Greenergy, Dutch firm to put up hydro plants

Publicly listed Greenergy Holdings Inc. (formerly MUSX Corp.) has tied up with Dutch firm Hydroring Capital BV to put up multiple hydropower projects and other related infrastructure in the Philippines.

In a disclosure to the Philippine Stock Exchange on Monday, Greenergy Holdings reported that on September 14 it signed a preliminary agreement with Hydroring Capital to develop, operate and manage the projects.

The two companies hope to provide Filipinos affordable access to environmentally friendly and sustainable sources of renewable energy.

Hydroring Capital has developed a hydropower concept based on a portfolio of proprietary turbine innovations with a variety of added value components.

Under the preliminary agreement, both parties will establish a joint-venture vehicle through the incorporation of a new local company, under a 60-40 equity arrangement favoring Greenery Holdings. The proposed company will have an authorized capital stock of about 4 million euros, or P217,887,000 (at a rate P54.4719 for each euro).

According to Greenergy, that proposal is still subject to the conduct of a satisfactory financial and technical feasibility study and due diligence and the execution of definitive agreements.

The parties’ desired schedule, subject to revision, sets the signing of the joint-venture agreement within 121 days from the signing of the preliminary agreement.

Apart from hydropower projects, Greenergy is also looking to invest in the 18-megawatt biomass facility of San Carlos BioPower Inc., the funding for which is expected to come from the P415-million capital infusion of Cleantech Projekgesellschaft mbH, a fund managed by the ThomasLloyd Global Asset Management (Switzerland) AG of Zurich.

The company is also investing in local biofuel firm Isabela Alcogas Corp., which is currently engaged in manufacturing and trade of ethanol and other biofuels. It has earlier acquired the so-called “usufruct” rights to 15,000 hectares of land for the first phase in connection with its plan of putting up a cogeneration bioethanol and power plant.

Greenergy also revealed plans to embark on wind power projects worth $1.3 billion, with over a thousand megawatts of capacity, over the next 10 years.—Amy R. Remo