Alsons Consolidated planning shift to renewable energy

Business World Online
Posted on June 18, 2014 09:54:04 PM
By Claire-­Ann M. C. Feliciano, Senior Reporter

ALSONS Consolidated Resources, Inc. (ACR) said it is planning a shift to renewable energy projects over the next five years.

Joseph C. Nocos, ACR vice-president for power development, said: “Our investments are driven by what we believe is needed by the market.”

The swing to renewables marks a significant turn for the Mindanao-focused company, whose projects are mostly coal or diesel-based and are thus highly dependent on imported fuel.

Mr. Nocos, who was speaking on the sidelines of the Power & Electricity World Philippines 2014 conference in Pasay City, said ACR is developing a 210-megawatt (MW) coal-fired power plant in Sarangani. It also plans to undertake a 105-MW coal project in Zamboanga City.

“Over the next five years, we see that we will have to shift focus to renewable energy,” he said.

“We actually signed hydropower service contracts with the Energy department for three project sites of around 40-50 MW. We are set to sign several more hydropower service contracts for other sites,” said Mr. Nocos.

Besides hydropower development, Mr. Nocos said ACR is also exploring a possible solar power project with capacity yet to be finalized.

“We are now in discussions with solar power developers for the undertaking of a solar project also in Mindanao,” he added.

Asked if the company has plans to invest in biomass projects, Mr. Nocos cited the challenge of securing sustainable fuel sources for such plants.

“That’s the main challenge that we see. We struggle to find sources of biomass that we can consistently rely on over the long-term,” said Mr. Nocos.

“As of the moment, based on what we’ve seen, there’s very few biomass sources that we can feasibly develop into power projects.”

Last month, ACR officials said the company is looking at capacity of more than 100-MW for various hydropower projects.

To jump-start its investment in renewable energy, the company will work on a 17-MW hydro plant that will be built along the Siguil River in the municipality of Maasim in Sarangani.

According to the Energy department showed that apart from the Siguil project, ACR -- through Alsons Energy Development Corp. -- already has service contracts for a 4-MW plant in San Carlos City and 10-MW plant in Don Salvador Benedicto, both in Negros Occidental; as well as for the 12-MW Kalaong 1 plant in Maitum, Sarangani.

ACR also has pending applications for the following projects: an 11-MW plant in Bago City, Negros Occidental; an 8-MW plant in Siayan, Zamboanga del Norte; a 23-MW plant in Lupon, Davao Oriental; the 6-MW Kalaong 2 and 4-MW Kalaong 3 in Maitum, Sarangani; and the 8-MW plant in Bayugan, Agusan del Sur.

Through Western Mindanao Power Corp. and Southern Philippines Power Corp., the firm operates a 100-MW diesel plant in Zamboanga City and 55-MW diesel plant in Sarangani province, respectively.

Mapalad Power Corp., another unit, owns and operates the 103-MW Iligan diesel plant in Lanao del Norte.

ACR profit grew 2.66% to P228.88 million in the first quarter.

Revenue more than doubled to P1.18 billion, while expenses more than tripled to P861.34 million.

ACR shares shed seven centavos or 3.35% to close at P2.02 yesterday. source