and mining in its primary and secondary purposes in line with the company’s goal to achieve net zero emissions by 2050.
The removal of oil exploration and mining is part of the amendment in the company’s Articles of Incorporation which was cleared by the board and endorsed by its corporate governance and nomination committee, ACEN said in a disclosure to the Philippine Stock Exchange yesterday.
The board-approved amendment also included the specification of retail electricity supply and provision of guarantees, as well as the change in corporate name and principal office, it said.
“The changes to the primary purpose and secondary purposes are intended to remove the activities that place the company’s business under the purview of the Philippine foreign investment negative list, and to specify the company’s authority to provide guarantees in furtherance of its business,” the disclosure read.
As a result of the amendment, ACEN said foreign equity participation in the company’s business may be increased.
Under the 11th foreign investment negative list (FINL), foreign ownership is limited to 40 percent in businesses involved in the exploration, development and utilization of natural resources while no foreign investments are allowed in small scale mining.
Meanwhile, foreign investments are exempted in power generation, in the supply of electricity to the contestable market, and similar businesses or services not covered by the definition of public utilities.
ACEN said the amendments would be presented for stockholders’ approval on Dec. 15.
Last month, ACEN announced its commitment to net zero greenhouse gas emissions to limit global warming by 1.5 degrees by 2050.
As part of its net zero journey, ACEN’s board also approved the transition of the company’s generation portfolio to 100 percent renewable energy by 2025.
To enable this transition, ACEN will spin off all its thermal assets by 2025. It secured board approval to enter into a property-for-share swap with ACE Enexor Inc. (ACEX), the listed oil and gas exploration and production unit of the Ayala Group.
ACEN also plans to retire South Luzon Thermal Energy Corp. (SLTEC) by 2040, 15 years ahead of its technical life. SLTEC owns and operates the 2x135-MW coal-fired power plant in Calaca, Batangas.
The early retirement of the coal plant will be done through the Energy Transition Mechanism (ETM) introduced by the Asian Development Bank (ADB).
The company aims to be the largest listed renewables platform in Southeast Asia, with a goal of reaching 5,000 MW of renewables capacity by 2025.
Currently, ACEN has 2,600 MW of attributable capacity in the Philippines, Vietnam, Indonesia, India and Australia. The company’s renewable share of capacity is at 80 percent, among the highest in the region.