CREC, Pertamina unit firm up collab in renewables

CREC and Pertamina NRE signed their agreement in Jakarta, Indonesia. (Contributed photo)

MANILA, Philippines — Citicore Renewable Energy Corp. (CREC) has formalized its $120-million partnership with Indonesian state-owned energy giant Pertamina. This paves the way for the listed renewable energy developer’s expansion in Southeast Asia.

In a joint statement on Thursday, CREC said it signed a share subscription agreement with PT Pertamina Power Indonesia (Pertamina New & Renewable Energy or NRE) in Jakarta.

READ: CREC sets over $1-B capex for first gigawatt goal

“CREC and Pertamina NRE will also jointly explore renewable energy (RE) investments in Indonesia, including the potential development of solar and wind power projects and collaboration related to carbon credit development and trading,” CREC said.

The deal with Pertamina NRE entails the subscription of a 20 percent interest in CREC valued at $120 million. This is the Indonesian firm’s first investment into the Philippines.

Through this strategic collaboration, the Citicore subsidiary said Pertamina NRE will be able to tap into its expertise in project development and engineering, procurement and construction.

READ: PH target: 30% renewables by 2030

In turn, CREC gains the opportunity to develop RE projects in Indonesia with its foreign partner. It manages all power generation and new and renewable energy development in Indonesia.

“With Pertamina NRE, we can view the energy transition through a different lens and create responsive, collaborative solutions for clean energy in the Philippines and Indonesia,” CREC president and CEO Oliver Tan said.

“[O]ur partnership with Citicore … is a way to elevate our capability in RE development,” Pertamina NRE CEO John Anis said.

/rwd