Company president and CEO Antonio L. Tiu told the Inquirer Thursday in an interview that Greenergy’s first venture in China involves plants that will produce a combined four megawatts.
Capacity will expand in the coming years with 15 new biomass energy plants to be built in Heilongjiang province.
Tiu said Greenergy was set to acquire a majority stake in Zhongshe Renewable Energy Corp., which has four biomass facilities producing 1 MW each.
“We recently signed the term sheet and are now conducting due diligence,” Tiu said.
The deal may be completed in the third quarter, Tiu said. The biomass business in China is thus expected to start contributing to Greenergy cash flow toward the end of the year.
Following the acquisition in the third quarter, Greenergy will lead the development of 15 more biomass projects that will be built all over the province. The biomass energy projects are being undertaken in synergy with the Heilongjiang Beidahuang Seed Group Co. Ltd.
Beidahuang’s farming business will provide the rice hull to be fed to Zhongshe’s biomass facilities.
The Beidahuang Group is the Chinese partner of publicly listed agribusiness firm AgriNurture Inc., an affiliate of Greenergy.
The Chinese group and ANI formed Beidahuang Philippines to grow high-yielding rice varieties in the Philippines.