JERA partnership seen as ‘enabler’ in AboitizPower’s 10-year RE expansion journey
AboitizPower subsidiary Hedcor’s Ampohaw Hydro, located in Banengbeng, Sablan, Benguet, harnesses the power of the Balili river to generate clean and renewable electricity. (AboitizPower photo)
AboitizPower’s renewable energy aspirations are taking a huge leap forward following Japanese firm JERA’s recent acquisition of a 27-percent stake in the Aboitiz-led power company for $1.46 billion.
The sale was announced on Tuesday, September 28, 2021, and was characterized as a “transaction [that] unlocks significant capital that will be used toward fueling the [Aboitiz Equity Ventures] Group’s growth initiatives.”
“This transaction will deepen our bonds and represents a leap forward in our shared mission to support economic development in the Philippines and beyond while supporting the energy transition towards a decarbonized future,” AboitizPower President and Chief Executive Officer Emmanuel V. Rubio said.
JERA is one of the world’s largest power producers and the largest single liquefied natural gas (LNG) buyer in the world. Rubio said that as the energy sector undergoes a transition, this presents a great opportunity for AboitizPower.
With a presence in more than 10 countries across the globe, JERA’s international footprint provides AboitizPower with further opportunities for collaboration and new market entry.
Rubio shared that this partnership with JERA will result in a more future-ready organization with access to new perspectives, capabilities, and a global network.
“Through this partnership, we hope to build on our 10-year plan, where we aim to reduce the carbon intensity of our business. We intend to explore new pathways toward decarbonization that will complement our renewable energy growth plan and our nature-based carbon sequestration program,” said Rubio.
AboitizPower earlier announced its 10-year growth ambition, where it aims to exponentially increase its Cleanergy capacity to 4,600 MW to achieve a 50:50 balance between its renewable and thermal portfolios. The company’s top executive pointed out that its “partnership with JERA will be a key enabler in this journey.”
Both parties have already identified potential areas for collaboration across multiple fronts including joint development of LNG-to-power projects, LNG fuel sourcing and management, potential participation in aspects of plant operations and maintenance, as well as the exploration of the use of new generation technologies.
Rubio assured that there will be no management changes resulting from the partnership, but rather a “greater diversity of perspective at the board and enhanced governance.”
“We are optimistic that our partnership will bring about positive change not only for our organizations but, ultimately, for the customers and communities we serve,” Rubio said. ###