Greenergy to invest P680M in China firm

Publicly listed Greenergy Holdings Inc. is set to invest 100 million RMB, or about P680 million, to put up a joint-venture science and technology incubation company in China.

In a disclosure to the Philippine Stock Exchange, Greenergy said the incubation company would fund start-up companies in economic zones for science and technology, renewable energy and environment-friendly products.

In another development, Greenergy said its board had approved the move made by Tianjin Tianbao Investment and Development Corp. to assign to its affiliate China Power (Tianjin) New Energy Development Co. Ltd. the memorandum of agreement (MOA) entered into by Greenergy and Tianjin last year.

The Greenergy board also granted China Power the authority to sign agreements in relation to the creation of a joint working committee to conduct final due diligence for the planned power projects.

It can be recalled that under the MOA, Greenergy and Tianjin will jointly develop, fund and operate at least $1.3 billion (roughly P55 billion) worth of wind power projects in the Philippines over the next 10 years.

Under the agreement, the two companies would establish a joint-venture vehicle to plan the development of the wind energy projects that could generate at least 1,000 MW.

An initial investment of $200 million in the wind energy projects is expected in the next two years.

Greenergy also said in the same disclosure that its board of directors had approved the establishment of a new subsidiary to engage in renewable energy and apply for accreditation with the Department of Energy in compliance with existing rules, and the grant of authority to the company or its subsidiary to enter into agreements with government agencies and local government units in relation to solid waste recycling and biomass generation.