September 30, 2017
ALSONS Consolidated Resources, Inc.
is investing P1 billion in a 15.1-megawatt (MW) run-of-river hydropower
project, the company said on Friday, marking its move towards developing
renewable energy.
In a disclosure to the stock
exchange, the publicly listed holding firm of the Alcantaras placed the project
cost at P3.7 billion. The facility will be located at the Siguil River basin in
Maasim, Sarangani province.
The project is under subsidiary
Alsons Renewable Energy Corp., the direct owner of project company Siguil Hydro
Power Corp.
“Construction of the Siguil Hydro
plant will commence shortly within this year upon completion of all necessary
permitting and formalities,” it said.
It said the power plant is expected
to begin commercial operations within the first half of 2020. It will provide
power to Sarangani, General Santos City and municipalities of South Cotabato,
it added.
Alsons also disclosed the approval
of a performance undertaking to be issued to its long-time partner Toyota
Tsusho Corp. in support of the sale to the Japanese government of half of the
Siguil hydro project’s carbon credits.
“This was done under the auspices of
the Japanese government’s Joint Credit Mechanism (JCM) for the reduction of
world-wide carbon emissions. A JCM project is typically implemented by Japan
and a host country through bilateral agreements,” it said.
Under the credit mechanism, in
projects using advanced low-carbon technology – such as the Siguil project –
the resulting greenhouse gas emission reductions may be credited to the project
proponents of both participating countries. It allows the project to receive
additional revenue through the sale of carbon credits.
Alsons said an international
consortium agreement had been signed on Sept. 26, 2017 by it and its subsidiary
Alsons Renewable, Toyota Tsusho and Siguil Hydro.
Toyota Tsusho is the company’s
partner in Sarangani Energy Corp., which began construction of the second
105-MW section of its 210-MW coal-fired plant in Sarangani.
On Friday, shares in Alsons rose
0.71% to close at P1.41 each. – Victor V. Saulon
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