Harbor Star diversifies into energy business
Tugboat and marine service provider Harbor Star Shipping Services Inc. has diversified into the energy business with the acquisition of a controlling stake in a group of companies with interests in power generation and distribution in Mindanao.
Harbor Star obtained board approval to buy – through its wholly-owned subsidiary Harbor Star Energy Corp. (HSEC) – 60 percent of shares of Astronergy Development Gensan Inc., Astronergy Development F1 Inc. and Astronergy F2 Inc., or collectively the ADI group of companies.
Following the amendment in its bylaws last August to include among its secondary purposes the business of power generation and operation of maritime schools and educational/training facilities, Harbor Star created HSEC for the business of generating, distributing, and storing electric power derived from solar energy and other renewable energy sources and fuels.
Based on Harbor Star’s disclosure to the Philippine Stock Exchange on Thursday, the ADI companies have a long-term land lease from the Department of Environment and Natural Resources, and own entitlements, licenses and permits to operate a 25-megawatt (MW) solar power plant facility in General Santos City. The capacity of this solar facility can be expanded to 75MW.
Furthermore, Astroenergy Development GenSan obtained approval from the Energy Regulatory Commission for a 25-year power purchase agreement (PPA) with the local electric distribution utility, South Cotobato II Electric Cooperative Inc. (SOCOTECO-II).
The construction of the initial 25MW solar power plant will be completed by the second quarter of 2018, the disclosure noted. Under the PPA, SOCOTECO-II will purchase all of the energy output from this solar power plant.
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