Japan's JERA to invest in Aboitiz Power for decarbonization ventures
MANILA, NNA - Japanese energy company JERA Co. will invest about $1.58 billion in major Philippine utility firm Aboitiz Power Corp. to help stabilize the Southeast Asian nation's electricity supply and promote its decarbonization drives.
JERA, a joint venture between Tokyo Electric Power Company Holdings Inc. and Chubu Electric Power Co., said Monday that it will acquire about 27 percent of Aboitiz Power's outstanding shares as a result of the investment. It will be one of JERA's biggest investments and one of the largest in the Philippines by any Japanese firm.
JERA's share acquisition will reduce the equity stake of Philippine conglomerate Aboitiz Equity Ventures Inc., Aboitiz Power's parent company, from 77 percent to 52 percent.
Once the deal is finalized, Tokyo-based JERA will send executives and employees to Aboitiz Power and discuss joint renewable energy venture operations such as offshore wind power generation, in addition to the liquefied natural gas business.
JERA President Satoshi Onoda said during a virtual press conference, "Aboitiz Power has demonstrated a strong determination to shift to environmentally-friendly energy. By directly participating in its management, it is possible for us to expand decarbonization in many enterprises quickly and effectively."
Aboitiz Power is set to boost its renewable energy power generation capacity by 3.7 million kilowatts in the next 10 years in a bid to raise its ratio in total power generation capacity to 50 percent.
The Manila-based firm will also increase LNG-fired power generation by about 1 million kilowatts in cooperation with JERA.
JERA will provide Aboitiz Power's fire-powered plants with improvement tips and technology to detect potential trouble as well as human resources and training to run such plants more efficiently.
LNG is drawing attention in the Philippines because the nation's only natural gas field, the Malampaya gas field off the coast of Palawan Island, is feared to be depleted in several years.
Onoda said, "JERA, which has strong expertise in the LNG value chain business, will be directly involved in overall operations from the start and provide power plants backed by competitive fuel procurements and efficient management." (NNA/ Kyodo)