Greenergy allocates P300 million to set up renewable energy arm

Business Mirror
MONDAY, 26 MARCH 2012 19:52 PAUL ANTHONY A. ISLA / REPORTER


LISTED Greenergy Holdings Inc. said on Monday that its board of directors has approved the setting up of a wholly owned renewable energy arm.


In a disclosure to the Philippine Stock Exchange, Greenergy said the board has approved the capitalization of a wholly owned renewable energy company “in such amount as may be acceptable with the existing laws and rules of the Securities and Exchange Commission and the Department of Energy [DOE].” The board has also given the authority for the management to make deposit for future subscription of up to P300 million.


Greenergy earlier disclosed that it is set to boost Philippine operations in the areas of science and technology, which includes projects delving on renewable energy, environment-friendly products, solid waste management and biomass generation.


The company is investing up to RMB100 million (renminbi) to form a joint-venture with a still-unnamed China-based science and technology incubation company engaged in funding startup companies within economic zones.


Greenergy is also set to enter into agreements with government agencies and local government units on solid waste recycling and biomass generation.


At the same time, it has authorized its semiconductor business, Music Semiconductors Philippines Inc., to look for prospective investors to fund the said expansion. It will also negotiate to acquire Puncture Rescue Agent, a modern technology for tire puncture repair, and establish a new subsidiary to engage in renewable energy for accreditation by the DOE.


In August last year, Greenergy executed a Memorandum of Agreement with China-based Tianjin Tianbao Investment and Development Corp. (TTIDC) to develop renewable energy projects.


Greenergy and TTIDC joined hands to develop, fund and operate renewable energy projects in the country.


Upon the establishment of the pertinent joint venture vehicles, Greenergy said they plan to develop wind energy projects in the Philippines with a capacity of at least 1,000 megawatts (MW) and an estimated investment of at least $1.3 billion within a 10-year period.


The joint venture will prioritize investing up to $20 million in wind energy projects within the first two years. One project is to establish the 49.5-MW wind energy project, which is composed of 33 units of 1.5-MW windmills.


Greenenergy is also eyeing investments in other renewable sources such as biomass, solar, hydro and geothermal energy.