Wednesday, October 4, 2017

Alsons investing P1 billion in Sarangani river hydro project



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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