Greenergy to form RE subsidiary

Greenergy Holdings Inc. is putting up a new wholly owned subsidiary to engage in renewable energy (RE) projects.

In a disclosure to the Philippine Stock Exchange, Greenergy Holdings said its board had approved the capitalization of the renewable energy company.

The board likewise granted the company the authority “to make deposits for future subscription of up to P300 million.”

Greenergy Holdings was earlier reported to be looking at investing at least $1.3 billion—about P55 billion based on the prevailing exchange rate—to develop wind power projects in the Philippines over the next 10 years. It said that it had teamed up with China-based Tianjin Tianbao Investment and Development Corp. (TTIDC) for a joint development, funding and operation of the proposed renewable energy projects. A memorandum of agreement was earlier signed by the two parties.

Under this agreement, the two companies will establish a joint-venture vehicle to plan the development of wind energy projects that can generate at least 1,000 megawatts. An initial investment of $200 million for the wind energy projects is expected to be infused within the first two years.

The agreement also stated that the parties would plan the establishment of the first turnkey project, a 49.5-megawatt (MW) wind energy project composed of 33 units of 1.5-MW wind mills. The project is expected to start operation within one year from the time the joint venture was established, Greenergy Holdings said.

The company, however, did not identify the potential sites it was eyeing for the wind power projects.

Under the agreement, the parties may also consider other renewable projects such as biomass, solar, hydro and geothermal energy, but the priority for the first two years would be the wind energy projects.