Greenergy investment in biofuel firm OK’d

Publicly listed Greenergy Holdings Inc. is finalizing its planned P25-million investment in local biofuel firm Isabela Alcogas Corp.

In a disclosure to the Philippine Stock Exchange Monday, Greenergy said its board of directors had already given the company the green light to subscribe to P25 million worth of shares of Isabela Alcogas, with authority to make advances of up to P50 million. The board has likewise authorized the company chair and president to “finalize the terms and conditions and sign the agreements and documents,” it said, referring to the transaction.

Isabela Alcogas is engaged in manufacturing and trading of ethanol and other biofuels. It earlier acquired the so-called “usufruct” rights to 15,000 hectares of land for the first phase in connection with its plan to put up a cogeneration bioethanol and power plant.

Greenergy is also engaged in renewable energy projects and has plans to embark on a $1.3-billion wind power projects in the Philippines over the next 10 years. It earlier teamed up with China-based Tianjin Tianbao Investment and Development Corp. (TTIDC) for a joint development, funding and operation of these 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 pursue wind energy projects that can generate at least 1,000 megawatts of power. An initial investment of $200 million in the wind energy projects is expected within the first two years.—Amy R. Remo