Greenergy readies capital for wind power subsidiary

Business World Online
Posted on March 26, 2012 09:57:55 PM


LISTED GREENERGY Holdings, Inc. has approved capitalization for a new renewable power unit that will invest in wind mills.


The firm’s board of directors approved a capitalization “of up to P300 million” for a wholly-owned renewable energy company.
“The new subsidiary is specific to our wind projects that we are planning with our Chinese investors,” Greenergy President and Chief Executive Antonio L. Tiu said in a telephone interview with BusinessWorld.
He added the company’s officials have signed the articles of incorporation for the new unit and will submit it to the Securities and Exchange Commission within the week.
Greenergy is planning to put up at least 1,000 megawatts (MW) of wind power facilities in the country in the next 10 years.
The new subsidiary will be involved in a 49.5-MW wind energy project which the firm earlier disclosed to the bourse.
The wind project will be composed of 33 units of 1.5-MW wind mills.
These wind mills are intended to be operational within one year from the time the joint venture vehicle is established.
Greenergy earlier formed a joint venture with Chinese firm Tianjin Tianbao Investment and Development Corp. to put up such renewable energy projects.
Mr. Tiu said Greenergy “will put up new firms specific to other ventures because Greenergy is a holding firm.”
Recently, the firm increased its capital stock to P2 billion from P1 billion with the entrance of Earthright Holdings, Inc. through a private placement.
Earthright Holdings will act as the firm’s parent company.
Earthright Holdings is the parent firm of listed AgriNurture, Inc. which is also owned by Mr. Tiu.
The company earlier said it is looking to put in $1.3 billion worth of renewable energy projects.
It will prioritize up to $200 million for wind energy but will also look into biomass, solar power, geothermal energy and hydroelectric power.
It is also in the process of negotiating the acquisition of two biomass plants.
The board also approved the “opening of bank accounts with BDO Unibank, Inc. and Central Equity Rural Bank, Inc.”
Greenergy, formerly MUSX Corp., decided to change its business focus to energy projects in 2010.
It took the initial steps to move into the energy sector when MUSX bought Total Waste Management Recovery System, Inc. in June last year.
In the nine month period ending September 2011, Greenergy posted a net loss of P5.682 million from a loss of P5.648 million in the same period in 2010 due to lower profits.
Shares of Greenergy closed unchanged at P0.018, down 5.26% from its previous close of P0.019 apiece. -- Emilia Narni J. David