PetroEnergy sets up ‘clean’ energy unit

Publicly listed PetroEnergy Resources Corp. has put up a wholly-owned subsidiary that will undertake its planned renewable energy projects.

The incorporation of the new subsidiary called PetroWind Energy had been approved by the Securities and Exchange Commission, said PetroEnergy in a disclosure Thursday to the Philippine Stock Exchange.

PetroEnergy, however, did not divulge further details about the subsidiary.

PetroEnergy plans to start initial development work for its 50-megawatt Nabas wind power project in Aklan within the year.

The target is to start commercial operations as early as mid-2014, pending the granting of a declaration of commerciality by the Department of Energy, the company earlier said.

The investment in the planned Nabas wind farm may likely reach between $125 million (or about P5.1 billion at a rate P41 to a dollar) and $135 million (or roughly P5.5 billion).

This is based on the general rule that $2.5 million to $2.7 million will be needed to produce a megawatt of wind power.

Last year, PetroEnergy disclosed that it was able to sign an agreement with Aklan Electric Cooperative Inc. (Akelco) to construct a transmission line for the Nabas wind power project.

Akelco is the electricity distribution franchise holder in the area where the proposed wind facility will be put up.

A construction contract, which is expected to be signed following the transmission line agreement, stipulated that the power firm would engage Akelco to erect a single-circuit 69-kilovolt overhead interconnection line based on engineering design and transmission line components to be furnished by PetroEnergy.

Apart from the wind project, PetroEnergy, through its 65-percent interest in Maibarara GEOthermal Inc., is embarking on a 20-MW geothermal facility in Batangas, which is expected to start commercial operations before yearend.

Its partners in the geothermal venture are Trans-Asia Oil and Energy Development Corp. (25 percent) and PNOC Renewables Corp. (10 percent).