May 7, 2019 | 12:03 am
AC Energy, Inc. has signed
a shareholders’ agreement with its Vietnamese partner in wind energy
development, initially committing to build 40 megawatts (MW) at a cost of
around $92 million for completion in the first half of 2020 its parent firm
said on Monday.
In a disclosure to the
stock exchange, Ayala Corp. said its energy platform had signed the agreement
with The Blue Circle Pte. Ltd. to jointly construct, own and operate the Mui Ne
wind farm at the Binh Thuan province in the southeastern coast of Vietnam.
“Mui Ne project will be
AC Energy’s first wind power project in Vietnam. AC Energy is very keen to
participate in the fast-growing Vietnam power sector, with pioneering
investments in renewable energy,” said Patrice Clausse, chief operating officer
of AC Energy International Holdings Pte. Ltd.
The construction of the
40-MW first phase will start immediately at an estimated cost to be financed by
debt and equity, the Ayala group said, adding that the wind farm has an
expansion potential of up to 170 MW.
AC Energy accounts for
more than 62% of the economic ownership including its 50% direct voting stake.
Project completion of
the first phase is expected in the first half of next year, in time for the new
wind feed-in-tariff deadline of November 2021, it added.
“We are delighted to
partner with The Blue Circle, and this strategic partnership builds on our
combined expertise, strong financing capabilities, and robust development
pipeline,” Mr. Clausse said.
AC Energy quoted
Olivier Duguet, The Blue Circle chief executive officer, as saying that after
four years of development, permitting, and securing land, he was “very pleased”
to start the construction of the Mui Ne wind project with the initial phase.
“The site has world
class winds and will be equipped with the first 4MW turbines of Southeast Asia
demonstrating the professionalism of The Blue Circle teams and our technology
leadership,” Mr. Duguet said.
The project company
awarded Vestas the supply and installation contract for 10 V150-4.2 MW wind
turbines, as well as a 10-year AOM5000 energy-based service agreement, AC
Energy said.
It said the Vestas
V150-4.2 MW wind turbine is considered as one of the highest producing turbines
in the industry and is thus expected to deliver a competitive cost of energy
for the project.
AC Energy said it was
scaling up its renewable energy investments and is an active participant in
Vietnam’s renewable energy sector.
In November 2018, AC
Energy through its subsidiary AC Energy International acquired a 25% ownership
of The Blue Circle as well as co-investment rights in the latter’s projects. AC
Energy and its partner will jointly develop, construct, own and operate The
Blue Circle’s pipeline of around 2,000 MW of renewable energy projects across
Southeast Asia, including 700 MW in Vietnam.
The Ayala company said
its partner developed and constructed one of the first wind farms in Vietnam,
Dam Nai JSC. AC Energy owns and operates the first wind farm in Southeast Asia,
North Wind Power.
On Monday, shares in
Ayala Corp. closed lower by 0.22% at P898 each. — Victor V. Saulon
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