Monday, July 24, 2017

Basic Energy starts study on Japan solar project



By Danessa Rivera (The Philippine Star) | Updated July 23, 2017 - 12:00am

MANILA, Philippines - Basic Energy Corp. will soon start due diligence on solar farms in Japan after remitting ¥50 million, or roughly P22.74 million,  to Solmax Power Ltd. of Hong Kong.
Basic Energy told the Philippine Stock Exchange it signed the investment term sheet and has remitted a refundable earnest deposit to Solmax to trigger the due diligence work.
“The refundable deposit allows Basic Energy to begin due diligence on Solmax and its solar projects,” Basic Energy senior vice president and general manager Anthony Cuaycong said in a text message.
“Should the due diligence prove satisfactory, Basic Energy will then endeavor to make a proper investment offer, with the refundable deposit slated to form part of the equity investment of Basic Energy in Solmax,” he added.
Earlier, the company said it is scouting for solar power investments overseas, particularly in Asia.
It is exploring opportunities with its partner Vintage Engineering Public Co. Ltd., a publicly listed company headquartered in Thailand, with a nine-percent stake in Basic Energy and has the option to raise its interest to 25 percent.
This is in light of the recent pronouncement by government to scrap the feed-in tariff (FIT), a set of incentives given to power developers for a period of 20 years to invest in the more expensive renewable energy sector.
Solar is the top choice given their fast turnaround time and Japan is being considered for its expansion after being invited by Solmax to take a look at its assets in the country, Cuaycong said.
Basic Energy has previously partnered with German-backed solar developer nv vogt Singapore Pte. Ltd to look at the potential of doing a solar project in one of its properties located in Bolinao and Fabian in Pangasinan and Labason in Zamboanga del Norte.
Apart from solar, Basic Energy and VTE have agreed the latter has the right to invest in the Mabini Geothermal Project and other projects of Basic.
Currently, the company has five geothermal service contracts, namely the Mabini Geothermal Service Contract (SC) in Batangas, East Mankayan Geothermal Prospect in Ifugao, Mt. Mariveles Geothermal Project in Bataan, Mt. Iriga Geothermal Project in Albay and West Bulusan Geothermal Prospect in Sorsogon.

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