Ayala’s Enex seeks buyers of Batangas power plant output | Inquirer Business
OFFTAKE CONTRACTS

Ayala’s Enex seeks buyers of Batangas power plant output

MANILA  -Listed Enex Energy Corp. is still awaiting competitive bidding for its 1,100-megawatt combined-cycle gas turbine project in Batangas province that is expected to boost capacity in the Luzon grid, according to a top official.

Enex chair John Eric Francia said a competitive selection process would help the company secure a customer offtake contract and ensure long-term fuel supply.

Offtake agreements allow a buyer to purchase all or a portion of the manufacturer’s future production. These are usually undertaken before the construction of the production facility, such as a power plant, to ensure financing.

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Enex is pursuing the project through Batangas Clean Energy Inc. (BCE), a joint venture with US-based Blackstone Inc. portfolio company Gen X Energy LLC.

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“We hope that the BCE project will be able to contribute to the much-needed capacity in the Luzon power grid. Despite the challenges of the past year, we continue … to further advance the development of the BCE gas plant to help address the country’s energy needs,” Francia said at the Enex annual stockholders’ meeting last week.

Enex is a wholly owned subsidiary of the Ayala-led energy firm ACEN Corp., where Francia concurrently serves as president.

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The Department of Energy is currently reviewing the competitive selection process to make sure that power firms are able to deliver needed supply within agreed timeframes.

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BCE said early this year it was eyeing the construction of the P60-billion plant to begin in August to provide the much-needed power generation capacity by 2025.

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According to BCE, the Batangas plant can burn up to 50-percent clean hydrogen by volume as supplemental fuel once hydrogen becomes commercially available.

This could supply 5 to 10 percent of the Luzon grid’s power requirements, it said.

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The project will be constructed on a 24-hectare (ha) onshore land and a 15-ha foreshore area in barangays Libjo and Malitam. INQ

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TAGS: AC Energy Philippines Inc. (ACEN), Business, subsidiary

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